A kitchen range is primarily a combination of a hob/cooktop on the top and an oven below, making it single, unified appliance. Cooktops, stove or oven can be of different sizes and offer different features at individual level. The market for kitchen ranges has been segmented according to product type, the type of end-user and the sales channel.
Made in Italy kitchen ranges are in demand across the globe and possess a reputable position among consumers. Italy kitchen ranges market comprises companies that are in operation since the 19th century and also some of the companies that sell/export in the overseas market more than the domestic market. For instance, an Italian brand, Technosuperiore S.R.L offers Italian designed inspired ranges for the North American market.
Some of the globally renowned brands (not largest) are Verona, Bertazzoni, Alpes Inox, and Technosuperiore S.R.L.–of which Bertazzoni is the largest brand operates over in 60 countries and serves high-end kitchen ranges market.
Italy is one of the largest economies in the world and 3rd largest in Europe. It is also a major manufacturer and exporter of various products in different industries. Italy held 56% of share in intra-trade exports in the European Union while other major contributors are Germany (13%), France (10%), and Spain (5%). A strong economical state of the country allows consumers to spend more on living standards. Hence, Italy relishes the high standard of living as stated by the Human Development Index and is considered as one of the world's highest Quality of Life when it comes to the wellbeing of society. Though gross national income is lowered after 2005, still it is at the higher side and has not affected the spending ability of consumers.
There is immense potential in the remodelling of old homes which are predominant in Italy. Living rooms can be updated with paint but when it comes to kitchens, a major share goes to appliances. The Kitchen range market in Italy is following on the path of other European nations such as Germany and the U.K and also the U.S. in terms of home remodelling. This is major because home tariffs are expected to climb up once remodelling of the home is carried out. With that impression in mind, homeowners in Italy are remodelling their homes to appreciate the home price for a better return on investment while selling.
A unique trend is happening in places in Italy where the municipalities are trying to sell off dilapidated houses for just over one euro. However, they are putting in a clause where purchasers have to provide a deposit of 1000 to 5000 euros for renovation. This is likely to further increase the demand for kitchen ranges.
As per La Fipe, the Italian Federation of Public Exercises, the food consumption of Italian families for out-of-home food services is increasing gradually. Expenditure of Italian households for out-of-home consumption amounted to approx. USD 84,328 million in 2016 which is on the rise. As more households are opting for out-of-home food, commercial services, especially the quick service restaurants (QSR), are beginning to show prominence. This has impacted the kitchen ranges market for commercial type. Prior to the coronavirus outbreak, tourism in Italy was steadily on the rise making it the third most visited country in Europe. Healthy growth in the tourism industry is expected to increase the demand for outside food resulting in more number of quick-service restaurants (QSR). This is expected to have a positive impact on the kitchen ranges market.
The kitchen appliances have undergone a vast technological transformation in the past few years. The need for convenience has made manufacturers adopt unique technologies in kitchen appliances. Smart kitchen ranges are the latest technological advancement that can propel the kitchen ranges market in Italy. Companies are trying to come up with products that are integrated with the Internet of Things (IoT). Manufacturers have developed smart stoves and smart ovens which can be developed into a smart kitchen range. These appliances have sensors that sense the type and weight of food that is cooked and regulate the temperature accordingly. Companies can also integrate touch screen panels and HD cameras for a better user-friendly experience. The companies also have to ensure while integrating, the Italian elements of elegance and simplicity. Hot air circulation, simultaneous cooking in different temperatures, smartphone/tablet control, pyrolytic, catalytic, or hydrolytic features for cleaning are some of the technological advancements that can be incorporated in the kitchen ranges.
The following table shows a Miele product along with its average price range.
There is a strong possibility that consumers can opt for individual cooktops and ovens rather than buying the expensive kitchen range. Moreover, the installation charges for a kitchen range will also be comparably higher than the installation of cooktops and ovens. As per OECD statistics, around 59% of Italians come in the middle-income group. Also, the GDP by PPP in 2018 was recorded at 35,739 USD which is increasing steadily. This may get resolved if companies can put up a marketing strategy to make kitchen ranges a better option.
Trends in 2015 were more inclined towards induction kitchen ranges. Induction cooktops were already in the market but induction technology in kitchen ranges was introduced in 2015.
In 2017, gas kitchen ranges were being perceived as a better option. The new gas kitchen ranges came with smartphone integration which was trending at that time.
Future trends may involve advanced stoves using nano-technology. Live in September 2019 announces the launch of its coated burners which repels oil, water, and other liquid substances. The coated also ensures even and instantaneous heat for pans.
Also, consumer behaviour regarding kitchen ranges will always lean towards having larger cooking space and faster cooking. This coupled with technologically driven product development will be the focus of manufacturers. The use of Artificial Intelligence through smart speakers like Alexa is what consumers will be looking for. Electrolux announced the launch of its intuitive kitchen range in Europe in April 2020. Additionally, as apartments are becoming smaller in size, so is the kitchen. Companies may launch products that are smaller in size with added multi-functionality.
Coffee plays a large role in Italian culture. There are many restaurants and cafes in Italy where coffee is served to owe to which the coffee machine sales for households is expected to decrease. Market growth for refrigerators and dishwashers is expected to be steady as these appliances have limited product development. Moreover, commercial refrigerators and dishwashers are more robust in nature and longer lifecycles.
Some of the prominent players in the market include
Bertazzoni S.p.A is a pioneer in the Italy kitchen range market. The company primarily focuses on partnerships and establishing subsidiaries aligns to strengthen its market position. For instance, the company entered into the Australian market with Technika previously, however, in June 2019 it opened a new dedicated brand outlet in Melbourne to expand their presence across the country. Apart from this, it designed and launched the Bertazzoni Total Steam Oven that uses water-generated steam to deliver excellent cooking results while maintaining the nutritional content, vitamins, and flavors in 2019.
Sub-Zero Group, Inc., one of the leading manufacturers of luxury household appliances, markets products under three brands, Sub-Zero, Wolf, and Cove. The company has a manufacturing unit and a subsidiary present in Italy, under the brand name Frigo2000 S.p.A. It invests heavily in product development and research and development facilities. For instance, in June 2019 Sub-Zero Group invested USD 70 million in the expansion of its R&D facility in Fitchburg. The company strives to augment sales by participating in trade shows and fairs to spread market awareness among consumers about its products. For instance, it participated in the New York Times Food Festival in Oct 2019 that brings together world class-leading chefs, restaurant owners, and industry leaders.
LG Electronics is one of the global leaders engaged in electronic products and washing machines, refrigerators, air conditioners, cleaners microwave ovens, and others. The company majorly focuses on incorporating AI and IoT in its appliances. For instance, in January 2020 the company introduced the new InstaView range with air fry technology for electric and gas models. It also aims to strengthen its R&D and manufacturing capabilities, which are the primary source of its competitiveness and customer value creation. For instance, after launching LG Science Park, it is developing core technologies by cashing in on technical innovations.
Alpes Inox Srl, Miele Italia Srl, Smeg S.p.A are few other leading competitors with considerable penetration in the Italy kitchen range market.
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