On April 26th, under the guidance of the China Household Electrical Appliances Association and the Ministry of Information and Industry Development of the National Information Center, the “Water and Language Future - 2018 China Water Heater Industry Summit Forum” hosted by China National Grid was held in Beijing, AO Smith, Casa. Emperor, Galanz, Haier, Marshal, Four Seasons Mu Ge, Midea, Canpower, Linne, Shuaikang, Sakura, Vantage, Vanward, Wanjiale and other leading brands of water heaters in the domestic market participated in the conference with Jingdong Electronics, a channel supplier, to discuss the current status of the water heater industry in China. Looking forward to the development trend in the future, we will exchange and discuss topics that are of common concern to consumers and the industry. During the conference, Jingdong Electric Appliance Co., Ltd. jointly created a 2018 Jingdong Water Heater Festival jointly launched by several major water heater brands.
meeting venue
As a typical post-property cycle industry, the water heater industry has also been affected in the country’s continuous oversight of real estate regulation. Market growth has slowed down, but consumption upgrades, which are more stable and lasting than real estate, have supported the industry. Confidence in the future development - The water heater industry is expected to grow into the next industry segment of the home appliance industry that has exceeded 100 billion.
The water heater market is opening to a good start. The year is expected to achieve double-digit growth
In 2017, the government insisted that 'houses are used to live, rather than being used for speculation', to strengthen the regulation of the real estate market and effectively control the overheated investment in the real estate market. The cooling of the real estate market has further weakened the pull of home appliances sales. Affected new demands in the household appliances market. Water heaters, which are more intuitively influenced by the real estate market, have a certain degree of restraint in market demand under the conduction effect of the real estate market regulation.
According to the total data from Owei Cloud Network, in 2017, China’s water heaters (electric storage water heaters, electric instant water heaters, gas water heaters, solar water heaters, and air energy water heaters, the same below) had sales volume of 44.094 million units, The year-on-year decline was 3.2%; the sales volume was 79.38 billion yuan, a year-on-year increase of 5.8%, which was lower than the 13.5% retail sales growth of the water heater industry in 2016.
In the first quarter of this year, the water heater industry was once again experiencing growth pressure in the first and second-tier markets that the country mainly regulated. According to data from the National Information Center, sales of water heaters in major domestic cities declined in the first quarter of 2018, with sales of gas water heaters falling by 3.21% year-on-year. Water heater sales fell 6.62% year-on-year.
In spite of this, the industry relied on the upgrading of product structure in the primary and secondary markets, the release of demand in the 3rd and 4th markets, and the pulling role of e-commerce, and still delivered a good transcript. In the first quarter of 2018, the retail sales volume of China's water heater market was 18 billion yuan, a year-on-year increase of 8.8%.
Owe Cloud Network Vice President Guo Meide
According to Guo Meide, vice president of Aowei Cloud Network, although the home appliance industry is closely related to real estate, the demand for replacement and upgrade of the water heater industry is still considerable. Therefore, in 2018, the open water heater market has maintained a not-too-low growth rate.
Looking forward to 2018, although still facing the negative factors of real estate market regulation, both water heater manufacturing companies and related market research institutions generally have confidence in the 2018 water heater market.
Cai Ying, Senior Industry Expert, National Information Center
Cai Ying, senior industry expert at the National Information Center, stated that the growth of the real estate market in Central China, South China and Southwest China, the development of the regional economy and the gradual formation of the urban agglomeration, the construction of featured towns, and the transfer of manufacturing industries will affect the product category structure. And regional market changes.
In 2018, there was also a series of positive effects on the water heater industry at the macro-policy level. This year's “Government Work Report” clearly proposes to start a new three-year shed rehabilitation and toughening plan. This year it will start 5.8 million units. The report also proposes to improve new models. The quality of urbanization, this year it has settled in the city to 13 million people and vigorously implemented the strategy of village rejuvenation. For the water heater industry, this also means that there is a huge demand for new water heaters. Not only that, the Chinese government has introduced shared housing and public housing. Rental policy is also expected to expand the market size of water heater engineering.
With the continuous expansion of the real estate decoration market, its role in the sales of home appliances such as water heaters is becoming more and more apparent. According to the monitoring data of Owing Cloud Network, there are 1,293 newly opened projects in 2017 in China, with an overall market size of 127.4. Millions of units, an increase of 9.9% year-on-year. The proportion of home improvement and decoration markets has been continuously increasing. This is also worth paying more attention to the water heater industry.
