Growth picks up in 2013
Volume and value growth of consumer appliances picked up slightly in 2013, mainly thanks to the Green Household Appliances Subsidy and manufacturers’ aggressive promotions in terms of frequent new launches and price discounts to attract consumers. Volume and value growth in 2013 outperformed the growth rates in 2012, but did not return to the pre-2008 performance, hence lagging behind the volume and value CAGR for the review period.
Small appliances outperforms major appliances
Major appliances such as refrigeration appliances, large cooking appliances and home laundry appliances enjoy higher household penetration in China than small appliances, as they are considered as more important in a household by the average Chinese consumer. As such, the volume growth of major appliances was outpaced by small appliances, owing to the relatively small base of the latter. On the other hand, continuous food safety issues in China prompted many locals to make home-cooked food, triggering a surge in demand for food processors, hand blenders, hand mixers and breadmakers, resulting in buoyant volume growth in 2013.
Product upgrades continue to fuel sales
With consumers’ rising disposable incomes and pursuit of a better standard of living, product upgrades continued to be one of the crucial factors driving sales in 2013. Consumers traded up from semi-automatic/top-loading washing machines to automatic/front-loading washing machines, from single-door to side-by-side and 3-door fridge-freezers, and from standard to inverter air conditioners in the review period. On the other hand, the rigid demand from newlyweds and ongoing urbanisation also supported the strong growth of consumer appliances in 2013.
The leading players further consolidate the market
Domestic players held the lead in consumer appliances in 2013, led by GD Midea Holding and Haier Group. Both manufacturers boast a wide range of products in major and small appliances, possessing advanced product technology and extensive distribution networks across the country. After the structural change to the product portfolio of GD Midea, both companies now target the middle and high-end of the market in China. With frequent new launches and aggressive marketing, these major players continued to consolidate their leading positions in the market in 2013.
Forecast performance is healthy
The consumer appliances market is expected to remain healthy in volume terms, yet to see a slightly slower growth momentum than that seen in the review period. Replacement demand and product upgrades will continue to drive sales, but demand due to urbanisation is anticipated to be weaker, due to the slowdown in urbanisation in the forecast period, after years of accelerated growth in the review period.
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The Consumer Appliances in China market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
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- What are the major brands in China?
- How was category performance been affected by current economic climate?
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This industry report originates from Passport, our Consumer Appliances market research database.