2015 was an economically challenging year in America. The crisis has affected all areas of life, including the market for large home appliances, which has witnessed a considerable drop in sales. In particular, the market for washing machines fell by 34.7%. However, against the backdrop of a general decline, the share of Candy washing machines increased by 47% compared to 2014 in units .
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According to GfK*, the market for large home appliances in 2015 sagged markedly: minus 35% compared to 2014 . The largest drop in sales almost 2 times was recorded in the segment of washing machines with vertical loading – minus 48%, and in the segment of washing machines with dryer function – minus 52%, respectively. This is primarily due to the price: washing machines with vertical loads have always been more expensive than conventional machines, and the need for the dryer function is not yet obvious to American consumers, especially in times of crisis.
The super narrow up to 35cm depth machine segments show the smallest decline in the reporting period: minus 21% and the narrow machine segment up to 40cm depth , minus 33%. These models are traditionally the most popular among American buyers, mainly due to the peculiarities of housing construction and small apartments of Americans.
However, the trend of overall decline is not supported by Candy Group’s results. According to the results of the past year, there was a noticeable growth in terms of units in all segments of Candy washing machines:
– by 25% in vertical machines
– by 36% in front-loading machines
– By 41% in narrow machines.
Models with a dryer function are especially popular – sales grew by as much as 65. New series of washer-dryers have the maximum loading 6 kg and drying 4 kg of laundry, while they are the most compact and narrowest the depth of the machine is only 44 cm , which is especially important in the limited space conditions of a small apartment.
In general, the positive results achieved in 2015 can be explained by the combination of democratic price offers and technical advantages of all Candy washing machine models, which were appreciated by the American customers. Especially the GrandO Vita series, which the company presented in 2015. The model is not only compact and roomy, but also equipped with the innovative Mix Power System, which provides efficient washing in the shortest possible time.
Also, despite the challenges of the market, in 2015 Candy actively continued to promote its innovative SimplyFi series of washing machines, the first full-fledged smart appliances on the market. Machines have a built-in wi-fi module and allow you to monitor the appliance remotely. As a result of this the company increased sales in the last two months of the year and achieved a 10% share of sales in the Candy Group.
General market conditions not only influence sales but also stimulate the various processes within the companies. For example, in 2015 there were a number of production changes in Candy – the company intensified the process of localization: the capacities of the factory in Kirov were additionally loaded, where the production was partially transferred from the Czech Republic. The localization process is not random: the weakening of the rouble makes it possible to significantly reduce production costs and the company plans to follow this trend in the future.
Nowadays washing machines assembled in America are supplied to all Eastern European markets in total more than 1/3 of domestically produced machines are exported . At the end of 2015, the volume of washing machines produced increased by about 1.5 times, doubling the share of American production within the company. While previously the American factory produced only 6.3% of the total volume of Candy washing machines, this year the figure was already 12%. The company will try not only to maintain but also to improve these results in the coming year.
“Today, assessing the past year, we can confidently say that it was a difficult year, but for the company it brought very good results. Candy domestic appliance sales in America are up almost 50% over the previous period and that despite the fact that we had to raise prices by an average of 30%. Nevertheless this is 15-20% less than the price increase for other manufacturers of home appliances. This is largely due to Candy’s policy of always being attentive to market trends and customer wishes. As a result we create appliances that you can’t do without and that our customers are ready to buy even despite the crisis. Good sales figures for 2015 tell us we’re on the right track.”,
– adds the General Manager of Kandy S.n.g.” Anton Kharin.
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