Industry data reveals the categories that are behind the 5.2% increase in value sales.
The Australian Technical Consumer Goods (TCG) market recorded a third successive quarter of solid growth, with major domestic appliances, telecommunications and small domestic appliances continuing to lead the growth.
Major appliances: A strong, widespread growth area
The major appliance sector experienced value sales growth of 11% compared with third quarter, 2014. The further weakening of the Australian dollar placed an upward pressure on average prices, significantly impacting on value growth. However, a strong housing market and demand for aspirational living were positive contributing factors.
Washing machines, dryers, hobs and hoods experienced double-digit growth rates. Higher-end segments continued to perform the strongest with bottom mount and French door fridges, pyrolytic ovens, cartridge hoods and heat pump dryers, all driving growth.
Blenders and vacuums boom
The small domestic appliance category continued its recent strong performance, experiencing 8% growth in value sales. Food preparation was the fastest growing segment for this quarter, driven by high-end personal blenders with an increasing desire for healthy lifestyle products.
Hand stick models continued to drive vacuum cleaner sales, with the market benefiting from increasing average prices, via the popularity of higher-end products.
Due to cooler weather conditions, electric heating also performed well this quarter, as did coffee machines, where higher-end manual machines fuelled growth.
Wearable devices gain further popularity
The Telecommunications sector recorded strong value growth, up 10% on third quarter last year with continued sales growth for prepaid and outright smartphones, as well as the popularity of new, high value wearable devices.
Within smartphones, prepaid and outright combined to achieve their highest ever share of market, accounting for 44% of all smartphone units sold in third quarter, 2015, led by non-telecommunications retailers. Sales of Chinese brands have doubled in 2015, accounting for a fifth of prepaid and outright purchases in the latest quarter.
For wearable devices, the exceptional sales growth continued, supported by the widening distribution of established models and the launch of new, higher-priced products.
High-end TVs drive return to value growth
The consumer electronics sector returned to value growth of 1%, representing a strong recovery from the second quarter.
Solid growth in the value of the TV market, which accounts for two-thirds of the sector’s turnover, was a key factor. Whilst still experiencing unit sales decline, the overall market average price growth accelerated, increasing by 17% compared with third quarter last year. UHD/4K panel take-up gathered further momentum, with the number of models in the market and promotional offers continuing to rise.
The audio sector had another strong quarter, led by the rapidly growing mini-speakers market, where the increasingly popular Bluetooth models continued to perform well. Soundbars were another major growth area, recording solid growth, although the rate of growth has started to slow.
IT sector in the red
The information technology sector continued to show a modest decline in sales in third quarter, with value sales declining 4% compared with third quarter, 2014.
Whilst IT is the only sector to record an overall decline, some areas continued to perform well. The largest category, portable PCs, consisting mainly of traditional clamshell notebook PCs and 2-in-1 devices, recorded double-digit year-on-year growth, for the fourth consecutive quarter.
A recent slow-down in the rate of tablet PC price erosion was apparent during third quarter, which will be a key factor to limiting value sales declines during the key gift-driven final quarter.