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Description

Description

Covered in this report

The large household appliance market, long viewed as conventional and static, is breaking stride with tradition and revolutionizing in response to today’s uncertain market climate. The real estate sector used to be the market’s strongest driving force but has gradually lost momentum and isn’t likely to recover anytime soon. Therefore, the large household appliance market is looking for ways to generate more revenue on its own terms.

The young and single are a rising target segment for the next generation of large household appliance companies. This group of consumers view appliances as an integral component of a home’s decor. Style matters for these younger generations. As this demographic group lacks experience of buying household appliances, they value good customer service and peer reviews as important factors for consideration when purchasing large household appliances.

“The large home appliance market should cater to the needs of different consumer groups. We expect to see more household appliances targeting small families. Young, single consumers value the ability to control large household appliances from the palm of their hands, while older consumers are more concerned about practicality and automation. Smart household appliances are the big trend but there is a large gap between consumers’ expectations of smartness learned from marketing and the everyday smart functions they want in large appliances.”

– Roger Shi, Research Analyst

This report examines the following issues:

  • The young and single are setting new consumer norms
  • TVs going social
  • Smartness is the trend but lacks glamour

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Figure 1: Large household appliance retail value, China 2013-19
            • Figure 2: Best- and worst-case forecast of retail value of large household appliance, China 2014-24
            • Figure 3: Segmentation growth from 2013 to 2019
            • Figure 4: Market share by segmentation
          • Companies and brands
            • Figure 5: Samsung’s customised fridge
            • Figure 6: Smeg in D&G style
            • Figure 7: Marshall fridge
          • The consumer
            • Upgrade vs ownership boost
              • Figure 8: Appliance ownership and willingness to upgrade
            • Energy efficiency and smartness the two main catalysts to purchase
              • Figure 9: Factors to purchase large home appliance
            • Online and offline channels used equally across all city tiers
              • Figure 10: Purchase channel selection, by city tiers
            • Consumers gaining more bargaining power, as good value and smartness are new points of differentiation
              • Figure 11: Attributes associated with each brand
            • Memory function is the leading function wanted in large household appliance
                • Figure 12: Smart functions
              • Four types of consumers
                • Figure 13: Consumer segmentation based on their general attitudes
                • Figure 14: Attitudes towards large household appliance, by consumer segmentation
              • What we think
              • Issues and Insights

                • The young and single are setting new consumer norms
                  • The facts
                    • The implications
                      • TVs going social
                        • The facts
                          • The implications
                            • Smartness is the trend but lacks glamour
                              • The facts
                                • The implications
                                • The Market – What You Need to Know

                                  • The future of large household appliance market is not that gloomy
                                    • Revolution needed to fuel market growth
                                      • Each household appliance category is nuanced in its own right
                                      • Market Size and Forecast

                                        • Housing market is strongly linked with sales of large household appliances
                                          • Figure 15: Large household appliance retail value, China, 2013-19
                                        • Large household appliances gradually shift away from being the industry’s growth momentum
                                          • Figure 16: Large vs small household appliance’s retail value, China, 2014-19
                                        • Large household appliance industry will experience short-term slow growth
                                            • Figure 17: Best- and worst-case forecast of retail value of large household appliance, China 2014-24
                                        • Market Factors

                                          • Consumption upgrade drives home appliance growth
                                            • Figure 18: DAEWOO’S wall-hanging washing machine on Tmall
                                          • Large household appliances getting connected
                                            • Figure 19: Huawei Mobile’s remote control function
                                            • Figure 20: Xiaomi’s internet-enabled air conditioners
                                            • Figure 21: Xiaomi’s internet-enabled air conditioners’ app interface
                                          • Large household appliances shrinking
                                            • Figure 22: The number of marriages and divorces, from 1999 to 2017
                                            • Figure 23: Birth & death rate from 1999 to 2018
                                          • Housing market slowdown is curbing growth rate
                                            • Figure 24: Unit sales in the market from 2009 to 2017
                                        • Market Segmentation

                                          • TV and fridge markets shrinking in size and share
                                            • Figure 25: Segmentation growth from 2013 to 2019
                                            • Figure 26: Market share by segmentation
                                          • Air conditioner market to experience slow growth in the next two years
                                              • Figure 27: Air conditioner’s market size, China, 2013-19
                                              • Figure 28: Best- and worst-case forecast of retail value of air conditioner, China, 2014-24
                                            • TV sector experiencing declining retail value though rate of decline to ease over time
                                              • Figure 29: TV’s market size, China, 2010-19
                                              • Figure 30: Best- and worst-case forecast of retail value of TV, China, 2014-24
                                            • Refrigerators segment is growing due to consumption upgrade
                                              • Figure 31: Retail value and volume of refrigerators, China, 2012-19
                                              • Figure 32: Best- and worst-case forecast of retail value of refrigerators, China 2014-24
                                            • Washing machines boast constant growth as washer dryers and front-loaders are trend-setters
                                              • Figure 33: Market size of washing machines, China 2013-19
                                              • Figure 34: Best- and worst-case forecast of retail value of washing machines, China 2014-24
                                            • Air purifiers’ retail value shrinking but water purifiers and dishwashers set to lead future market growth
                                              • Figure 35: Retail value of others (dishwasher, water and air purifier), China 2013-19
                                              • Figure 36: Best- and worst-case forecast of retail value of dishwasher, water and air purifier, China 2014-24
                                          • Key Players – What You Need to Know

                                            • Technology companies are forcing revolution
                                              • Capturing the young
                                                • It’s all yours
                                                • Competitive Strategies

                                                  • TCL and Xiaomi are helping each other to build competitive advantage
                                                    • Social element of mobiles coming to smart TVs
                                                      • Figure 37: Hisense’s S7
                                                      • Figure 38: HUAWEI’S Honor vision TV
                                                      • Figure 39: TCL XESS’s smart function
                                                      • Figure 40: TCL xess’s delivery service
                                                      • Figure 41: Samsung’s vertical TV, Sero
                                                    • Large appliances companies are targeting young consumers
                                                        • Figure 42: 919 beautiful life festival
                                                        • Figure 43: Mini-movie to debut on 19 September, 2018
                                                        • Figure 44: Leader Appliance’s Weibo post on its celebrity endorsement video
                                                        • Figure 45: Consumers’ interact with celebrities on Tik Tok
                                                    • Who’s Innovating?

