Costa Rica: Government to Sell Electric Kitchens

Instead of focusing on being more efficient in its lines of business and stop generating losses, the Costa Rican Electricity Institute will now focus on marketing electric kitchen templates for residential use.

Monday, September 30, 2019

Directors of the Costa Rican Electricity Institute (ICE) stated that after evaluating consumers' purchasing intentions and conducting a financial and risk analysis, they concluded that the launch of the product, called induction templates, in the Costa Rican market is justified.

Ver “Appliance Market: Main Competitors

Isabel Lopez, director of Commercial Management of the Distribution and Marketing Business, told that "... we started this process with a first product for the residential sector, offering induction technology as a new way of preparing food in a faster, more efficient, safer and cleaner way'."

For William Jaubert, a university professor, the "... proposal of the Costa Rican Electricity Institute (ICE) has weaknesses and inconsistencies that must be analyzed. Clearly, in the case of induction insoles, and specifically two discs, ICE targets a lower-income segment, who usually use their kitchens until their useful life is over, so it would not be an exaggeration to say that they will only change them in really special situations.

You may be interested in "Fridges: Purchases up to March 2019

Another challenge that ICE will face is the capacity to react to a high demand scenario, as its supply could be insufficient for the sales that could be achieved.

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Household Appliances: Market Share in Central America

February 2020

At the regional level, it is estimated that Mabe Guatemala, Distribuidora Electrónica, GMG Comercial Costa Rica and Mabe de El Salvador accounted for about 23% of total kitchen imports.

A study by CentralAmericaData's Trade Intelligence Unit shows that El Gallo Más Gallo from Alajuela, Whirpool Guatemala and Agencias Way are other companies with a considerable share of the Central American kitchen market.

Kitchen Ovens: Business with Mexico Up 14%

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In the first quarter of 2019, purchases of electric ovens and grills in the region's countries totaled $20 million, and purchases from companies in Mexico increased 14% over the same period in 2018.

Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAPHIC caption="Click to interact with graphic"]

Appliance Market: Main Competitors

February 2019

In the wholesale appliance distribution business in Costa Rica, it is estimated that Supro Suplidora and Corporación Watersonn represent close to 15% of the market share.

An analysis of CentralAmericaData's information shows that other companies with considerable commercial activity in the wholesale of appliances are Mabeca and Solcasa.

Household Appliance Commercialization Rules

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In Costa Rica, it is proposed to establish a regulatory framework to make the manufacture, import and sale of energy-efficient electrical appliances mandatory by 2020.

Representatives of the Instituto de Normas Tecnicas de Costa Rica (Inteco) informed that the regulatory framework to be approved consists of the implementation of thirteen standards that require electricity consumption limits in appliances, according to which it is defined whether or not they are efficient.

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