Inverter air conditioners gain traction with 107 percent growth in sales over the last twelve months
Inverter air conditioners are slowly but surely gaining grounds in the developing economy of the Philippines, where consumers are predominantly still buying the traditional window type air-cons. In the recent 12 months, demand for inverter air-cons registered over a twofold surge from a year ago.
According to the latest retail audit report by GfK Philippines, the air-conditioner market grew by 12 percent in value, with consumers buying 424,000 units in the last 12 months. Much of the growth was contributed by significantly mounting sales from the single split type category, which is available both with and without inverter technology. Despite its higher price, the increasingly popular inverter type grew to now occupy 13 percent more of the total sales volume of single split air con.
“Greater public education and campaigns in environmental issues are bearing fruits as consumers in the Philippines are beginning to recognize the benefits of inverter technology,” commented Mr. Benny Villanueva, General Manager of GfK Philippines. “GfK findings are showing a consistent month on month upward sales trend of single split wall units—the second most popular type following window air-cons.”
With rising consumer adoption of the higher-end inverter technology air conditioners, average price of the appliance in the country has escalated correspondingly by nearly 15 percent. Air-con price on average has passed the USD500 mark to now cost USD567, as compared to last year’s USD496.
“The growing popularity of inverter air-cons can also be attributed to the keen competition among the expanding number of brands and models in the market, and manufacturers’ aggressive promotion of the advantages,” observed Mr. Villanueva. “And with the country having the most expensive electricity in the whole of Asia, discerning consumers understand the benefits that come with the higher price tag and have come to appreciate the long term savings that can be derived from with this energy efficient appliance.”
“With the relatively low penetration of inverter technology in households across the Philippines, a wealth of potential exists in the future of inverter air cons. We can expect to see continued strong growth in this product category, and expect it to be the driving force behind the robust expansion of the overall air conditioner segment,” concluded Mr. Villanueva.