By Shivaun Hales

After a relatively cool Australian summer last year, air conditioning suppliers are hoping for a warmer season to generate increased sales. However the changing retail landscape, stifled by a downturn in consumer spending has superseded the weather as the biggest challenge for most suppliers this year.

Despite getting off to a sluggish start, a number of industry insiders remain hopeful the seasonal products will be well received by consumers as summer approaches.

Air conditioners are typically the common choice for consumers looking to cool the home, however suppliers are becoming more inventive with energy efficient options as consumers express concern around rising electricity costs and the introduction of the carbon tax.

Consumers turn to energy efficiency

As a result, consumers are becoming increasingly savvy about investing in environmentally friendly cooling products that are less expensive to run in the long-term.

This shift in consumer behaviour has also caused suppliers to introduce a stronger focus on electric fans which are marketed as another more sustainable cooling option.

Air conditioner sales fall

According to the latest data from GfK Retail and Technology Australia, air conditioners recorded a dramatic drop in sales unit growth in the year ending September 2011 compared to the year ending September 2010, suggesting retailers and suppliers may have work harder to move stock this summer.

Total units for air conditioners dropped by 17.8% to 455,332 in September 2011, while total value fell 21.8% to $436.15 million. Overall, air conditioners recorded a total average price drop of 4.8% to $1,006 in September 2011.

The slump in air conditioners is also reflective of the changing retail industry, as consumer sentiment levels remain low and personal savings increase. 

When air conditioners were broken down into categories, GfK data reveals the sales of portable air conditioners plummeted by 23% to 70,760 units. The value of portable air conditioners also dropped by 29.7% to $44,580, with the average price slipping 8.5% to $630. 

Despite holding the leading position in terms of value, the fixed air conditioner category saw 16.8% drop in the number of units sold to 384,572in the year to September 2011, with its average price sinking 4.7% to$1,018. Value fell 20.7% to $391.57 million.

Demand grows for electric fans

The GfK data shows an increased demand for electric fans with the category’s overall value surging 16.2% to $48.84 million in September 2011, with units also rising by 31.7% to 1.24 million. Average prices of electric fans dropped with the growing consumer interest, down 11.8% to $45.

The GfK statistics reveal all fan categories registered significant growth in the year leading to September 2011, except for ceiling fans which saw unit sales drop by 32%.

Following the release of Dyson’s Air Multiplier range in 2009, stand fans have experienced a significant rise, with unit sales up 41% in the year.

In terms of unit sales, table fans increased by 29%, floor fans surged by 26%, tower fans were up 18%, and wall mounted fans grew by 12% in the year leading to September 2011. 

Figures demonstrate a greater number of consumers are acting with caution around cooling options due to increasing electricity costs and low levels of consumer sentiment. The introduction of more energy efficient air conditioners from suppliers this year, and the electric fan category look set to resonate with consumers as a more sustainable and economical option.