Analysis of the dishwasher market
The relevance of research
Dishwasher is an electromechanical installation for automatic washing of dishes. The principle of operation is to place the dishes in the appropriate baskets and trays, set a specific program, automatically soak, wash, rinse and dry the dishes.
The first dishwasher was invented by Joel Goughton, who was granted a patent for ""an improvement in a machine for washing dishes."" Goughton's design was inconvenient and inefficient, so it did not receive a noticeable commercial implementation. In 1887, the first usable dishwasher appeared in Chicago, created by Josephine Cochrane. Her debut was at the World's Fair in 1893. Until the 1950s, dishwashers were not widely used, remaining too expensive for the masses of consumers. It wasn't until the 1970s that they became common in homes in North America and Western Europe.
Purpose of the study
Analysis of the state of the dishwasher market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the dishwasher market
Content
Part 1. Overview of the Indian dishwasher market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of dishwashers 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of the dishwasher market
1.5. Competition from substitute products
Part 2. Competitive analysis in the dishwasher market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the production of dishwashers
3.1. Volume and dynamics of domestic production of dishwashers
3.2. Share of exports in the production of dishwashers
3.3. Segmentation of dishwasher production by region
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of dishwashers
4.1. The volume and dynamics of imports of dishwashers
4.2. Import structure
4.3. The volume and dynamics of exports of dishwashers
4.4. Export structure
Part 5. Analysis of the consumption of dishwashers
5.1. Dynamics of consumption of dishwashers
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the dishwasher market until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian dishwasher market
1.1. Main characteristics of the market
Dishwasher is an electromechanical installation for automatic washing of dishes. The principle of operation is to place the dishes in the appropriate baskets and trays, set a specific program, automatically soak, wash, rinse and dry the dishes.
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All dishwashers can be divided into two large groups:
Industrial - designed to wash a large amount of dishes and kitchen utensils, they are used in catering establishments, in hotels and other large establishments.
Household - designed for home use, they differ from industrial ones in more compact sizes and lower performance.
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1.2. Dynamics of the market volume of dishwashers 2015-2019 Potential market capacity
Consider the dynamics of the dishwasher market volume in India for the period from 2015 to the available period of 2020 (10 months, January-October).
Diagram 3. Dynamics of the dishwasher market volume, 2015-2020 (January-October), thousand pieces
The dynamics of the volume of the dishwasher market in India for the period from 2015 to 2019 has … character, except for … in 2015 by …% compared to the previous period. This … market was driven by a surge in sales of household dishwashers in 2014 due to fluctuations in the rupee, as a result of which consumers sought to invest their savings in the purchase of household appliances. In 2015 … real incomes of the population, an increase in prices for imported dishwashers led to the postponement of planned purchases, which affected not only the market in question, but also the markets for other household appliances (for example, washing machines).
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The distribution of shares between federal districts in terms of sales proceeds is not stable. Traditionally, the leader is …, whose share decreased during the period under review and amounted to …% in 2019 … is traditionally the most promising and concentrated sales market. In second place is … with a share of …% in 2019. The share of this district has increased sharply since 2016, which is associated with an increase in imports of household dishwashers.
The total revenue of enterprises in these federal districts occupies a market share of …% on average for the entire period under review. The total share of the rest of the Union Territories is insignificant and amounts to …% in 2019.
The distribution and dynamics of the shares of federal districts in terms of sales proceeds can be explained by several factors: the concentration of importers, population, incomes of the population, the level of effective demand, etc.
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand in the dishwasher market: economic, social, political and technological factors.
Economic forces
GDP dynamics
Gross domestic product (GDP) is a macroeconomic indicator that reflects the market value of all final goods and services produced per year in all sectors of the economy in India for consumption, export and accumulation, regardless of the nationality of the factors of production used. Gross domestic product is the main indicator on the basis of which the level and pace of economic development are determined.
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Table 1. Forecasts of various sources on the indicator of GDP dynamics in India in 2020-2023 (base scenario), %
Thus, experts disagree on the real dynamics of India's GDP in 2020: a decline in the range of …%…% is predicted. In 2021-2023, the economy is expected to recover at a slow pace – by …%.
The factor of the decline in GDP in 2020 has a negative impact on the market in question.
The dynamics of the US dollar against the rupee
Also, one of the factors of pressure on GDP can be called the deterioration of the price environment in the commodity markets.
