Appendix 1 to report: Revision of the EU ecolabel criteria for Dishwashers

Markets and sales for dishwashers

1. Product group Dishwashers are sold in a variety of sizes, ranging from 4 settings table-top machines to 14 settings floor-standing appliances.

Table 1: Description of types of dishwashers

Place settings width height table-top or compact 4-6 45 cm 55 cm slim-line 7-10 45-55 cm 85-90 cm standard 12-14 60 cm 85-90 cm

In addition to this the New Zealand company Fisher and Paykel introduced in 1999 a slim line 7 settings Dishdrawer model in 60 cm width, but with only half the height of a standard dishwasher (41 cm) . Two units combined take up the space of one standard dishwasher. The DishDrawer is only available in the Australia / New-Zealand area [www.fp.co.nz, September 2000]

2. Producers The major manufacturers of dishwashers in Europe are Bosch--Hausgeräte (BSH), -group (both Europe based) and Whirlpool-group (US-based). Most manufacturers produce dishwashers under several brand-names.

Table 2: Market share of manufacturers (% based on production volume)

1998 1997 1993 source [a-mag nov99] [a-mag nov98] [a-mag july94] BSH 30% 30% 27.7% Electrolux 20% 20% 11.1% 7.0% (AEG) Whirlpool 11% 11% 12.6% 7% 7% 7.5% Merloni 5% 5% 6.4% 5% 3% 2.4% Groupe 4% 4% Brandt Others 2% (GE) 20% (others) 6.1% (Arcelik) 16% (others) 6.1% (ELFI) 2.9% () 2.1% (GDA) 8.1% (others)

Page 1 Appendix 1 to report: Revision of the EU ecolabel criteria for Dishwashers

Figure 1: Market share of major dishwasher manufacturers (% based on production volume)

BSH 30% Electrolux 20%

Whirlpool 11% Others 18% Miele 7% Groupe Brandt Candy Merloni 4% 5% 5%

3. Number of dishwashers produced Most of the production of dishwashers is concentrated in and Italy. Dishwasher production has ceased in a number of countries, such as Sweden and Austria. Many manufacturers have acquired (by merger, take-over or relocation of facilities) production facilities in Southern and Eastern Europe (see table 3).

4. Industry and importers associations Manufacturers and importers of dishwashers are united in the European Association of Appliance Manufacturers CECED, with members in each country: § Austria - FEEI; § Belgium - Fabrimetal; § Denmark - FEHA; § France - GIFAM; § Germany - ZVEI; § Italy - ANIE; § Netherlands - VLEHAN; § Spain - ANFEL; § Sweden - EHA; § United Kingdom - AMDEA.

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Table 3: Dishwasher production / manufaturers in Europe (units produced / % of country total)

1998 1997 1993 source [a-mag nov99] [a-mag nov98] [a-mag july94] France 350,000 262,000 285,000 § Groupe § 100% § 100% Brandt Germany 3,580,000 3,432,000 2,551,000 § Bosch- § 56% § 55% § 49% Siemens § 19% § 18% § 24% § Whirlpool § 13% § 14% § 13% (AEG) § Electrolux § 12% (AEG) § 14% § Miele § 13% Italy 2,030,000 1,992,000 1,125,000 § Electrolux § 43% § 25% § 44% § Merloni § 19% § 16% § 25% § Candy § 17% § 17% § 10% § Smeg § 14% § 7% § 13% § Ardo Merloni § 7% § 8% Spain 455,000 423,000 175,000 § Bosch- § 62% § 64% § 46% Siemens § 38% § 36% § 54% § Fagor UK 45,000 112,000 134,000 § G.D.A. § 82% § 82% § 75% § Others § 18% § 18% § 25% () (Candy) Austria n.a. 10,000 8,000 Sweden n.a. n.a. 175,000 non EU Switzerland 73,000 Turkey 318,000 458,000 405,000 § Arcelik § 70% § 71% § 74% § Others § 30% § 26% ( / Merloni-)

Sales Table 4 and figure 2 show the sales of dishwashers in a number of European countries.

