Since this year, the home appliance industry to grasp the internal and external demand market opportunities, steady growth to promote development.
Data show that from January to May, the retail sales of household appliances and audio-visual equipment in units above designated size reached 342.1 billion yuan, up 7% year on year; the sales of major e-commerce platforms increased 81.8% year on year.
The potential for old for new is huge
Recently, Liu Peng, a resident of Changping District, Beijing, came to the Suning store to buy air conditioners.
The summer weather is hot, Liu Peng’s home used more than ten years of air conditioning cabinet refrigeration is not very powerful, noise is also big, in urgent need for new. After selection, he bought a domestic well-known brand 3 cylinder cabinet machine, not only small and delicate space saving, but also is a level of energy efficiency, the old cabinet machine power saving up to 50%. As a result of the Beijing old for new subsidies, superimposed on a variety of preferential manufacturers, the air conditioning at the price of 5220 yuan transaction, a total of 2778 yuan saved.
“This new subsidy is strong, the business to provide the new and drag the old integrated service also save worry and effort, very in line with the needs of office workers like me.”Liu Peng said.
Data show that during the “618″ period this year, Suning store strategy accelerated the landing, driving the overall store customer flow doubled year on year, the old for new orders increased by 46% month-on-month. In the sinking market, Suning’s retail cloud one-stop trade-in orders increased by 75% year on year, air trade-in orders increased by 255%, and sales of embedded refrigerators increased by 152%.
At present, China’s home appliance market has entered the stage of both increment and stock. In 2023, the number of home appliances in major categories in China will exceed 3 billion, and over 100 air conditioners, refrigerators and TVs will exceed 100 units in every 100 households. Some home appliances have been used for a long time and have great potential for replacement.
In March this year, The State Council issued the Action Plan to Promote Large-scale Equipment Renewal and old for New Consumer Goods, and then 14 departments issued the action Plan to Promote old for new Consumer Goods. With the gradual implementation of the policy, a total of about 4 billion yuan of home appliances for new support funds, and 29 places clearly give subsidies for home appliances and home decoration kitchen “refresh”.
Taking Hubei Province as an example, an additional 300 million yuan of financial support funds were added to guide the green and intelligent consumption upgrading of home appliances and homes furnishing. Li Xiaoyan, deputy director of the Hubei Provincial Department of Commerce, said that in-depth research in the process of policy to ensure that the policy is efficient and accurate. First, we will expand the scope of subsidies. From home appliance products to 17 categories of products, including air purifiers and other household products. Second, we will highlight green intelligence. Dishwashers, sweepers and other household appliances representing the new trend of life consumption will be included in the scope of subsidies, and it is clear that all subsidized goods must be grade 2 or above energy efficiency and water efficiency. Third, online and offline linkage. In order to adapt to residents’ different consumption habits, activities are carried out simultaneously on online e-commerce platforms and offline physical stores.
Riding the policy east wind, related industry enterprises active action. Gree Electric Appliances announced an investment of 3 billion yuan to launch a trade-in campaign for new home appliances. Midea Group plans to invest 8 billion yuan to vigorously promote its full brand, all category products of old for new and equipment renewal.
According to preliminary statistics, major home appliance production enterprises, home decoration enterprises, e-commerce platforms plan to invest nearly 20 billion yuan to support the recycling of old machines, product replacement and home decoration. A number of financial institutions have launched home appliances for new consumer loans, interest rate preferential installment loans, credit card payment full reduction and other financial products.
On April 17, Haier Zhijia officially launched the “Green carbon plan”, and through the “hundred cities and thousands of counties” activity for users to send up to 20% renewal subsidies and thousands of technology home appliances. During the “618″ period this year, users participating in Haier’s old for new increased by 104% and sales increased by 88%.
“Although the home appliance market is facing the dilemma of sluggish demand, there are still new development opportunities in the industry under the series of policies of ‘stabilizing the economy and promoting development’.”Zhao Qilin, secretary of the board of directors and chief compliance officer, said that in the first quarter of this year, Sichuan Changhong revenue increased 3.61% year on year, the parent net profit increased 111.77% year on year, to achieve a” good start “, laying a solid foundation for steady business development throughout the year.
Exports have exceeded expectations
Since this year, China’s home appliance export rapid growth. Customs data show that in May 2024, China exported 410 million household appliances, up 29.7% year on year; from January to May, China exported 1.738 billion units, up 24.6% year on year.