Cai Ying predicts that the domestic water heater market will still maintain a relatively stable growth in 2018. Guo Meide also believes that for the water heater industry, there is still a “coal-to-gas” policy dividend, high growth rates in the third and fourth-tier markets, and a low base for the same period. As a result, the water heater market is still at a stage of steady growth.
According to Ovid Cloud Network's forecast, the overall performance of China's water heater market will be better than last year in 2018. Market sales may decline by 1.8% to 44.291 million units, but sales are expected to increase by 10.2%. The overall scale will reach 87.43 billion yuan.
Demand-side consumption upgrade is unstoppable
To support the water heater industry's confidence in the market growth, in addition to the above external factors, more is the driving force from within the industry.
Xu Dongsheng, Vice Chairman of China Household Electrical Appliances Association
Xu Dongsheng, deputy director of the China Household Electrical Appliances Association, said that in 2017, a notable feature of the water heater industry was that industrial upgrading was further accelerated. Overall, health, comfort, large capacity/big rise, constant temperature, and zero-cold water became the development trend of water heater products. 1. In the secondary market, as the level of consumer spending continues to increase, the water heater market has shifted from popular consumption to comfortable consumption.
It is precisely under the impetus of consumption upgrade that the water heater product structure of our country continues to develop towards the high-end trend. According to the Ove Cloud Network monitoring data, in the first quarter of this year, no matter whether it is an electric water heater or a gas water heater, obvious Prices rose, the price of electric heating water heaters over RMB 2,500 and the share of gas water heaters rose above RMB 3,000. In the electric water heater market, 51L-60L products accounted for half of the country; 13L water output products gradually became the mainstream of gas-fired water heaters, and 16L or more Water output surged rapidly.
Online market, water heaters also showed a clear trend in product structure upgrade. Jingdong appliance data show that in the first quarter of 2018, the overall growth rate of Jingdong platform water heater sales reached 37.7%, large-scale electric water heaters, gas water heaters out of water become mainstream, online The average unit price keeps rising.
Due to the advancement of the West-East Gas Pipeline Project, natural gas infrastructure has been continuously improved and the implementation of policies such as 'coal to gas' has led to the rapid rise of gas water heaters. In 2017, the retail sales of gas water heaters surpassed that of electric storage water heaters for the first time, becoming a market share. The largest water heater category. At present, gas water heater has become the focus of the industry's category.
However, Xu Dongsheng stated that China's market demand is complex and diverse. Especially in the 4th and 5th markets and township markets, gas water heaters cannot completely replace electric water heaters. In addition, the mainstream brands in the industry are implementing smart, health and design on electric water heaters. On the innovation, coupled with continued sinking channel advantages, electric water heaters will remain relatively stable in the future.
In addition, gas boilers and air-to-energy water heaters, both of which are in the lead-in category, have huge market gaps and good prospects. In particular, the gas boilers that integrate domestic hot water and heating functions have become a national coal-to-gas reform policy. The favorable conditions and the promotion of consumer spending along the Yangtze River region have ushered in rapid growth. According to industry estimates, the market size of gas boilers in China is expected to be around 4.5 million units in 2017. The rise of gas boilers and air-energy water heaters is also a water heater. The industry provides new incremental markets.
China National Grid Editor-in-Chief Lu Shenghua
China National Grid Editor-in-Chief Lu Shenghua believes that consumption popularization and consumption upgrades exist in different levels of the market at the same time. In the popular market, reliable, cost-effective and affordable products are needed. In the consumer upgrade market, health and comfort-oriented middle-to-high end are needed. Products. In his opinion, consumers ultimately need 'hot water' instead of water heaters, and the industry should strengthen the 'water solution' concept, disseminate domestic water security to consumers, soften water and health, and 'central hot water system'. ' Other aspects of knowledge. In addition, in a second-tier cities, 'bath culture' initially formed, water heater companies should be disseminated to consumers, advocate the concept of comfortable consumption.
Famous interior designer Song Xinlei
The well-known interior designer Song Xinlei provided suggestions on the development of water heaters from the perspective of interior design. Consumers are increasingly demanding in heating, energy conservation, water purification, design, and rational layout. Water heater companies should pay attention Product footprint and functional and safety design.
Xu Dongsheng pointed out that water heater manufacturers should have an insight into the various changes in the consumer market, more focused on the individual needs of consumers and different usage scenarios, seize the pain point of consumption, carry out product innovation and service upgrades.
The supply side deepens structural reforms to meet the needs of consumers for a better life
In the face of changes in the consumer market of water heaters, water heater companies have stepped up product R&D efforts and achieved continuous growth through the optimization of product supply.