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Table 4: Dishwashers sold per country (units *1,000)

1998 1997 1993 [a-mag nov99] [a-mag nov98] [a-mag july94] Austria 151 160 135 France 830 761 685 Germany 1,900 1,772 1,350 Italy 588 546 462 Netherlands (n.a.) 277 150 Spain 480 455 265 Sweden (n.a.) 124 106 UK 588 618 450 Switzerland - - 114 Slovenia 25 21 - Turkey 480 506 -

Figure 2: Dishwashers sold per country (units * 1,000)

2000

1800

1600

1400 1993 1997 1200 1998 1000

800

600

400

200

0

F D I E S y AU NL UK rke enia Tu ov Sl

World-wide demand for dishwashers is expected to grow from 12.9 million units in 1996, to 16.0 million units in the year 2000 and 19.2 million units in the year 2006. Eastern Europe is experiencing annual growth of 4.4% [a-manu feb99].

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Market saturation While sales of other consumer durables like washing machines and refrigerators remain relatively constant due to replacement market charateristics, the sales of dishwashers have risen considerably during the last years and are still rising. The market for dishwashers is characterised as an initial acquisition market with many consumers buying their first dishwasher instead of replacing their old one.

Table 5: Overall European market saturation of major appliances

1998 1997 1993 [a-mag nov99] [a-mag nov98] [a-mag july94] Washing machines 89% 87% 90% Refrigerators 98% 98% 98% Dishwashers 38% 37% 28%

Table 6: Market saturation by country

1998 1997 1993 [a-mag nov99] [a-mag nov98] [a-mag july94] Austria 48% 48% 37% France 40% 40% 34% Germany 49% 47% 36% Italy 27% 28% 22% Netherlands 30% 24% 17% Spain n.a. 20% 19% Sweden 51% 50% 41% UK 21% 20% 16% Switzerland - 54% 48% Turkey - - 8%

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Figure 3: Market saturation by country1 for the period 1980 - 1998

60.0 CH

50.0 S A D 40.0 DK N 30.0 F SF Saturation in % 20.0 I NL 10.0 P UK 0.0 E 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Year

The reasons for the differences in penetration rates per country seem to be dependent on country specific dishwashing habits, household size and income, size of dwelling, etc. In general, penetration rates are higher in Northern Europe. In addition, larger households are more likely to own a dishwasher than a small household.

Market saturation per type of machine Table 7 shows that the 60cm standard dishwasher is the most popular type of machine.

Table 7: Saturation per type of dishwasher

settings saturation saturation saturation saturation (1) (2) (3) (4) table-top 4-6 5% 2% 15% 16% mini / mid-size 7-10 20% 13% standard 12-14 85% 84% 75% 86%

(1) Finnish data (from GEA background report 1994) (2) Swedish data (from GEA background report 1994) (3) Dutch data (from Epolis vw-NL, estimated saturation in the Netherlands 1990-98) (4) UK data

The split between free-standing and built-in models is expected to be around 50/50. Data from the Netherlands show that the sales of free standing models has decreased from 49% in

1 The countries in the legend are listed according to saturation rates, from high to low; [ceced VA_DW nov 99]

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1994 to 40% in 1999 (in the Netherlands nowadays most of the dishwashers sold are built-in models). The European average will probably show a higher percentage of free-standing models (free-standing models are usually less expensive).

Consumer behaviour The most used temperature is 65°C or higer (58% of consumers), the others use the lower temperature programme (42%). The most used programme is the programme labelled ‘normal’. According to their own statements most consumers nearly almost fill their machines ¾ full or full. The average frequency of use is 4 times per week [GEA background report 1994]

Importers and retailers Every manufacturer works with national subsidiaries or independent importers per country. These national subsidiaries take care of the national marketing and the physical distribution to the retailers.

