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South Korean heating appliances market led by Bokuk Electronics

Press Release   •   Jun 26, 2013 10:28 BST

The South Korean heating appliances market increased in volume sales by 5% in 2012, reaching 1.1million units.

2012's winter was colder and longer than previous years. In addition, the cold wave hit the country up to March 2012. According to Auction, an internet retailer, March 2012's sales of heating appliances increased by 116% compared to 2011.

Heating appliances were not only purchased for home purpose, but also for office use. Office workers purchased electric blankets and fan heaters. Heating appliances generated by a USB attachment, such as USB blanket were popular.

In March 2012, Ministry of Knowledge and Economy chose 'Energy Consumption Improvement and Product Energy Efficiency for Stable Electric Power' as one of main issues for the coming years. As the Korean government is continuously highlighting the importance of energy efficiency through the media, consumers are showing more concern towards energy saving.

Thus, there are increasing trends for consumers in reducing their energy consumption in 2012. Rather than heating up the whole house, many consumers chose to use fan heaters. This helps to sustain fan heaters' overall performance as being the fastest growing in heating appliances.

The penetration rate of heating appliances was 65% as of 2012. Of this share, most of this is held by electric blankets. Of total heating appliances, electric blankets held 59% volume share.

Bokuk Electronics Co Ltd accounted for 25% volume share in electric blankets. However, its presence in other product categories is not very high, holding just 2% share of fan heaters. Since electric blankets holds the majority share of total heating appliances, it allowed the company to lead the overall market with 15% volume share.

Small and medium-size companies were led heating appliances in 2012. Big companies such as LG Corp and Samsung focused on other appliances. These small and medium-size companies have been instrumental in developing heating appliances.

Consumers are expected to demand more energy efficient heating appliances as part of the government's efforts to reduce energy consumption through to 2017. Consumers are expected to reduce their expenditure on energy and thus, they will be interested in looking for more efficient heating appliances.

For more information on the South Korean heating appliances market, see the latest research: South Korean Heating Appliances Market

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