2020
0
China Large Home Appliances Market Report 2020
2020-10-30T03:02:08+00:00
OX990948
4995
126812
[{"name":"Domestic Appliances","url":"https:\/\/store.mintel.com\/industries\/household-home\/domestic-appliances"}]
Report
en_GB
“Brands and retailers should stay positive about COVID-19’s effect on overall industry sales. Consumers’ increased willingness to upgrade their home appliances is expediting the industry’s development towards building more holistic…

China Large Home Appliances Market Report 2020

$ 4,995 (Excl.Tax)

Report Summary

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Large Home Appliances – China market including the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

The large home appliance market, due to COVID-19, is currently
experiencing an even greater decline in retail sales in 2020.
However, a process of consumption upgrade is underway.
Consumers see the home as a reflection of their own personal
aesthetic and are going to put more emphasis on the smart home
concept. Consumers’ willingness to upgrade their large home appliances
has also successfully captured top players’ attention. Gree, in
order to stay competitive in the smart home ecosystem.

Expert analysis from a specialist in the field

Written by Roger Shi, a leading analyst in the Household sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Brands and retailers should stay positive about COVID-19’s effect on overall industry sales. Consumers’ increased willingness to upgrade their home appliances is expediting the industry’s development towards building more holistic smart home ecosystems. There is potential for lower tier markets with the growing demand for product upgrades with more functions and better design.
Roger Shi
Household Analyst

Table of Contents

  1. Overview

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

          • Impact of COVID-19 on large home appliances
            • Figure 1: Impact of COVID-19 on large home appliance industry, August 2020
          • The market
            • Housing market is strongly linked with large home appliance purchases
              • Smart home ecosystem is new future
                • Companies and brands
                  • Smart home ecosystem to become a cash cow for large home appliance makers
                    • Live streaming and other online channels will be more popular
                      • The consumer
                        • More interest in upgraded large home appliances
                          • Figure 2: Consumers’ willingness to change major domestic appliances among owners, June 2019 vs August 2020
                        • Energy efficiency is the top priority
                          • Figure 3: Purchase factors consumers consider when choosing large home appliances, August 2020
                        • JD becomes more dominant
                          • Figure 4: Purchase channels for large home appliance buyers, August 2020
                        • HD screens signify premium TVs
                          • Figure 5: Features that consumers will pay more for, August 2020
                        • Dedicated fridge compartments desired
                          • Figure 6: Functions that consumers will pay more for, August 2020
                        • Smartness and multi-functionality prevail
                          • Figure 7: Concepts used to define premium large home appliances, August 2020
                        • What we think
                        • Issues and Insights

                          • Consumption upgrade drives market growth despite COVID-19
                            • The facts
                              • The implications
                                • Target residents in tier three and lower cities with more focus on functionality and design
                                  • The facts
                                    • The implications
                                      • Women will be the future trend drivers of major domestic appliance purchases
                                        • The facts
                                          • The implications
                                          • The Market – What You Need to Know

                                            • Large home appliance sales linked to housing market
                                              • Smart home ecosystem is the next battlefield
                                                • Fridge sales suffer the least from COVID-19
                                                • Market Size and Forecast

                                                  • Area of residential housing sold correlates strongly with large home appliance market
                                                    • Figure 8: Total China retail sales and forecast of Large Home Appliance, at current prices, 2015-25
                                                    • Figure 9: Market factors for large home appliance market, 2015-20
                                                • Market Factors

                                                  • Consumption upgrade driving market premiumization
                                                    • Central and regional governments using stimulus to promote sales
                                                      • Establishing smart home ecosystems is new growth engine
                                                      • Market Segmentation

                                                        • Air conditioners the biggest segmentation in large home appliances
                                                          • Figure 10: Market share of large home appliances, China, 2020
                                                        • Fridges
                                                          • Figure 11: Retail sales of Fridges, China 2017-20
                                                          • Figure 12: Price per unit of fridges, China, 2017-20
                                                        • Washing machines
                                                          • Figure 13: Retail sales of washing machines, China 2017-20
                                                        • TVs
                                                          • Figure 14: Retail sales of TVs, 2017-2020
                                                          • Figure 15: Price per unit of TVs, China 2017-20
                                                        • Air conditioners
                                                          • Figure 16: Retail sales of air conditioners, 2017-2020
                                                      • Key Players – What You Need to Know

                                                        • Brands with strong ecosystem win despite COVID-19
                                                          • Health is the focus while live streaming is the ideal channel
                                                            • Building a strong smart home ecosystem is paramount
                                                            • Performance of Top Players

                                                              • Gree swiftly adapts
                                                                • Haier is transforming from an appliance maker into a “scenario maker”
                                                                  • Midea suffers the least from COVID-19
                                                                    • Xiaomi’s ecosystem expanded
                                                                    • Competitive Strategies

                                                                      • IoT is the main theme of development in home appliances
                                                                        • Live streaming is the ideal channel to rebound sales
                                                                          • Figure 17: TV anchors selling home appliances via live streaming, May 2020
                                                                        • Home as a whole
                                                                          • Function with emphasis on health
                                                                            • 5G deepens the concept of connectivity
                                                                            • Who’s Innovating?

