Last year, home appliance retail innovation will return to normal growth this year

Scale, speed, and industrial upgrading have become keywords for the blueprint of the Chinese home appliance industry in 2010.

Recalling that in 2010, China's home appliance industry has been advancing rapidly and the domestic market has exceeded the trillion-dollar mark for the first time. The annual growth rate of the domestic market exceeded 18%, the highest in the past 10 years, and the growth was beyond expectation. A series of eye-catching data was 2010. The Chinese home appliance industry ended the year and wrote a perfect note.

Scale breaks trillions of yuan mark

In 2010, the sales of home appliances in the domestic market achieved 18% rapid growth, setting the highest in 10 years.

In 2010, the retail sales of the domestic appliance market exceeded 1.04 trillion yuan. Among them, the retail value of the black-box industry is over 170 billion yuan, the white-electricity industry is over 250 billion yuan, the IT and communications industries are above 450 billion yuan, and the kitchen and bathroom and small household appliances are above 170 billion yuan.

In 2010, the domestic appliance market achieved high growth of 18%, hitting the peak of the past 10 years and highlighting the "speed" tension.

According to data from Yikang, in the year of 2010, black power industry became the pioneer in sales growth of the entire household appliance industry. Although the retail volume of color TVs in the overall market increased by only about 5% year-on-year, the total sales volume of color TVs increased by more than 21% year-on-year due to the rapid growth in LCD TV sales. The color TV industry achieved an overall retail volume of more than 40 million units, of which the retail volume of LCD TVs was more than 34 million units, an increase of 40% year-on-year; the retail volume of PDP TVs was more than 1.5 million units, which was basically the same as the previous year.

What is more noteworthy is that in 2010, kitchen and kitchen appliances and small appliances no longer play a supporting role, showing strong explosiveness. According to data from Yikang, the overall retail sales of kitchen and household appliances and small household appliances reached over RMB 170 billion in 2010, a year-on-year increase of 15%. Among them, the retail volume of microwave ovens exceeded 13 million units, retail sales amounted to approximately 7.3 billion yuan, an increase of 7% and 8% year-on-year; the retail sales of hoods were nearly 14 million units, and retail sales were approximately 20.4 billion yuan, an increase of 5 percent year-on-year respectively. % and 15%; retail sales of gas stoves are approximately 17 million units; retail sales are approximately RMB 13 billion, an increase of 6% and 15% respectively; water heater retail sales exceed 24 million units and retail sales are approximately RMB 33.4 billion. It increased by 13% and 18% respectively.

High-end products are becoming popular

Industrial upgrading drove the sales of high-end products such as LED TVs, 3D TVs, drum washing machines, inverter air conditioners, and multi-door refrigerators to increase substantially.

In 2010, China's home appliance industry as a whole showed signs of product upgrades. Flat-panel TVs used to be high-end products in the color TV industry. However, as display technologies continue to evolve, they have gradually become popular products in the market.

In 2010, LED TV experienced an unprecedented explosive growth. The average price of products for the whole year decreased by 56% year-on-year, and retail volume surged by 3200% year-on-year. Judging from the ranking of retail sales, Hisense, Skyworth, and Konka ranked the top three, LED TV market share exceeded 22%, 17%, and 11%, respectively, and the annual growth of LED TV retail sales of the three companies exceeded 2000%. In 2010, also known as the first year of 3D TV, Sony, Panasonic, Changhong, TCL and many other TV brands stormed the market. The market for 3D TVs only took up about 0.4% of the retail volume of the color TV market in just 9 months.

In the washing machine market, drum washing machines play a leading role in the development of high-end washing machines this year. According to data from Yikang, as the price of drum washing machines moves downwards, the signs of market start-up are very obvious. In 2010, the retail volume of drum washing machines grew by as much as 38% year-on-year.

In 2010, in large and medium-sized cities such as Beijing and Shanghai, the market share of the retail sales of drum washing machines has exceeded 50%. This also indicates that the drum washing machine has considerable prospects in the domestic market at all levels. At the same time, the trend of the development of the domestic washing machine market toward the “large-capacity roller” in 2010 is very clear. The retail volume of large-capacity roller products of more than 7 kilograms has reached about 25%, which is an irresistible trend.

In the air-conditioning market, inverter air conditioners began to get rid of the "wonderful" dilemma and entered the popular period. According to the data from Zhongkang, the market share of inverter air conditioners in the major cities in China has reached 35%, and the retail volume has increased by more than 130% year-on-year. Judging from the market structure, the lead of the United States, followed by Haier, Hisense, Gree, "Frequency Converter cake" has already formed the trend of leading enterprises.

The urban market is becoming the world of high-end refrigerators. Haier's Casa Di, Ronald Evel, U.S. Fan Diluo, Xinfei's Tianzun series refrigerators and Siemens, LG, and Samsung refrigerators stage a confrontational battle. In 2010, the proportion of retail sales of three-door refrigerators and side-by-side refrigerators further increased, reaching 29% and 17%, respectively, and retail sales increased by more than 40% year-on-year.

In kitchen and household appliances and small household appliances, the proportion of retail sales of high-end boutique small appliances has further increased. The annual retail sales of computer-type rice cookers rose to 56%, and the proportion of retail sales of air-conditioner fans in electric fans increased to 38%. The proportion of retail sales of electric kettle increased to 88%, and the proportion of smart electric pressure cooker retail sales increased to 69%.

In 2010, when consumers were buying small home appliances, prices were no longer the main determinant, and consumers began to think more about health, safety, beauty, convenience and practicality. This change in consumer demand makes small boutique appliances a necessity for improving the quality of life.

This year will be the trend of "low before and after high"

In 2011, the home appliance industry will show the trend of “low before and after high”, and the industry growth rate will be 8% to 10%.

From a macro perspective, China’s economic development shifts from investment-driven to consumption-driven. Consumer confidence and policy stimulus have become the macro drivers of industry growth. Under the premise of a stable external environment, the steady growth of the “big market” in the home appliance industry will continue in 2011.

As the growth rate of the entire industry reached a record 18% in 2010, the demand for popular household appliances in China's future consumption will no longer show an explosive growth, and the market growth rate will decline.

In addition, from the perspective of the policy environment, China Yikang expects that the high-speed growth of the entire industry will not be reproduced in 2010 due to factors such as the completion of China's economic “V” type reversal and the slowdown in the real estate market. The growth of China's home appliance market will return to normal in 2011, and the annual growth rate of the industry will be 8% to 10%.

Judging from the trend of the industry, in 2011 the entire home appliance industry will show a trend of “low before and after high”. It is expected that the household appliance industry sales in the first half of 2011 will be in a “slow” state; sales growth will resume in the second half of the year and the industry will return to normal development. In addition, due to the impact of stimulus policies such as home appliance replacement, the focus of home appliance sales in 2011 will still be concentrated in the urban market.