House Economy Promotes The Development Of The Home Appliance Industry

- Mar 21, 2020-

Why do all kinds of small appliances prosper during epidemic prevention?


Expert analysis: During the "home" period, people's living needs have not decreased, but restaurants, gyms, cinemas, KTVs, etc. have all been moved into the home, and new consumption scenarios have generated new consumer demand.


"The biggest feature of recent consumption is that the consumption growth related to the" housing economy "is relatively obvious." Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade, told this reporter. The characteristics of the home appliance industry coincide with consumer demand during the epidemic prevention period. Zhao Ping analyzes that home appliances are an important carrier of home life. Whether it is a traditional home appliance or an emerging small home appliance, it can provide people with cultural and entertainment related activities at home, so it has become an essential tool for "home" life during the epidemic prevention period.


"Affected by the epidemic, consumers staying at home for a longer period of time have greatly increased the frequency of interaction between consumers and home appliances, which will increase the demand for new products, and stimulate new kitchen small appliances that assist in cooking and liberate household chores. Demand for products, such as steam ovens, dishwashers, steam mops, etc. In addition, consumer health concepts have improved significantly, and home appliances with features such as 'healthy and clean' have received more attention recently, such as disinfection cabinets, dishwashers , Purifiers, water purifiers, washing machines with the function of healthy washing or drying clothes. "The relevant person in charge of the China Household Electrical Appliances Association said in an interview with this reporter.


The smooth online sales channels provide convenience for home appliance consumption. On the one hand, a large number of household appliances and small appliances are sold on e-commerce platforms. Data show that the online and offline integration trend of China's home appliance retail channels is obvious in 2019. The annual online appliance retail sales of 366.8 billion yuan, a year-on-year increase of 11.6%, accounted for 41.17% of the total retail sales of the home appliance market online. In particular, some new and subdivided small household appliances are mainly promoted online. During the epidemic prevention period, they also carry live broadcasts through online celebrities, so that consumers can choose carefully without leaving home. On the other hand, the express delivery in major cities has not been completely shut down, and has been fully resumed from mid-February to send the goods to consumers faster.


From the perspective of supply, in recent years, under the trend of double upgrading of industrial consumption, home appliance companies have developed a number of new small appliances, wall breaking machines, coffee machines, health pots, and multi-function cooking machines ... Rich, low unit price, installation-free, itself is in the market expansion stage. Recently, a large number of "homes" of residents have just discovered these new commodities and realized the connection between supply and demand.


Quality life will become the direction of consumption


——Anti-epidemic will make consumers pay more attention to health and pursue quality, which will drive the expansion of quality consumption and promote consumption upgrade


The hot selling of new home appliances reflects people's pursuit of quality life.


At 00:00 on February 18, Zhen Ye snapped up a stand-alone dishwasher for RMB 5,399. "When I made an appointment before, I found that 50,000 people have reserved this dishwasher. There is an event on platform 18, which can be 200 yuan cheaper. I'm afraid I can't catch the alarm clock." In addition to the dishwasher, he I also bought a small 3,000 yuan refrigerator in the living room, specifically for fruit and drinks.


Nowadays, household appliances such as dishwashers, which can improve the quality of life and are not cheap, are becoming more and more popular with consumers. China Electronics and Information Industry Development Research Institute recently released the "2019 China Home Appliance Market Report", stating that consumer upgrades are a major feature of the Chinese home appliance industry market in 2019. 4K TVs account for 85% of TV retail sales, and first-class energy-efficient air-conditioning products account for air-conditioning. 59.2% of retail sales, and the growth rate of high-end refrigerators above 11,000 yuan has reached 17.4%; 4000-9000 yuan is the highest price segment for consumer acceptance of dishwashers, and the retail sales of products within 4,000 yuan account for less than 15% Primary energy efficiency products occupy the absolute mainstream of the washing machine market, with a retail share of 87.4%.


Zhao Ping said that the current consumption upgrade is reflected in the three characteristics of quality, branding and taste consumption. Small appliances are just an important representative and important carrier of quality life. "Quality is determined by the details. A variety of small appliances can meet people's needs for appliances in different scenarios of daily life. And because of the wide variety of small appliances and the many brands, the consumption of small appliances can reflect the individual The quality of small appliances is not a new outlet due to the epidemic, but the result of consumption upgrades. Products related to consumption upgrades have grown rapidly. "


Zhao Ping analyzes that the epidemic will accelerate the pace of upgrading the consumption structure, and the fight against the epidemic will make people pay more attention to health issues and cherish life. In order to improve the quality of life, both quality goods and services will be more popular than before, and quality consumption will become an important direction for consumption upgrade in the future.


Are these new changes in the consumer industry “a flash in the pan”?


"The epidemic has changed people's consumption philosophy. People are more willing to buy products that conform to the new consumption philosophy. For example, the demand for public health products such as health-promoting products and masks, disinfectants, and hand sanitizers will still be higher after the epidemic than before the epidemic. Secondly, the online shopping habits have been established, and the new type of consumption formed by the e-commerce platform will usher in new growth space. Therefore, I think these new changes will continue after the epidemic is over. "


"Home appliances are just-in-demand products, and the home appliance industry has strong resilience. In the long run, the global advantages accumulated and formed by Chinese home appliance companies in the past 10 years are already very obvious. Especially for some companies with a global strategic consciousness, they The layout will ensure the company's response to the crisis and sustainable development. In addition, the home appliance industry is also a highly market-oriented industry. It has always been consumer-oriented and market-oriented, researching and developing products that meet consumer demand. In the development of sales models and channels, It has also been exploring consumer demand. The home appliance industry has maintained its driving force, whether in technological innovation, model innovation, channel innovation, etc. This driving force for innovation continues, and it will not bring about substantial changes due to the impact of the epidemic. "China Household Electrical Appliances Association Relevant responsible person said.