                                                                              • Specialist home appliances support consumers’ needs
                                                                                • Figure 18: AirDresser by Samsung, September 2020
                                                                              • TVs’ ambition to become the centre of smart home ecosystem
                                                                                • Figure 19: LG’s NanoCell TV, September 2020
                                                                              • Air conditioner manufacturers are becoming more health-oriented
                                                                                • Figure 20: AUCMA’s AI air conditioner, August 2020
                                                                              • Refrigerators become more accessible and entertaining
                                                                                • Figure 21: Family hub SpaceMax fridge, August 2020
                                                                            • The Consumer – What You Need to Know

                                                                              • Upgrading of major domestic appliances is becoming more evident
                                                                                • Energy efficiency and good after-sales service matter
                                                                                  • JD is more dominant
                                                                                    • TVs are all about HD screens
                                                                                      • More specific compartments for fridges
                                                                                        • Smartness and multi-functionality are both important
                                                                                        • Ownership and Upgrade Intention

                                                                                          • Consumers’ willingness to change major domestic appliances has generally increased
                                                                                            • Figure 22: Consumers’ willing to change major domestic appliances among owners, June 2019 vs August 2020
                                                                                          • Consumers in tier one cities more likely to change their domestic home appliances
                                                                                            • Figure 23: Consumers’ willingness to change TVs, fridges, washing machines and air conditioners, by city tiers, August 2020
                                                                                          • High-income consumers are more likely to update their major domestic appliances
                                                                                            • Figure 24: Consumers’ willingness to purchase TVs, fridges, washing machines and air conditioners, by monthly household income, August 2020
                                                                                          • Home size is generally a good indicator of how willing consumers are to change their major home appliances
                                                                                            • Figure 25: Consumers’ willingness to purchase TVs, fridges, washing machines and air conditioners, by home size, August 2020
                                                                                          • Consumers’ attitude towards washing machines varies by region
                                                                                            • Figure 26: Consumers’ ownership of washing machines, by regions, August 2020
                                                                                        • Purchase Influencers

                                                                                          • Price is not the top priority
                                                                                            • Figure 27: Purchase factors consumers consider when choosing large home appliances, August 2020
                                                                                          • Men and women have different focal points
                                                                                            • Figure 28: Selected purchase factors when buying large home appliances, by gender, August 2020
                                                                                          • Younger consumers are less inclined to care about energy efficiency
                                                                                            • Figure 29: Selected purchase factors when buying large home appliances, by age, August 2020
                                                                                          • Premiumization taking place in the high-income group
                                                                                            • Figure 30: Selected purchase factors when buying large home appliances, by household income, August 2020
                                                                                          • Premiumization in parents with young kids
                                                                                            • Figure 31: Selected factors when buying large home appliances, by family structure, August 2020
                                                                                        • Purchase Channel

                                                                                          • JD leads the overall market
                                                                                            • Figure 32: Purchase channels for large home appliance buyers, June 2019 vs August 2020
                                                                                          • Online and offline boundaries disappearing
                                                                                            • Figure 33: Purchase factors by online or offline buyers, August 2020
                                                                                          • Home furnishing malls could be a very strategic channel
                                                                                            • Figure 34: Selected purchase channel, by gender, age, monthly household income and city tier, August 2020
                                                                                          • Family structure determines consumer willingness to visit offline stores
                                                                                            • Figure 35: Selected purchase channel, by family structure, August 2020
                                                                                        • TV Upgrade

                                                                                          • Most important factors when purchasing TVs are HD screen and sound system
                                                                                            • Figure 36: Features that will encourage consumers to pay more for a TV, August 2020
                                                                                          • Males are more technical while women care more about social aspect of TVs
                                                                                            • Figure 37: TV features that consumers want, by gender, August 2020
                                                                                          • Families with high household income prefer better screens
                                                                                            • Figure 38: Selected features that would encourage consumers to pay more for a TV, by monthly household income, August 2020
                                                                                          • Age difference is key to differentiate how brands should attract consumers
                                                                                            • Figure 39: Selected features that would encourage consumers to pay more for a TV, by generations, August 2020
                                                                                        • Fridge Design

                                                                                          • More designated compartments demanded
                                                                                            • Figure 40: Functions that consumers will pay more for, August 2020
                                                                                          • Younger consumers want fridges with minimalist design
                                                                                            • Figure 41: Selected features that would encourage consumers to pay more for a fridge, by age, August 2020
                                                                                          • Monthly household income influences interests
                                                                                            • Figure 42: Selected functions or design, by monthly household income, August 2020
                                                                                        • Concept of Premium

                                                                                          • Smart and multi-functionality are more associated with premium large home appliances
                                                                                            • Figure 43: Concepts used to define premium large home appliances, August 2020
                                                                                          • Premium smart home appliances are more than just being smart
                                                                                            • Figure 44: Concepts used to define premium large home appliances, by monthly household income, August 2020
                                                                                          • Younger women prefer multi-functionality
                                                                                            • Figure 45: Concepts used to define premium large home appliances, by age & gender, August 2020
                                                                                          • City tiers determine how consumers see functionality
                                                                                            • Figure 46: Concepts used to define premium large home appliances, by city tiers, August 2020
                                                                                          • Home size makes a difference in the concept of premium
                                                                                            • Figure 47: Concepts used to define premium large home appliances, by city tiers, August 2020
                                                                                        • Meet the Mintropolitans

                                                                                          • Non-MinTs still fancy traditional offline channels
                                                                                            • Figure 48: Channels for large home appliance purchase, by consumer classification, August 2020
                                                                                          • MinTs are more into functionality
                                                                                            • Figure 49: Channels for large home appliance purchase, by consumer classification, August 2020
                                                                                        • Appendix – Methodology and Abbreviations

                                                                                          • Methodology
                                                                                            • Abbreviations

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