The shape of the dishwasher retail sector is different in each European country. In the South (Italy, Spain) there are many small retailers (e.g. 35,000 in Italy), whereas in the North the retail sector is typically dominated by 5 or 6 large retail or franchising chains, which supply more than 80% of the national market.

Table 9: Store densities across Europe

Store densities across Europe (outlets per 10,000 population) Portugal 192 Greece 184 Italy 171 Belgium 141 Spain 134 Luxembourg 116 Denmark 100 France 97 Sweden 94 Norway 92 Ireland 90 Germany 85 UK 81 Netherlands 80 Finland 77 source: Eurostat, Retailing in the Single Market, 1993

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Fig. 4. Sales outlets per 10,000 habitants per country in Europe 1993

Store densities Europe 1993

250

200 150

100

50 0

l outlets per 10,000 inhabitants e y k e n y d y d a c m n rg c e ds n Ital u lan UK a ree Spai ran F Ire PortugG Belgiu enmar Swed Norwa Finl xemboD German Lu Netherlan

Specific market segments are bulk-buyers such as mail-order companies (e.g. Otto Versand, Quelle in Germany) and building corporations buying appliances to be pre-installed in social housing. For instance in Sweden these building corporations constitute 40% of the market.

Apart from these exceptions, the dishwasher market is a heterogeneous market where ultimately the consumer decides. In this decision they are led by “brand” and “price”, but increasingly also environmental aspects and the quality of the product play an important role. In this context, utilities and especially consumer associations, which test the product, can be important. This is particularly true in Scandinavia (S: Konsumentverkett, FIN: e.g. TTS), Germany (Stiftung Warentest), the UK (Consumers Association) and the Netherlands (Consumentenbond).

In Southern Europe, consumer’s associations are small and not a dominant market force. On a European level, many of these smaller groups are represented by Belgium based Conseur.

Table 10 shows the names of some important retailers in Europe.

Market trends Summarizing European trends - Increasing sales and saturation in most countries - Concentration in the production sector through mergers and take-overs. At the moment there are only some 10 important producers in Europe and this number is expected to drop even further. Largest take-over in the 1995-1999 period: Take-over of German AEG Hausgeräte by Swedish Electrolux AB. - Restructuring of the retail sector continues, with even bigger retail chains and buying groups.

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Table 10: European whitegoods retailers (examples)

France chains Darty, Boulanger, But buying groups Expert, Connexion, Gitem Spain buying groups Epert-Fadesa, Gestesa-Master, Densa-Tien Portugal structure mostly independent, small retailers trend: hypermarkets in suburbian areas chains & specialist multiples (e.g. UK structure Kingfisher, Metro) 80%, independent retailers 20% Germany mail order 18% of market (Quelle, Otto Versand) buying groups Expert chains Metro (= Media Market, Kaufhof, etc.) other kitchen specialists 14%, DIY 13% Italy chains Metro/Media Market, Eldo, Elletroingros buying groups GET, Serta Expert, GRE/Idea, Ecoitalia Netherlands chains Megapool, Its Electric, Vendex-group buying groups Expert, Electronic Partner Belgium chains Vanden Borre Finland chains Musta Porssi (Kesko), buying groups Expert Radioliilleiden, Hameenheikki Norway buying groups Elkjop, Eilag Denmark buying groups Danexpert chain Snowhite Sweden buying groups Linkopia Expert, Serv-Line source: Cool labels, 1998

Sources of information

A-mag: stands for Aplliance Magazine (monthly magazine) A-manu: stands for Appliance manufacturer (monthly magazine) A-eff: stands for Appliance Efficiency (quarterly magazine) st-wtest: stands for Stiftung Warentest (monthly consumertest magazine - German)

EpolisVW: by Van Holsteijn & Kemna, May 1999 Cool labels: by the Environmental Change Unit, University of Oxford, September 1998 GEA background report 1994: by the Group for Efficient Appliances, July 1994

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