In China's water heater industry, gas water heaters have enjoyed a star-like halo thanks to their double-digit growth for many years, the government's 'coal-to-gas' policy and the continuous advancement of natural gas pipelines throughout the country. In contrast, electric water heaters have Far more than gas water heaters but the market growth rate is much less.
2018 Water Heater Industry Summit Forum
On April 26th, under the guidance of the Informatization and Industry Development Department of the China Household Electrical Appliances Association and the National Information Center, during the 2018 Water Heater Industry Zhige Future New Thought Symposium sponsored by the State Grid and the 2018 China Water Heater Industry Summit Forum, The debate 'has become a topic of wide discussion among water heater companies on the spot. Regarding the industry's 'burn-in-retreat' argument, participating companies believe that: Electric water heaters will not be replaced by gas water heaters, whether in the incremental water heater industry Or the stock market, there is still a lot of room for development.
The eye-catching gas water heater market
In recent years, gas-fired water heaters have maintained a rapid growth momentum in China. Under the situation that the growth rate of the electric water heater market is gradually slowing, the role of gas-fired water heaters in promoting the continuous expansion of the overall water heater market is becoming increasingly apparent. With the emergence of this situation, The topic of 'fuel battles' within the water heater industry is also mentioned from time to time.
The single appearance design of electric water heaters requires large installation space, and congenital defects such as long waiting time for hot water in the process, which makes consumers in the urban market who pay more and more attention to home design and user experience consider more when replacing water heaters. Gas fired water heaters, especially electric water heater liners, which are exposed to the long-term accumulation of scale and cannot be cleaned out, have caused some consumers to tend to buy gas water heaters when the product is replaced.
According to the total data from Ove Cloud Network, in 2017, the overall sales volume of China's water heaters (electric storage water heaters, electric instant water heaters, gas water heaters, solar water heaters, and air energy water heaters) totaled 44.049 million units, a year-on-year decline of 3.2%; Amount of 79.38 billion yuan, an increase of 5.8%. Among them, the overall decline in the size of solar water heaters; air-energy water heater despite considerable growth, but the base is still small; gas water heater and electric storage water heater is still the largest proportion of the two subdivisions In terms of categories, sales of gas water heaters totaled 15.808 million units, up 5.3% year-on-year, sales reached 34.27 billion yuan, an increase of 14.7% year-on-year, sales of electric storage and water heaters 23.31 million units, a year-on-year decrease of 5.8%, and sales of 32.74 billion yuan, a slight increase of 0.3% year-on-year. %.
'Gas water heaters have advantages such as energy saving and comfort, higher profits, rapid growth under the influence of manufacturers' promotion and improvement of gas pipeline network facilities, and are rapidly becoming the dominant category in the T1-T3 market,' said Guo Meide, vice president of Ovid Cloud Network. .
In 2017, the sales of gas water heaters surpassed that of electric storage water heaters for the first time. In terms of sales, they accounted for half of the market for water heaters. In the face of the good growth momentum of gas water heaters, various water heater companies have increased their demand for gas water heaters. Investment and product development efforts, Weibo and other companies starting with electric water heaters, have also entered the field of gas water heaters.
According to Yu Wei, Head of Marketing and Commodity Planning Department of Shanghai Linnei's Sales Division, following the start of production of the Phase I project of Linxian Industrial Park in Shanghai in March 2017, Shanghai Linne will also invest in Phase II and Phase III projects in the near future. After construction, the production capacity of Linnei Gas Water Heater will be further improved after it is put into production.
In the process of continuous expansion of the market scale, the gas water heater industry has also ushered in a new force, including the German brand Bosch Thermotechnology, which is famous for its industrial and commercial heating equipment and solutions in the Chinese market, with gas boilers and heating systems in China. The Korean company Kyung Nai Bian, who has been a fortune-knowing company, especially on the online channel, has seen a large number of brand influxes that have led to a substantial increase in the overall number of brands in the gas water heater market.
According to the Ove Cloud Network omni-channel monitoring data, the number of channel brands under the gas water heater market in China in 2017 was 120, which was a decrease of 6 compared to 2016, and the number of online channel brands was 147, an increase of 36 over 2016; In 2017, the number of channel brands under the market of electric water heaters decreased by 3 compared with the previous year, and 19 new brands were added to online channels. The number of new brands of gas water heaters in 2017 significantly exceeded the number of new brands of electric water heaters.
Water heater industry 'fuel battle'
In the face of changes in the product structure and industry trends of the entire water heater market, consumers should buy electric water heaters or buy gas water heaters. The prospects for the development of gas water heaters and electric water heaters are more optimistic. Different water heater companies have different opinions. Evolution of the water heater industry's 'fuel battle'.
'From the perspective of energy, from an economic point of view, after all, electricity is a secondary energy source, and gas is a primary energy source. In terms of cost of use, most areas are gas cheaper,' said Liu Guoqing, director of Vantage Water Heater Sales Center, who believes that Gas water heaters will be used more widely in the future.
According to Li Guangbin, director of Wanhe New Electrical Product Planning, gas water heaters have the advantages of 'multiple, fast, good, and provincial'. They can quickly and continuously produce hot water, the water heater itself is small in size, and it is a very efficient energy conversion. Equipment, secondary energy conversion rate can reach 90%, which is the advantage of gas water heaters.
