Three characteristics of home appliance market bid farewell to brutal growth

OFweek smart home network news: The latest monitoring data show that in 2016 the scale of China's home appliance market grew only 3.2% year-on-year, the overall market size of home appliances farewell to the rapid growth model, is entering the product structure upgrade sideways adjustment period. The home appliance industry has experienced hundreds of years of baptism. The shape of products and the industry pattern have already turned upside down. The "barbarous growth" stage has quietly passed and the era of intensive cultivation has come. As Jiang Feng, chairman of the China Household Electrical Appliances Association, said, China's home appliance industry is undergoing a period of transition from high-speed growth to low-speed growth.

As the overall growth of the home appliance market slows down, the three major market characteristics are becoming increasingly prominent:

The age of technology dividends is coming

Looking at the current development of the home appliance market, the era of industrial demographic dividend has passed, and it is difficult for companies to rely on capacity expansion to achieve barbaric growth. The immediate imperative is to drive through technological innovation and move toward quality and high-end. In addition to a new round of industrial adjustment, the pace of transformation and upgrading of home appliance companies has been accelerated, new demands for consumers have been met through technological innovation, and the potential for market growth has been tapped. This has become the main tone of the home appliance industry in the future.

In fact, in the past two years, the sub-sectors of the home appliance industry in China have made a lot of breakthroughs in technological innovation, and the technological transformation results are very obvious. Specific to the television industry, just after the end of the Shanghai AWE, OLED, 8K, HDR and many other innovative technologies, has shocked the eye of visitors, Sharp 8K television products unveiled; Hisense Titan series ULED TV eye-catching; Samsung 65Q8C first four sides without The box TV is stunning; Skyworth's world's first AR TV S9D is compelling... With special emphasis on display effects, OLED and quantum dot technology have become the absolute trend of the TV industry, and the match between the two camps is still in progress. Samsung, the forerunner of quantum dot display technology, has taken quantum dot technology to new heights from the first generation quantum dot technology to the second generation of cadmium-free quantum dots to this year's QLED light quality sub-dot; "From the world's first mass production of 4K OLED organic TVs, to the release of the world's first AR TV, and the launch of China's first self-developed OLED TV, Skyworth has become the industry's leader in the "China OLED TV First Brand". Since the beginning of the year, OLED and quantum dot technology have become more and more intense.

In the field of refrigerators, refrigerator technologies such as health preservation and high-capacity intelligence continue to innovate. Introduce artificial intelligence technology to realize human-machine voice interaction, and actively perceive and understand user needs and respond to the needs of Haier Xin Kitchen Internet Refrigerator; the first integrated frequency conversion technology realizes “fast cooling and small temperature difference” and achieves the storage temperature needed for food faster. The temperature is more constant, can maintain the original fresh taste of TCL integrated inverter air-cooled refrigerators, etc., innovative technology enables the refrigerator to bring more healthy and high-end life experience around the basic needs of users.

In the field of washing machines, Haier washing machines with a coin showing technological innovation to achieve the world's high level; TCL contaminant-free washing machines with strong pollution-free system solutions that bring secondary pollution to laundry; with classified processing, simultaneous washing, intelligent drying technology Three-in-one function, one-time solution to all the difficulties in the laundry process, such as Samsung's new washing machine, FlexWash washing machine, are all showing the powerful charm of innovative technology in the field of washing machines.

With the advent of the technological dividend era, Jiang Feng believes that consumers are increasingly demanding product quality, which raises higher requirements and challenges for product and technology innovation. “We should capture the pain points of consumers and better satisfy consumer needs through innovation. Products with substantial innovation will stimulate new market demands and become bright spots in the future market.”

Appliance structure upgrade process speed

At present, the family economy has risen sharply, and China’s middle class, which has high spending power and pursues high-end products, is rapidly rising. With the change in consumption levels, consumer demand is changing from “you” to “excellent” consumers. The demand for high-end appliances has greatly increased. A survey of consumer surveys in 10 large and medium-sized cities in Beijing, Shanghai, and Shenzhen revealed that nearly 80% of consumers plan to purchase high-end home appliances in the last six months. In the context of China's continued supply-side structural reforms, the home appliance industry is focusing on the needs of high-end users, and the task of accelerating industrial upgrading to meet consumption upgrades is even more important and urgent.