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Given that the market is represented to a greater extent by foreign-made dishwashers, ... the exchange rate of the rupee against the dollar and the euro has ... an impact on the market in question.
Pandemic COVID-19
The spread of coronavirus infection in 2020 has led to changes in the Indian market for many products, including the dishwasher market.
During the period of self-isolation, the market for large purchases in the country has practically stopped. Significant restrictions in most parts of India as part of the fight against the spread of coronavirus infection (COVID-19) have had a negative impact on non-food retail sales, including the operation of stores as online shopping points and fulfillment of online orders. Against the backdrop of the introduction of the self-isolation regime, the traffic of non-food stores has significantly decreased.
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Public catering facilities
The market for industrial dishwashers is significantly dependent on the development of the B2B market, namely the activity of catering facilities in India.
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Thus, today the catering industry is experiencing significant difficulties due to the pandemic, which negatively affects the market for industrial dishwashers, while, given that the share of this segment is 0,9%, the negative impact of this factor on the analyzed market is rather weak .
Social factors...
Real disposable money income of the population
Effective demand depends on the economic situation and the level of real disposable incomes of consumers.
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Consumer Behavior
Convenience and intuitive ease of use of technology is becoming one of the most important consumer requirements in today's society. The share of people experiencing the stress of high mobility is constantly growing, at least due to urbanization and the expansion of megacities. Such people, on average, have a higher purchasing power, interest in new products, and their needs are a constant incentive for the development of new services.
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Increasing urbanization
Urbanization is a key trend of the post-industrial era.
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Technological factors
Product Information Awareness
Consumer behavior and the interaction of producers of goods and services with buyers are undergoing major changes today. The main ones are related to the development of the Internet and technologies that have changed not only the way of purchasing goods and services, but also all communication in the field of consumption. Today, few people make purchases without first searching and studying the product on the worldwide web.
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online sales
The Internet has become a natural and integral part of the life of modern society. Online sales have become one of the main growth drivers for the household appliances market.
Online sales are a convenient format of interaction for both buyers and sellers. For the former, it removes geographic barriers (you can buy from other cities or even countries) and saves time searching for and paying for the right product. For the second, it opens up opportunities to serve a huge number of customers in parallel 24 hours a day. E-commerce has become one of the fastest growing industries of the 21st century.
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Political factors
Legal regulation of public procurement
Decree of the Government of India dated April 30.04.2020, 616 No. “On establishing a ban on the admission of industrial goods originating from foreign countries for the purpose of procurement for state and municipal needs, as well as industrial goods originating from foreign countries, works (services) performed ( rendered) by foreign persons, for the purposes of procurement for the needs of the country's defense and state security.
According to the Decree, a ban was established on the admission of industrial goods originating from foreign countries (with the exception of the member states of the Eurasian Economic Union) for the purposes of procurement for state and municipal needs according to the approved list. This list includes OKPD-2 28.29.50.000 ""Industrial dishwashers"".
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1.4. Life cycle stage of the dishwasher market
At present, the dishwasher market is in the growth stage of the life cycle, while there are a large number of brands and models on the market, and the quality of the goods is at a high level. The average growth rate of the market volume is …% (for the period 2016-2019).
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1.5. Competition from substitute products
An alternative to a dishwasher is traditional hand washing.
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Part 2. Competitive analysis in the dishwasher market
2.1. Major players in the market
In the Indian market of dishwashers, foreign manufacturers are represented to a greater extent and in greater numbers - imported dishwashers occupy …% of the market. The number of such players exceeds 100. Indian manufacturers are present in the industrial dishwasher segment, their number is less than 5.
Let's present the data on the main producers of the considered market.
Table 5. The main companies participating in the dishwasher market in 2019
Among the leading foreign manufacturers, the following companies can be noted: ... These companies produce household dishwashers.
Among the Indian manufacturers of industrial dishwashers, the brand … can be distinguished, but its share in the overall market structure is insignificant, and therefore the company was not considered further.
2.2. Market shares of the largest competitors
The assessment of the shares of manufacturers represented on the market was made by GidMarket on the basis of import and export data, information on production volumes in value terms.
Diagram 12. Shares of the largest competitors in the dishwasher market in 2019, %
The leader of the Indian market of dishwashers is the company …, whose share is …%, the second place is the company … with a share of …%, followed by the manufacturer … with a share of …%. These foreign brands are represented in the segment of household dishwashers, their total share is …%.
