Household Electrical Appliances Attract Shoppers Amidst Decline in Electronics Sales

In recent years, electronics centers and supermarkets have witnessed a decline in foot traffic, with areas displaying televisions, air conditioners, washing machines, and refrigerators being the most deserted. However, household electrical appliances have bucked this trend, attracting a large number of shoppers.

According to Mr. Lien Binh Thai, business manager at Cho Lon electronics supermarket in Ho Chi Minh City, consumers are increasingly seeking to upgrade their household electrical appliances with smarter, more energy-saving, and healthier features. This trend has been evident even during the COVID-19 pandemic, with household electrical products experiencing a 30% to 50% increase in purchasing power compared to pre-pandemic levels.

Retailers Report Strong Sales of Home Appliances

Several electronics supermarket systems in Ho Chi Minh City have confirmed that household electrical appliances are in high demand due to their affordability. Products such as rechargeable desk fans, super-fast water heaters, blenders, orange juicers, and hair dryers are selling well, with prices ranging from 69,000 VND to 170,000 VND. These products have a timeless appeal, with many models remaining popular for over a decade, eliminating the need for manufacturers to invest heavily in new designs.

Market Growth and Profitability

Mr. Nguyen Viet Anh, Deputy General Director of FPT Retail, believes that the home appliance market has significant growth potential, with FPT Shop generating revenue of over 400 billion VND annually. The market is expected to continue growing in the coming years, driven by rapid urbanization. Mr. Pham Cong Bang, Sales Director of Hisense Electronics, notes that home appliances have recorded strong purchasing power due to lower brand loyalty and less intense competition compared to electronics.

Notably, the profit margin of household electrical products is 5% to 10% higher than that of electrical appliances. Many high-end household appliances can fetch prices of up to tens of millions of VND, resulting in substantial profits for businesses. Additionally, these products are relatively compact, requiring minimal warehouse investments for storage and inventory management.

Shift in Business Strategy

Mr. Tran Ngoc Thien, director of a company in Ho Chi Minh City specializing in distributing televisions, has shifted his business strategy to focus on household electrical appliances due to the decline in television sales. Since the beginning of 2024, the company has achieved expected sales, and Mr. Thien warns that the household electrical appliance industry is poised to experience a surge in cheap imports from China, which could impact domestic retail systems if they fail to adapt.