The process of home appliance structure upgrading is increasing, the proportion of smart TVs continues to expand, and ultra-thin and curved TVs have become bright spots in the market. Inverter refrigerators, drum washing machines, and smart air conditioners have maintained rapid growth, and smart self-cleaning and high-efficiency suction have become the standard for range hoods. The product structure upgrade provides room for the future development of the home appliance industry. It can be seen that with the emergence of new trends in home appliance consumption, the home appliance business price war will become a thing of the past, and the high-end use of intelligence as a representation has become a weapon for home appliance companies. According to the survey data from the Yikang Group, consumers are paying more attention to “smart control”, “energy conservation and environmental protection,” “sterilization and preservation,” and “appearance” when choosing high-end home appliances. Among them, “smart handling” of washing machine products is a selling point. The degree of attention is close to 40%, and the attention rate of color TV "smart operating system" is more than 50%.

This year, the smart home appliance ecology will become the mainstream of the industry, basic intelligent technology research, unified security standards, large-scale application of industrial Internet of Things, intelligent single product interconnection, preliminary trials of smart communities, and the emergence of the Internet of Things. According to statistics, the smart home market in China will reach 120 billion yuan in 2016, and will reach 180 billion yuan in 2018.

However, the depth of development and application of artificial intelligence is not yet particularly mature, and does not enter the rapid growing period or the outbreak period that we expect. The current automation of using mobile phones to control electrical appliances does not mean that it is intelligent. Moreover, smart home appliances cannot be interconnected between different brands, resulting in intelligent products provided by enterprises are isolated intelligent and fragmented programs, unable to provide consumers with a good experience, which to some extent hindered the further development of smart appliances.

People in the industry believe that the popularity of smart home appliances in China will follow a gradual development path from single product to portfolio, from smart technology to smart life, and the intelligentization of home appliances is increasing. It is expected that the smart trend of the home appliance industry will become even more apparent this year. It will gradually shift from the initial pseudo-intelligence to the “real intelligence” that satisfies the needs of users. This is both a new opportunity and a new challenge. While home appliance giants are competing for a huge market share in smart homes, their R&D and innovative technological capabilities will also face severe challenges.

Individual industry development ushered in an outbreak of gold

Although the overall home appliance market has slowed down, in recent years, certain segments such as kitchen appliances and small household appliances have developed rapidly, or will usher in a golden explosion period in the future. Taking the most representative kitchen appliance industry as an example, the Ove Cloud Network monitoring data shows that in 2016 China's kitchen power market experienced a steady growth, with a retail scale of RMB 62.7 billion, a year-on-year increase of 7.9%, and the market performed particularly well.

Nowadays, after 80 and 90, it has gradually become the main body of China's consumer market, and consumer demand has undergone tremendous changes. In addition to the promotion of consumption upgrades throughout the appliance market, last year, the product structure of kitchen appliances showed a high-end upgrade, resulting in a rapid increase in the kitchen power market both in terms of profitability and volume growth. Taking the sales of range hoods as an example, in 2016, both the online and off-line markets of soot machines achieved high sales growth. Data show that from January 2016 to December 2016, the cumulative domestic production of smoke extraction hoods increased by 2.81% year-on-year, an increase of 3.34 percentage points over the same period of last year. Unlike other household appliances, the increase in the amount of retail sales is significantly higher than retail sales, indicating that the high-end performance of the range hood market is outstanding, and the average price increases. In addition, emerging kitchen and electric appliances represented by electric ovens, dishwashers, steam ovens, and water purifiers are gaining momentum, and even more explosive growth has occurred.

In addition, industry insiders pointed out that when the high-end strategy embarked on a new track of consumer upgrades, the Chinese kitchen and electric industry will usher in a new round of full-scale outbreak this year. Market recovery, policy orientation and consumption upgrades will be the three major reasons for the popularity of the kitchen appliance market. It can be seen that, driven by the new type of urbanization, the demand in the tertiary and tertiary markets is very strong and the performance is very active. At the same time, along with the first-line kitchen appliance brands have introduced a series of products with high energy efficiency and low noise, plus some kitchen electric products that can meet the needs of China's open kitchens, healthy kitchens, and low-carbon kitchens. The market for kitchen appliances is further boosted. The “kitchen economy” centered on smart kitchen appliances will become a “hot spot” for major companies to compete for.

Jiang Feng, chairman of the China Household Electrical Appliances Association, said at the 2016 China Kitchen Power Summit that there is still great potential in the kitchen power market, with the upgrading of products promoting the upgrading of product structure, the rapid growth of emerging kitchen and electrical appliances, and the steady development of new urbanization. Advancement is expected to make kitchen appliances another pillar industry for home appliances.

To sum up, the current home appliance market has bid farewell to the "barbarous growth" phase and opened up a new chapter in intensive cultivation based on meeting the needs of users. The stages of technological innovation, structural upgrading, and the outbreak of individual industries will become even more prominent. This requires home appliance companies to learn to grasp the pace of market development, and to meet the increasingly demanding product demands of consumers, and to strengthen technological innovation. The future market will open up.

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