Also, among the largest players in the market, one can note … (share …%) and the Turkish manufacturer … (share …%).
The Indian dishwasher market is highly competitive. The Herfindahl-Hirschman index for the market is HHI=…, the market is ...
2.3. Profiles of major players
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Part 3. Analysis of the production of dishwashers
3.1. Volume and dynamics of domestic production of dishwashers
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The dynamics of the production of industrial dishwashers in India is undulating. The minimum volume of production for the period under review was recorded in 2015 – … pieces, which is by …% lower than the value of the previous period. The maximum volume of production is observed in 2019, the increase was …% compared to 2018 and …% compared to 2015.
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3.2. Share of exports in the production of dishwashers
Diagram 15. The share of exports in production for 2014-2020 (Jan.-Oct.), %
During the period presented, the share of exports in the production of industrial dishwashers has been undulating. In 2018, the maximum value of the indicator is observed - …%. In 2019, the share of exports decreased to …%, which was due to a decrease in the volume of exports of industrial dishwashers in physical terms. According to the data for 10 months of 2020, the share of exports in production amounted to …%.
The share of production for domestic consumption in 2019 decreased compared to 2014 and amounted to …%.
3.3. Segmentation of dishwasher production by region
3.3.1. Production by Union Territories
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3.3.2. Production by states of India
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Part 4. Analysis of foreign trade deliveries of dishwashers
4.1. The volume and dynamics of imports of dishwashers
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The dynamics of imports in value terms is similar to the change in the indicator in physical terms: in 2015 there was a significant ... import by ...%, from 2016 to 2019 there was ... imports of household and industrial dishwashers, in 2019 the indicator reached ... the value for the entire period under review. According to the results of 10 months of 2020, the volume of imports … by …% in dollar terms compared to the same period in 2019.
4.2. Import structure
Table 8. Structure of imports of dishwashers by importing countries in 2019 in kind, units rev.
Dishwashers are mainly imported from non-CIS countries, accounting for ...% of total imports in 2019. For comparison: in 2014 this figure was ...%. The leading importers in 2019 are the following countries: Poland with a share of ...%, China with a share of ...% and Germany with a share of ...%. The total share of the top three is ...%. Mostly household dishwashers are imported from these countries.
Industrial dishwashers are imported mainly from Italy, the share of this country accounts for ...% in the segment of industrial dishwashers, while due to the insignificant share of this group of goods,
Italy ranks only sixth among dishwasher importing countries.
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Also among the main recipient companies of foreign dishwashers are: ... (share ...%), ... (share ...%), ... (share ...%), ... (share ...%), ... (share ...%), ... (share …%). The share of other recipients is less than …%.
Consider the TOP 10 most imported dishwasher brands in India.
Chart 18. TOP-10 foreign brands of dishwashers in 2019, %
The leader among brands of dishwashers imported to India is ... with a share of ...%. The production under this trademark is carried out by the company ... The second place is occupied by the brand ... with a share of ...%. The total share of these leaders among brands is …%.
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4.3. The volume and dynamics of exports of dishwashers
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4.4. Export structure
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Part 5. Analysis of the consumption of dishwashers
5.1. Dynamics of consumption of dishwashers
Diagram 23. Dynamics of consumption of dishwashers in monetary terms, 2015 - 2019, billion Rs.
The dynamics of changes in the consumption of dishwashers tends to increase, except for the fall in 2015 by …% compared to the previous period. The growth of the indicator is due to both the annual increase in consumer prices in the market and the increase in the market volume over the period under review. In 2019, the maximum value of the consumption of dishwashers is observed - the indicator amounted to … Rs., which is …% more compared to 2018.
5.2. Analysis of the results of tenders for the purchase
For the period 01.01.2020/31.12.2020/2019 to / / , more than … contracts for the supply of … dishwashers were concluded for the amount of … Rs., which is …% higher than in in value terms and by …% in physical terms.
Consider large contracts for the purchase of household and industrial dishwashers, concluded in 2020 in the amount of more than ... million Rs.
Table 10. Contracts for tenders for the purchase of dishwashers concluded from 01.01.20 to 31.12.20 in the amount of more than 4 million Rs.
