- Tram Ho
According to estimates of Whirlpool, the market size of Vietnam’s household goods industry is up to 12.5 – 13 billion USD with a higher-than-average growth rate. Specifically, in 2014 retail value increased by 10.65% while this group increased from 12 to 14%, although in the first 11 months of 2015, these figures were 9.44% and 14.9% respectively. .
According to the Ministry of Industry and Trade, currently, consumption of household goods accounts for 9% of the total personal consumption package and in 11 main product groups, the household goods group ranks 4th in terms of consumption. The ministry assessed the prospects of the household goods industry as very large, due to the young population leading to a large demand for household goods (18-45 years old 57-60%), increasing income (over 2,000 USD) leading to change changing demand for quality, more designs.
According to Euromonitor, the average age in Vietnam is 31 years old – a high shopping age, while the average income has improved (US$3,000/person/year), the need to buy new or change household appliances. basic increase even though 70% of Vietnamese households already own all basic household items.
Not to mention, Vietnam has a large population, over 90 million people and by 2020 will exceed the milestone of about 100 million. Therefore, the number of new households will continue to increase, leading to an increase in the demand for household goods. In particular, the development potential in the rural market (accounting for 70% of the total population) for Vietnam’s household goods industry is very large.
That’s why the playground of household goods is vibrant with a series of domestic and foreign brands. In particular, in recent years, a series of foreign “big men” have chosen Vietnam as a key market. During the handshake with DGW, Whirlpool emphasized that Vietnam is a prominent factor in their strategy to expand the Asian market, possibly even setting up factories in the next 3-4 years like Samsung or LG. Before that, Hotwell also attracted attention when it was launched in Vietnam…
Or a luxury brand from Germany, Mr. Dominik Fruth, Regional Director of South and Southeast Asia of Häfele, also shared: “Vietnam is an important market for Häfele. We realize the Asia’s major cities, especially Vietnam, have great potential and high demand for utilizing residential, hotel and commercial space”.
Because, the Vietnamese furniture market under this brand is very vibrant and developed in terms of furniture for housing and hotel projects. Besides, people’s income increases, which improves the quality of life and living space, thereby increasing the demand for high-quality furniture.
Domestically, Hoa Phat in 2021 has attracted attention with the announcement of entering the home appliance market with the ambition to achieve 1 billion USD in revenue from this segment by 2030.
In addition, the home appliance playground also witnessed the race of many other Vietnamese brands such as Sunhouse, Asanzo, Sanaky, Kangaroo or Karofi. These brands will have to compete fiercely with foreign giants such as LG, Samsung, Panasonic, Philips … or some emerging brands including Casper, Beko, Hisense …
There is a remarkable observation according to experts, the percentage of consumers interested in Vietnamese goods is increasing, according to statistics, in the supermarket system of Vietnam, up to 85-95% are Vietnamese brands such as: Happy cook, Sunhouse, Son Ha, Tan A, Dien Quang… are dominating the market.