DIGITAL LIFE

In their third generation, air fryers are bigger, more efficient, and will become cheaper, says Philips Walita CEO

Large air fryers with fast cooking—and, to everyone's delight, easier to clean—bean-to-macchiato coffee makers, and cordless automatic vacuum cleaners equipped with artificial intelligence (AI). Technology is accelerating innovations in portable appliances, which will become more affordable in the coming years, predicts Philips Walita CEO Fernando Bueno(in the image below next to) in an interview with O GLOBO. One of Brazil's most traditional appliance brands, Walita was acquired decades ago by Philips, but the Dutch giant has maintained the Brazilian brand in the domestic market and is targeting a premium consumer, willing to pay a little more for larger appliances with more built-in technology in search of greater convenience and agility.

The company also boasts a two-year warranty and a technical support network with over 200 accredited service centers nationwide to win over this consumer, says the executive.

What is the current consumer trend in small appliances?

-Purchases are shifting toward larger-capacity products. This year, we launched a 12-liter air fryer, as well as a model with two baskets, and we will have new launches in the future. The air fryer segment with five liters or less once represented 60% of the market and is now only 35%. This trend is expected to continue declining.

While sales of smaller air fryers are falling by double digits, those with five to seven liters are growing. Ten-liter air fryers are growing by over 50%. Consumers are already entering the second or third generation of air fryers. And the penetration of this product in Brazil is still low, at around 30% (of households).

Consumers are still testing air fryers and starting with smaller products, which explains why this segment isn't over. But the 30% who already use air fryers are migrating to larger, more efficient, premium, or higher-performance models.

The three largest portable appliance categories in Brazil are air fryers, vacuum cleaners, and fans. We were already in one, are entering the second, and have plans for others soon.

Why aren't fans sold in Brazil yet?

-We have a strong focus on everything we do. We don't launch products just for the sake of it. If the goal is to be a leader in the premium segment, we launch a category, achieve leadership, and then move on to the next. We don't launch randomly.

Before expanding into other categories, we needed to become a leader in the premium segment of air fryers, blenders, and coffee makers. We develop products with a consumer demand or need in mind that they don't even know they have yet. Next year, we'll launch a voice-activated coffee maker in Europe, for example.

When should it arrive in Brazil?

-Usually six months after its launch in Europe. Today, we have almost the entire market share of super-automatic coffee makers, the ones where you put in the beans, press two buttons, and the coffee comes out instantly. Now our job is to encourage more consumers to switch from capsule coffee makers to super-automatic coffee makers. It's cheaper to buy the beans and grind them fresh, and it's more sustainable.

Why do Brazilians prefer capsule machines?

-They were the first system to offer espresso to consumers. Today, capsules represent a little less than half the market, but this share has been declining because we have dramatically expanded the super-automatic market, which is growing more than 60% annually. Last year, it grew 70%, and this year it's expected to grow another 60%.

Is this related to the increase in premium coffee consumption?

-Brazilians are evolving their coffee consumption, and new beverages are emerging. Our most premium coffee maker prepares twenty types of drinks, including iced coffee. It's not just espresso anymore: there are also macchiatos, lattes, Americanos, and others. Coffee consumption is evolving, accompanied by the wide variety of premium coffees available.

How do you assess the competition, especially in the air fryer market, which has been welcoming new brands to Brazil?

-There are two very large brands in Brazil, Mondial and Britannia, but they focus on capturing the first air fryer consumer. They focus on smaller-capacity products. Our goal is to be a leader in the mid-range and premium segments.

What's been happening in Brazil is the emergence of some very cheap Chinese brands, and this has driven down the average price of air fryers. However, these brands operate precisely in the segment that's declining (lower capacity), so it must be a short-term trend.

Is small appliance consumption growing? Why?

-Last year was the best year ever for small appliances. Apartments are getting smaller, which favors the market, especially for small appliances that replace other methods of use (such as vacuum cleaners and air fryers).

Consumers are quite clear about wanting technology in products. Furthermore, the taboo that small appliances consume a lot of energy has disappeared. Appliances are becoming increasingly efficient. Not only us, but all our competitors have focused on more energy-efficient products. I see promising growth for small appliances in the next two or three years in Brazil.

Could high interest rates on credit and rising default rates limit this potential?

-Default is always a topic we need to consider, but surprisingly, Brazil has one of the lowest default rates in the world for us as a company. We maintain a close relationship with all retailers, ensuring consistent plans to avoid excessively high inventory levels.

What innovations can we expect for the sector in the coming years?

-We're seeing the world moving toward artificial intelligence (AI) and connected products. It will become easier to make autonomous and connected products. It's not just a product connected to Alexa—we already have that. We already have products that we can program to turn on at a specific time and operate for a long time.

The future is to embed AI in products and make voice connectivity more efficient. Another trend is embedded technology that the consumer cannot see, but which increases energy efficiency and food preparation speed. For example, an air fryer we launched this year with Rapid Air technology can cook almost 50% faster than traditional models.

So, is saving time the big trend? Does this involve air fryers that are easier to clean?

-Absolutely. All of our air fryers are made with corrosion-resistant, low-abrasive materials, precisely so they're dishwasher-safe. We're also launching products without a basket, just with a rack. You remove the rack, put it in the dishwasher, and it comes out clean, ready to use again, with no residue.

Consumers want products that take up little space and are practical. There are always those who will want to buy cheaper items, but we see consumers becoming more selective about the product's delivery, the value it offers, and the technology it uses. And technology will become cheaper with each passing year, which will surely cause prices to drop over time.

Why did the company keep the Walita brand in Brazil?

-In other countries, the brand is Philips, with the same products we have in Brazil. We keep Walita here because it's one of the country's most iconic brands. It's in the Ipiranga Museum as a Brazilian relic. For us, it's important to unite two assets: Walita, which brings tradition, quality, and safety, and Philips, which represents technology.

mundophone