                                                      • It’s yours and yours alone
                                                        • Figure 46: Samsung’s customised fridge
                                                      • It’s about style and art
                                                        • Figure 47: Smeg in D&G style
                                                        • Figure 48: Marshall Fridge
                                                    • The Consumer – What You Need to Know

                                                      • Purchase factors
                                                        • Smart functions
                                                          • Consumer segmentation
                                                          • Appliance Ownership and Willingness to Purchase

                                                            • Western-inspired appliances are the next growth driver
                                                                • Figure 49: Appliance ownership, by category
                                                                • Figure 50: Appliance ownership, by Western style
                                                              • Upgrade vs ownership boost
                                                                • Figure 51: Appliance ownership and willingness to upgrade
                                                            • Purchase Factors

                                                              • Energy efficiency and smartness are two main catalysts
                                                                • Figure 52: Factors to purchase large home appliance
                                                              • Brand losing grip on young people while practicality appeals to older consumers
                                                                • Figure 53: Factors to purchase, by generations
                                                              • Information channels influence preference for large home appliance
                                                                  • Figure 54: Home accessories information channel’s influence on purchase factors for large home appliance
                                                              • Purchase Channels

                                                                • JD.com and electric appliance malls are go-to's for consumers
                                                                  • Figure 55: Haier experience centre
                                                                  • Figure 56: Haier experience centre’s interior design
                                                                  • Figure 57: Channels to purchase large household appliance
                                                                • Online and offline channels used equally across all city tiers
                                                                  • Figure 58: Channel selection, by city tiers
                                                                • Age does not play much of a role in channel selection
                                                                    • Figure 59: Channels to purchase large household appliance, by age:
                                                                • Brand Attributes

                                                                  • Consumers gaining more bargaining power, as good value and smartness become new points of differentiation
                                                                    • Figure 60: Attributes associated with each brand
                                                                  • Brands’ customer service strategy can be more effective
                                                                      • Figure 61: Haier’s customer service, by age
                                                                  • Smart Functions

                                                                    • Memory function is the leading function wanted in large household appliances
                                                                        • Figure 62: Smart functions
                                                                      • Age affects how consumers rank smart functions
                                                                        • Figure 63: Smart function desired, by age
                                                                      • Family structure influences how consumers perceive smart functions
                                                                        • Figure 64: Key drivers of purchase influencers, June 2019
                                                                        • Figure 65: Smart function preference, by family structure
                                                                    • Consumer Attitudes

                                                                      • Consumption upgrade is the main battlefield
                                                                        • Premiumisation does not equal high prices
                                                                          • What consumers want from intelligence is not what they need
                                                                              • Figure 66: Consumers’ attitude towards large home appliances
                                                                          • Consumer Segmentation

                                                                            • Four types of consumers
                                                                              • Figure 67: Consumer segmentation based on their general attitudes
                                                                              • Figure 68: Attitudes towards large household appliance, by consumer segmentation
                                                                            • Behaviour and attitudes
                                                                            • Mintropolitan

                                                                              • Younger Mintropolitans desire customer service and easy control
                                                                                • Figure 69: Mintropolitan’s purchase drivers, by age groups
                                                                              • Home decor is now linked with large household appliance purchase
                                                                                • Figure 70: Mintropolitan’s purchase channels, by age groups
                                                                            • Appendix – Market Size and Forecast

                                                                                • Figure 71: Market value of large household appliance, 2013-19
                                                                            • Appendix – Market Segmentation

                                                                                • Figure 72: Market value of large household appliance, 2013-19
                                                                            • Appendix – Methodology and Abbreviations

                                                                              • Methodology
                                                                                • Fan chart forecast
                                                                                  • Abbreviations
                                                                                  • Appendix – Key Driver Analysis

                                                                                      • Interpretation of results
                                                                                        • Figure 73: Key drivers of purchase influencers, June 2019
                                                                                    • Appendix – Cluster Analysis

                                                                                      • Four types of consumers
                                                                                        • Figure 74: Consumer types, by generations
                                                                                        • Figure 75: Consumer groups, by gender
                                                                                        • Figure 76: Consumer groups, by household income
                                                                                        • Figure 77: Consumer groups, by city tiers
                                                                                        • Figure 78: Consumer groups, by living situation
                                                                                        • Figure 79: Consumer groups, by property ownership
                                                                                      • Behaviour and attitudes
                                                                                        • Figure 80: Consumer groups, by home accessories purchase
                                                                                        • Figure 81: Consumer groups, by large household appliance purchase
                                                                                        • Figure 82: Consumer groups. by triggers to purchase home accessory brands
                                                                                        • Figure 83: Consumer groups, by attitude towards smart functions
                                                                                        • Figure 84: Consumer groups, by triggers to purchase large household appliance

                                                                                    This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                    • Market

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                                                                                    • Consumer

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                                                                                    • Brand/Company

                                                                                      Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                    • Data

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