Zhang Yan, Head of Marketing of China National Investment (China) Investment Co., Ltd., believes that with the introduction of natural gas from the West to the East, including the introduction of Russian natural gas, the use of gas energy in the living sector is increasing, and data from the water heater industry shows that The proportion of electric water heaters was higher than that of gas water heaters. The proportion of gas water heaters and electric water heaters in these two years has almost reached 1 to 1. In the near future, the proportion of gas water heaters is definitely higher than that of electric water heaters. From the comfort of consumers At this stage, gas water heaters have almost solved some of the pain points in the use of hot water for users. Therefore, in her view, 'gas water heaters are certainly getting better and better in the future.'
Sheng Baojing, general manager of Haier Electric Water Heater Industry, confessed that gas water heaters have both favorable external environment and their own advantages. In particular, from the perspective of the current real estate decoration design guidance, they are also beneficial to the development of gas products. However, in his view As long as electric water heaters find suitable opportunities, growth points, even if the government strengthens regulation of the real estate market, it will not cause too much impact on the electric water heater industry.
In the first quarter of this year, continued tightening of real estate control policies in the first- and second-tier markets caused new demand in the downstream water heater industry to be curbed and the entire industry was under pressure to grow. The National Information Center data showed that sales of water heaters in the key cities of China experienced a negative growth in the first quarter. The sales of gas water heaters and electric storage water heaters fell 3.21% and 6.62% respectively year-on-year.
'Electrothermal products have strong adaptability, outstanding price advantages, and high consumer awareness. At all levels of the market, especially the T3-T5 market is rapidly replacing solar energy products,' said Guo Meide.
Sheng Baojing also believes that the rural market in rural areas is the market that the electric water heater industry should focus on. “Now the solar energy is gradually withdrawing from the inside. The heat pump is too expensive. Rural rural areas can’t afford it. Gas can't go. This is a very important battlefield for electric water heaters. . '
It is too early to talk about 'burning into electricity'
Although in recent years the gas-fired water heater's limelight has overshadowed the momentum of electric water heaters, it is still premature to make a 'burn-in-retreat' conclusion.
Xu Dongsheng, Vice Chairman of China Household Electrical Appliances Association
Xu Dongsheng, deputy director of the China Household Electrical Appliances Association, said 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 have adopted intelligent electric water heater products. Health and design innovations, coupled with continued sinking channel advantages, electric water heaters will remain relatively stable in the future.
While focusing on the incremental market, water heater companies have also given water heaters more user-friendly features and stylish designs through technological innovations to meet users’ expectations for health and comfortable bathing water experience. Haier’s instant thermal protection Wall water heater Plus9, unique instantaneous hot waterfall wash, anti-fouling net washing, anti-electric wall 3.0, cloud SMART2.0 smart technology and shell shaped design and other black technology, solve the electric water heater industry is difficult to solve the slow heating, low water volume , dirty wash, not connected, many users of the white bucket pain points. AO Smith's latest replacement magnesium rod thin type 'Kigui Liner' electric water heater, using thin technology to subvert the appearance of electric water heater, the whole thin to 28cm , Elegant white appearance, waterway hidden design, so that electric water heater can also be perfectly integrated into modern bathroom decoration style.
Lian Xiaojing, Manager of Hot Water Appliances, Midea Water Heater Division, said, “In recent years, the United States’ electric water heaters have been pushing out the “bathing out of the living water” and the market acceptance is relatively high. Next, we are still upgrading in the direction of health, to the consumer. Bring a better bathing experience. '
Although electric water heaters have continued to expand due to their own base number and the impact of gas water heaters and real estate regulation, the market has shown a trend of slower growth. However, the upgrading of consumption, the granting of new technologies, and the tremendous growth potential of rural township markets still allow Electric water heater market is full of imagination, even Wanhe, Wanjiale, Vantage and other gas water heaters business accounted for the bulk of the water heater companies, also intends to have a greater role in the electric water heater market. Wanjiale clearly stated that its strategy in the water heater business It is 'stronger heat, bigger electric heat'. Wanhe Electric Co., Ltd., a joint venture with Bosch Thermotechnology, is expected to carry out cooperation in the field of electric water heaters.
In fact, the current water heater industry is gradually forming a consensus: Compared to providing consumers with simple water heater hardware, water heater companies prefer to provide users with domestic water solutions.
'It's very difficult to simply talk about gas water heaters or electric water heaters,' said Liu Zhenggen, general manager of the Wanjiale Hot Water Division. Consumers need hot water, not water heaters. Whether they are electric water heaters or gas water heaters, they are just water temperature, water volume. , The combination of water quality. In his opinion, the water heater company can match the consumer's environment and provide him with a good bathing life. The water temperature, water volume and water quality meet the requirements.
Sheng Baojing also stated that Haier pursues customer needs as the core and has always advocated tailoring a solution for consumers based on the needs of consumers.
Xu Dongsheng pointed out that the water heater company should fulfill the mission of satisfying people's desire for a better life, continuously optimize product performance, accelerate technological transformation and upgrading of the water heater industry through technological innovation, and promote sound development of the water heater industry.