May 20, 2024

New markets in urban and rural areas, home appliance market usher in new room for growth

With the cooling of the real estate market, the high growth trend of China's home appliance market has gradually declined. Since the beginning of this year, urban renewal markets and rural new markets have become new growth spaces for the home appliance market. At the same time, the characteristics of quality, intelligence, individualization, and diversified consumption are prominent, and mid-to-high-end products have become a new driving force for the home appliance market. Leading companies have begun to actively explore online and offline collaboration to create smart retail models.

On August 10, the press conference of the "2018 Semi-annual Report on China's Home Appliance Industry" organized by the China Household Electrical Appliances Research Institute and hosted by the National Household Appliance Industry Information Center was announced. The home appliance market reached 421.3 billion yuan in the first half of the year, a year-on-year increase of 9.7 %.

Since the beginning of this year, urban renewal markets and new rural markets have become new growth areas for the home appliance market, keeping home appliance consumption at a “temperature”. At the same time, as "post-90s" people gradually become the main consumer, the characteristics of quality, intelligence, individualization, and diversified consumption are prominent, and mid-to-high-end products have become a new driving force in the home appliance market.

New markets in urban and rural areas, home appliance market usher in new room for growth

The report shows that in the first half of the year, the retail volume of 65-inch and above color TVs accounted for close to 10%, a doubling of the same period last year; the sales of color TV products equipped with 4K, OLED, quantum dots, artificial intelligence and other functions all grew strongly, highlighting consumption The favor of high-end products.

At the same time, consumers are more inclined to choose diversified, energy-saving, and intelligent products. For example, high wind pressure has become another major selling point of range hoods, and the proportion of smart hoods equipped with screens is also continuing to increase; gas with first-class energy efficiency The proportion of stoves exceeds 50%; the market share of embedded kitchen appliances equipped with APP, remote control, and smart cloud menus accounted for 32.9%.

At the same time, with the increase in the penetration rate of online retail and the optimization of professional e-commerce in logistics, distribution, installation, after-sales service and other links, the online and offline markets are accelerating the integration, and more and more home appliance manufacturers have strengthened their cooperation with e-commerce. Platform strategic cooperation to increase online market share.

The report shows that the scale of the online home appliance market in the first half of the year reached 140.9 billion yuan, a year-on-year increase of 32.8%, continuing the rapid growth trend. However, offline channels still have absolute weight. The report shows that the scale of the offline home appliance market reached 280.4 billion yuan in the first half of the year, a year-on-year increase of 0.9%. Online platforms have strengthened their deployment of offline channels, and the value of offline retail stores is being reassessed.

Wang Xuhua, deputy director of the integrated business department of the China National Light Industry Council, said that with the advent of the era of quality consumption, consumers are increasingly demanding shopping experience and after-sales service. At the same time, as companies continue to explore new retail and O2O models, offline experience is becoming more and more important, and interactive scene marketing is gradually increasing. Companies are paying more and more attention to improving user experience and enhancing user stickiness.

Under the brand-new market form, leading home appliance chain companies have begun to actively explore online and offline collaboration, create smart retail models, and break market bottlenecks by integrating online and offline superior resources. Take Suning as an example. Through the integration of advantageous resources, its product sales have taken a step forward. In the first half of China's omni-channel home appliance sales, Suning Tesco's sales share reached 21.1%.

The report also predicts that China's home appliance market will show a steady growth in the second half of the year. The market size is expected to reach 858.6 billion yuan, an increase of 8.0% year-on-year. The proportion of renewal demand in the total demand will greatly increase, becoming an important "pushing hand" for the "heat preservation" of household appliances consumption. At the same time, high-quality, intelligent, differentiated and emerging home appliances that can further improve consumer experience will become a new driving force for market growth.

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