Consumer Durables News

Whirlpool’s Market Share Takes A Hit From Private Labels, Rising Costs

Whirlpool lost market share in the washing machine segment as well.

“July was the seventh consecutive month of share loss,” said Emkay. Whirlpool’s market share has contracted 210 basis points year-to-date. The company has lost 90 bps share in FY22 versus FY21, and 130 bps versus FY20.

Demand for washing machines was robust with volumes up 13% year-on-year in July and 11% on a three-year CAGR (YTD basis), said Emkay.

“Strong volume trends, however, were underscored by seasonality and gradual demand recovery in entry-level products.”

Samsung, Haier, Bosch, and other tail brands gained share. Share of Voltas Beko and Lloyd was stable at 2.3% and 1.3%, respectively, Emkay said. Overall, however, the category has seen a contraction of 500 basis points in combined market share of the top five brands, which Emkay attributed to rising competition from private labels.

According to Nirmal Bang, Whirlpool was among the first to take price hikes owing to cost pressures. In the last six months of 2021, too, it lost some market share after it had taken two consecutive price hikes during the year, whereas market leaders like LG and Samsung raised prices much later,

Analysts, however, expect Whirlpool’s margin to improve with commodity prices now abating. Demand is also likely to pick up due to the early onset of the festive season and the need for further pricing action staying out of the picture.

But Whirlpool’s margin will remain restricted to 9-10% over the medium term, according to Chirag Muchhala, research analyst, consumer durables, Centrum Broking. That’s because of heightened competitive intensity with the foray of deep-pocketed players such as Voltas Beko and Lloyd and with peers like LG, Samsung and Haier becoming aggressive.

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