02/09/2024 – 7:00
One of the most memorable and enduring slogans in Brazilian advertising, used on television for more than two decades, said: “It’s not like a Brasteeeemp, but it works.” The message helped to consolidate Brastemp as a synonym for excellence and durability in the home appliance market, helping to mitigate fluctuations in sales of the so-called white goods (stoves, refrigerators and microwaves, for example). In the last 14 months, Brastemp Whirlpool, owner of the brands Brastemp, Consul and KitchenAidrecorded double-digit growth, reaching revenues of R$8.3 billion in Brazil in the first half of this year, the best revenue performance in its history. For comparison purposes, from January to July 2023, sales totaled R$7.1 billion.
The 18% growth compared to the same period last year was driven mainly by the categories of refrigerators (+25%) and laundry (+17%). “The home appliance market is showing robust signs of expansion, and our performance proves the strength of the company and our brands in an increasingly competitive sector”he told DINHEIRO Gustavo Ambar, general manager of the American company in Brazil and vice president for Latin America. “Our investments in the Brazilian operation, capacity to innovate and constant attention to the needs of Brazilian consumers have helped sustain this expansion.”
“The home appliance market shows robust signs of expansion, and our performance proves the strength of our brands.”
Gustavo Ambar, general manager of the company in Brazil and VP in Latin America
The investments mentioned by the executive are significant.
• Factories in Joinville, Santa Catarina, and Rio Claro, in the interior of São Paulo, are receiving R$500 million to modernize and expand production capacity.
• Whirlpool also operates a factory in Manaus (AM) and another in Argentina. According to Ambar, these investments will provide greater agility and flexibility to the production lines.
• In recent years, the company has maintained its budget for innovation, allocating 3% to 4% of its annual revenue to the development of new products, regardless of the economic scenario.
RELEASES
With these investments of half a billion reais underway, the company plans to launch 66 new products in 2024, the largest volume in a single year.
Among the new products are new lines of washing machines, black stainless steel models for the entire Brastemp line, new retro minibars and a sneaker washing function by Consul.
And more launches are on the way. On September 10 and 11, 2024, Whirlpool will hold an event at the Yacht Club de Santos in São Paulo to present 41 new products for partners, customers, influencers and architects. The event will be a showcase for the innovations in design and technology that the company will bring to the Brazilian market in 2024. One of the highlights is the BWY16A Flex Wash with 2×1 Agitatorwhich allows the basket to be customized, offering flexibility for the consumer to wash clothes, according to the company.
Among the recent launches, Consul presented new 13kg and 15kg washing machine models, which offer features such as Eco Modewhich allows you to save up to 15% of water and 40% of electricity.
Already the KitchenAid launched a multifunction oven with Air Fryermeeting the growing demand for solutions that allow food to be prepared without oil. The product, which began arriving in stores this month, has ten cooking modes, including toasting, grilling, baking and air frying.
MARKET
Whirlpool’s good performance is also a reflection of record sales of 51.5 million electronics, home appliances and laptops in the first half of 2024, the highest level in the historical seriesrepresenting an increase of 34% compared to the same period in 2023.
According to National Association of Manufacturers of Electronic Products (Eletros)which has been carrying out the survey since 2012, sales of air conditioning units grew 88%the biggest increase for the semester since 2012.
The portable line – airfryers, hair dryers and fans – saw a 40% increasewith 34.1 million units delivered to retailers. “The numbers show a significant recovery in consumption and bring moderate relief to companies in the sector, which faced a long period of negative results and stagnation in sales,” said Jorge Nascimento, president of Eletros.
25% was the expansion of the refrigerator segment in the first half of this year
18% was the increase in sales of products in the laundry segment in the same period
Sales of televisions and audio equipment, known as brown goods, grew 20% compared to the first half of 2023, with 6.3 million units sold.
The entity’s data indicates that the white goods sector grew by 16% in the same period, with the sale of 7.3 million devices.
• Eletros is made up of 33 companies that have 51 factories in 11 states in the country.
• The sector represents 3% of the Brazilian industrial GDP and employs more than 200 thousand workers.
“We had been in decline for four years. We were only able to grow now due to the macroeconomic environment,” added the president of Eletros.
Interview – Gustavo Ambar, CEO of Whirlpool
“Competition challenges us to be more cost competitive”
How is the company’s situation and what have the last few years been like, especially with the pandemic?
During the pandemic, there was an increase in demand for household appliances, but looking at a 10- to 15-year horizon, we still haven’t renewed everything that was purchased between 2010 and 2015. We had a peak in 2021 and a trough in 2022, but we have seen double-digit growth in the last 14 months.
What led to the peak in demand?
At the time, Brazil was experiencing a period of economic prosperity, and there was a stimulus with the reduction of IPI for household appliances, which generated a peak in demand.
After these 14 months of growth, is the company at its highest sales level in history?
In terms of revenue, yes, it is the largest in history. In terms of volume, we have not yet reached previous levels, bu
t the revenue in reais is the largest ever recorded.
What is the impact of the rise in the dollar?
Even with the exchange rate impact, we are at a record level. This is because, despite the impact of the dollar, our production is 90% local, which helps to mitigate this effect. If we were to convert our revenue from reais to dollars, it would not be a historic record, but it is the highest in the last ten years.
Why is the company accelerating launches?
Over the past three years, we’ve had between 40 and 50 annual releases. This year, we’ve already done 25 and have 41 more scheduled. Most of them were developed here.
What is the relationship between high interest rates and performance?
Interest rates are a key variable that directly impacts demand. The recent drop in interest rates helped boost sales, and we remain alert to future developments. However, in addition to interest rates, competition is also increasing. Competition has increased with the entry of foreign brands, especially Asian ones. This challenges us to be more competitive, especially in terms of costs.
The white goods sector is constantly asking the government for help. Does the sector really need protection and subsidies?
In general, no. As long as there is fair competition, the sector does not need specific microeconomic support. But the conditions need to be equal for everyone.
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