For the first half of our country home appliance export performance than expected, China mechanical and electrical products import and export chamber of commerce household appliances branch secretary general Zhou Na analysis, global home appliance market sales this year recovery, Europe and the United States market after the inventory cycle demand rebound, emerging markets sales growth, asean, South America, the Middle East market export continues to improve, superposition of two factors to pull home appliance export growth in China. At the same time, China’s home appliance industry vigorously expand the international market, new projects accelerated, accelerate the launch of new products. In order to avoid related trade protection behavior, the first half of the export of related enterprises became more active.
This year is a big year of sports marketing, and the holding of heavyweight sports events such as the European Cup drives the consumption of large-screen TV. In June, Hisense TV’s market share of 15 percent in Germany, the host country of Euro 2024, hit a record high.
Hisense video related officials said, hisense adhere to high-end sea and research production and marketing localization management, continuous sponsorship euro, World Cup, let overseas consumers quickly understand hisense TV high quality, hisense since the research of two high-end products ULED super TV and laser TV among the mainstream overseas TV sales channels, laser TV has become overseas high-end market hot style products.
The global clean electrical appliances market space is huge, and domestic brands go abroad to expand the sweeping robot, floor washing machine and other emerging category markets. Since its establishment 6 years ago, Tianke brand has achieved leap-forward development with a compound growth rate of 292%. Its sales scale is approaching 10 billion yuan, and its overseas business accounts for 30%.
Leng Ling, CEO of Tianke Intelligent Technology, said that Tianke aims at the high-end positioning when entering overseas markets, etc. In order to make consumers willing to pay, Tianke will do very full market research. Initially, the team learned about overseas consumers by reviewing the “stupid approach” of Amazon stores. This has also become the beginning of the addition from simply focusing on product function evaluation to promoting the integration of product functions with user needs and experience. Facing consumers in different regions, Tim will also carry out localized product research and development and promotion.
Slow and steady play to enhance the momentum
At present, the domestic market of the home appliance industry remains stable, and domestic policies and activities to replace old home appliances and promote the consumption of green home appliances are frequent. However, the real estate market is relatively depressed, consumer confidence still needs to be enhanced, and the new and new demand of home appliances needs to be further activated.
Jiang Feng of executive director of association of Chinese household electrical appliance expresses, according to “safe use fixed number of year of year of household electrical appliance”, the safe use fixed number of year of refrigerator and air conditioning is 10 years, washing machine, water heater, lampblack machine is 8 years. At present, a lot of consumers still have a certain misunderstanding of home appliance products, that as long as there is no bad can be used, as long as it can be repaired do not want to replace. Relevant parties still need to do more work on updating the consumption concept.
“Behind the old appliances for new is not only the economic account, or the environmental account, resource account.”Jiang Feng said that innovative home appliance products and scenario-based solutions can not only bring a better life experience to consumers, but also significantly reduce the security risks caused by the extended service of home appliances, significantly reduce energy consumption, reduce greenhouse gas emissions and resource waste.
The difficulty of recycling waste electrical appliances is also one of the important factors that cause consumers to replace their new consumption. The Action Plan for Promoting the Old Consumer Goods for New Goods clearly proposes to improve the recycling system of waste home appliances, open up the “venous circulation” of waste home appliances recycling, and smooth the renewal and consumption cycle of home appliances. Specific measures include reasonable distribution of recycling outlets, street (township, town) transfer stations and regional sorting centers, and cultivating a number of typical cities and enterprises for recycling renewable resources such as waste home appliances.
In terms of export of China’s home appliance industry, in addition to short-term superimposed factors such as overseas inflation, inventory cycle, local regional conflicts and technical trade barriers, the global industrial chain and supply chain are also facing reshaping.
Jiang Feng said that home appliance enterprises should pay more attention to the flexibility and adaptability of the globalization strategy, and it is imperative to choose appropriate areas to invest and build factories. At the same time, the competitive advantage of the whole industry chain, digital iteration, the continuous cultivation of research and development innovation ability, as well as the continuous penetration of channels and brands, have become an important embodiment of the improvement of its global market influence.
Zhou Nan believes that China’s home appliance industry develops the international market, to strengthen the medium-and long-term growth point of mining. For example, supply chain adjustment and functional innovation drive category growth, and online opportunities of marketing channels promote the development of independent brands.
Looking into the future, Yang Jin, vice chairman and general manager of Sichuan Changhong, said that Sichuan Changhong will firmly grasp the main business and implement “digital transformation” and “AI empowerment”. At the same time, we will further strengthen the “global operation”, and the overseas business will continue to deepen the mainstream market, constantly expand the emerging market, explore the incremental overseas market, and form a domestic and international double cycle development pattern