The person in charge of Haier’s water heater business stated that Haier’s water heaters focus on the global safe water expert positioning, focusing on user needs, while continuously deepening the safety system construction, while constantly satisfying the needs of users for differentiating, electric water heaters focusing on fast-speed, healthy, gas water heaters Focus security, constant temperature, air can focus two high and two low (high water temperature, high COP value, low temperature operation, low noise), solar is focused on the tablet one machine.
The relevant person in charge of Midea Group's water heater business department stated that in 2018, the overall idea of Midea Water Heater is to continue to promote 'healthy living water and zero cold water' on the terminal, to provide users with better products and experience through innovative products; in the channel, It is an active channel sinking, allowing consumers to enter the town into the town can also see the beauty of the store.
'In the past 20 years since its entry into China, AO Smith has improved the quality of life of Chinese consumers through leading technology, high-quality products, and improved services. It has also brought together solutions for hot water, heating, water treatment, air purification, beauty soft water and other integrated systems. In the future, AO Smith always adheres to the concept and attitude of bringing better products to users, and continues to create innovative products that are more suitable for Chinese consumers. 'The relevant person in charge of Iowa Smith (China) Water Heater Co., Ltd. said.
'All along, the outlet water temperature is not constant, hot and cold is a major pain point for gas water heater users, Linne uses advanced 3C constant temperature system control technology to solve the gas water heater water temperature instability in the industry issues. 'Shanghai Linne Co., Ltd. business headquarters marketing Yu Wei, director of the Department of Product Planning, stated that Linnei will continue to focus on R&D of gas appliances and continue to create products that lead consumer demand, hoping to bring even more extreme user experiences to users.
Su Yihong, Director of the Planning Department of Cherry Blossom (China) Co., Ltd., said that this year, Sakura will comprehensively sort out the essential relationships among users, products, and scene requirements, build up deeper and more realistic cognition and insights, and seize the consumption upgrade belt. New opportunities to further strengthen the product's intelligence to achieve 'to guide consumers to manufacturing'.
In the first quarter of 2018, the sales of Vantage water heaters increased by 50% year-on-year. 'The relevant person in charge of Vantage's water heater business said that Vantage will promote gas water heater technology upgrades in terms of comfort, safety and energy efficiency.
Relevant person in charge of the Macro Water heater business said that Macro will follow the consumer upgrade trend, increase the development of intelligent technology, and form an integrated water system solution through intelligent technology.
'Gas water heater is the core business of Wanhe, Wanhe's strategy is to always stay ahead in this industry. We now focus on the two major directions of product development, safety and comfort.' Wanhe water heater business related to the person said.
In addition to the many efforts made by water heater manufacturers to meet consumer demand, channel companies are also focusing on channel sinking and product structure upgrades to help the water heater industry.
Jingdong Group, Director of Operations, Department of Home Appliances Marketing, Zhang Jing
Jingdong Group, Director of Operations, Department of Home Appliances Marketing, Zhang Jing It said that with the implementation of the Jingdong Bang and store channel sinking policy, Jingdong water heater sales have been flourishing in rural areas throughout the country. As of now, Jingdong Store has opened 8,000 stores, and in 2018 Jingdong Home Appliances plans to open 15,000 stores, covering the entire country. 100% county seat.
2018 Jingdong Water Heater Festival started
During the forum, Jingdong Home Appliances co-launched a number of major water heater companies to jointly launch the 2018 Jingdong Water Heater Festival. This time the theme is 'Quality Purchase'. From April 25 to May 2, Jingdong Home Appliances and Brand Enterprises will jointly create a quality of life. The concept of consumption, with high-end, light luxury, and intelligent concepts ignited the market, and promoted the upgrading of product structure. In addition, during the 2018 Jingdong Water Heater Festival, JD.com's home appliances will also cooperate with the brand to upgrade the water heater installation service again – '0'.
Lv Shenghua said that with the mass production of water heaters for home appliances going to the countryside, the urbanization process continues to advance, and the continuous increase in the market size of water heaters has also attracted more brands. The 'shanzhai' and 'no brands' are still small. The market space, in addition to government departments to strengthen market supervision, the industry to enhance the intensity of competition, to speed up the survival of the fittest is also essential.
Xu Dongsheng stressed that water heater companies should fulfill the mission of satisfying people's desire for a better life, continuously optimize product performance, accelerate technological transformation and upgrade of the water heater industry through technological innovation, and promote sound development of the water heater industry.