Part 6. Price Analysis
6.1. Average producer prices by union territories
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Average producer prices are for industrial dishwashers, as India is producing this specific market segment. The production of industrial dishwashers is concentrated in the Volga Federal District. During the period under review, there is an annual increase in prices, the largest increase was recorded in 2016 by …% compared to 2015. In subsequent periods, a more moderate growth rate of the indicator is noted.
The average price of manufacturers of industrial dishwashers in India in 2019 was … Rs./pcs. According to the results of 11 months of 2020, the average price is … Rs./unit, the increase was …% compared to the same period in 2019.
6.2. Average consumer prices by states in India
Average consumer prices are given for household dishwashers, as this segment dominates the market in question.
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The increase in consumer prices for dishwashers across Indian states is significant. The average price in 2019 is … Rs. for 1 piece At the same time, the lowest price (in …) is … Rs./unit, which is …% lower than the average value in India, the highest price observed in … is … Rs./unit, which is …% higher than the average for India.
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List of diagrams
Figure 1. Classification of dishwashers
Diagram 2. The ratio of imported and domestic products in the dishwasher market in 2014-2020 (January-October) in physical terms, %
Diagram 3. Dynamics of the dishwasher market volume, 2015-2020 (January-October), thousand pieces
Diagram 4. Market structure by types of dishwashers in real terms in 2019, %
Diagram 5. Revenue (net) from the sale of dishwashers by union territories for 2014 - 2019,%
Diagram 6. Dynamics of India's GDP, 2012-2019, Q1-3 2020, % to the previous year
Chart 7. Monthly dynamics of the US dollar against the rupee, 2015-2020, Rs. for 1 US dollar
Diagram 8. Dynamics of the number of public catering facilities in India in physical terms, 2011-2019, thousand units
Diagram 9. Dynamics of the population of India, as of January 1, 2012-2020, million people, %
Diagram 10. Dynamics of real incomes of the population of India, 2012-2019, % of the previous period
Figure 11. Life cycle stage of the dishwasher market
Diagram 12. Shares of the largest competitors in the dishwasher market in 2019, %
Diagram 13. Dynamics of production volumes of dishwashers in India for 2015 - 2020 (Jan.-Oct.), pieces
Diagram 14. Dynamics of the total revenue of the largest competitors (TOP-5) of dishwashers in India, 2015-2019, billion Rs.
Diagram 15. The share of exports in production for 2014-2020 (Jan.-Oct.), %
Diagram 16. The volume and dynamics of imports of dishwashers in physical terms in 2015-2020 (January-October), thousand units
Diagram 17. The volume and dynamics of imports of dishwashers in monetary terms in 2015-2020 (January-October), mln USD
Chart 18. TOP-10 foreign brands of dishwashers in 2019, %
Diagram 19. Dynamics of export of dishwashers in kind in 2015-2020 (January-October), thousand units
Diagram 20. Dynamics of export of dishwashers in monetary terms in 2015-2020 (January-October), mln USD
Diagram 21. Balance of exports and imports in the dishwasher market in 2014-2019, thousand pieces
Chart 22. Structure of exports by countries in 2019, %
Diagram 23. Dynamics of consumption of dishwashers in monetary terms, 2015 - 2019, billion Rs.
Diagram 24. Forecast of market volume in 2020 - 2024, thousand pieces
List of tables
Table 1. Forecasts of various sources on the indicator of GDP dynamics in India in 2020-2023 (base scenario), %
Table 2. Urban and rural population in India in 2014-2019, million people, %
Table 3. STEP analysis of factors affecting the dishwasher market
Table 4. Comparative characteristics of dishwashing methods
Table 5. The main companies participating in the dishwasher market in 2019
Table 6. Profiles of companies participating in the dishwasher market in 2019
Table 7. Dynamics of the production of dishwashers in India by union territories in 2015-2020 (Jan.-Oct.), pieces
Table 8. Structure of imports of dishwashers by importing countries in 2019 in kind, units rev.
Table 9. Structure of imports of dishwashers by recipient companies in 2019, units rev.
Table 10. Contracts for tenders for the purchase of dishwashers concluded from 01.01.20 to 31.12.20 in the amount of more than 4 million Rs.
Table 11. Average producer prices in the dishwasher market in the Union Territories in 2015-2020 (Jan.-Nov.), Rs./pc.
Table 12. Average consumer prices in the dishwasher market by states of India in 2018-2019, Rs./pc.
Table 13. Assessment of factors of investment attractiveness of the dishwasher market
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