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Product Features Of The Home Appliance Industry

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2. Durable Household industry overview The home appliance industry is a multi-billion dollar industry which includes the Major Appliances (refrigerators, cookers, dishwashers, washing machines & dryers), Small Appliances (Vacuum cleaners, iron, & accessories) and Home Comfort products (air conditioners, water heaters). Home appliances industry competes on the basis of:  Cost structure that impacts the ability to compete on price.  Product features that can provide a competitive advantage, through innovation &  Brand names recognition as a strong basis in the consumer-driven appliance market. Kahn (2015) states that over the last five years the Industry revenue increased 5.5%, reaching $191.3 billion in 2015, expecting an annualized 3.8% grow over the next five years, representing industry revenue of $230.3 billion in 2020. As it is illustrated in figure 1, the industry consists in five major players that account for about 39% of industry market share in a low level of concentration industry that varies between market segment and by region, experiencing consolidation mainly due to company efforts to build economies of scale and scope, with significant merger activity (Kahn 2015). To increase profit margins, home appliance manufacturers are aiming to build sales volume especially in emerging markets, increasing productivity and moving production to regions with lower-cost labour; and/or through the acquisitions of local companies. 3. Companies background Knowing the

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