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Established appliance and consumer technology brands are facing growing pressure from Chinese manufacturers as consumers become more cautious about spending and increasingly look for value for money.
This is according to NielsenIQ (NIQ) South Africa, which said emerging Chinese brands affected important sectors of the appliance and consumer technology market during the first half of 2026, as the broader technology and durables (T&D) sector weakened.
“Growing competition from emerging Chinese brands has also introduced more pricing pressure in key segments of the appliance and consumer technology markets,” said NIQ South Africa MD Zak Haeri.
The pressure comes as consumers extend the time between replacing products. NIQ’s “State of the Retail Nation” analysis shows that the T&D market fell 5.8% in value in the first half of 2026, while unit sales fell 2.6%.
South Africa’s home appliances market is estimated at $3.67bn (R58.68bn) in 2026, according to Mordor Intelligence, and is forecast to reach $4.77bn by 2031.
Established brands such as Defy, Whirlpool, Samsung and LG account for about two-thirds of the market’s revenue, while Chinese brands including Hisense, Midea and TCL continue to build their presence through price competition and local manufacturing and assembly.
Hisense has a manufacturing plant in Atlantis, Western Cape, giving the company a local production base, according to Mordor. Chinese brands are also competing in a market where consumers are increasingly focused on affordability.
“Consumers will invest in new products when purchases solve immediate practical needs, improve efficiency, or offer strong value for money,” Haeri said.
The competitive pressure also extends beyond formal retail. Mordor has identified grey market cross-border imports as a challenge for authorised dealers, particularly in provinces close to South Africa’s borders.
“Grey-channel traders exploit currency gaps by moving parallel-import stock through border provinces, undermining authorised dealer pricing and warranty perceptions. Local assembly efforts — exemplified by Hisense’s Atlantis plant — soften but do not eliminate component-cost exposure because compressors, motors and chips are still sourced offshore. The net effect trims the forecast CAGR [compound annual growth rate] by roughly 0.9 percentage points,” said Mordor.
Regulatory action has also highlighted pressure in the appliance market. In April, the International Trade Administration Commission of South Africa imposed antidumping duties on fully automatic top-load washing machines imported from China and Thailand.
Grey-channel traders exploit currency gaps by moving parallel-import stock through border provinces, undermining authorised dealer pricing and warranty perceptions.
— Mordor Intelligence
The information technology category was particularly weak, with sales value falling 10.7% and unit sales declining 2.3%. Average selling prices fell 8.6%, pointing to increased competition and promotional activity, said NIQ.
The major domestic appliances market was down 0.5% in value though unit sales increased 2.1%. Average selling prices fell 2.5%.
Flat screen TVs also recorded a decline in value, falling 6.6%, despite unit sales increasing 4.5%. Average selling prices dropped 10.7%.
For technology products, NIQ said consumers were not necessarily abandoning purchases but were delaying upgrades and keeping devices for longer.
“In the IT and smartphone segments, consumers appear to be postponing upgrades rather than rejecting technology altogether,” Haeri said.
Telecoms, the largest category in South Africa’s T&D market, was the only major category to record sales-value growth, increasing 1.1%. However, unit sales fell 7.9% while average selling prices rose 9.8%.
Business Day
