From the point of view of the global Western-style small home appliance market, it has gradually moved eastwards since the 1980s and gradually formed the emerging production regions for home appliances in East Asia, Eastern Europe, and Latin America. China took advantage of its cost, scale, and technical support to take advantage of the global market. Major orders for small household appliances. In addition to the rapid increase in the export volume of small household appliances in China, the proportion of high-end refined products is also increasing. This shows that the competitiveness of Chinese-made small household appliances in the international market continues to increase.
At present, the European market imports Western-style small household appliances from China by about 40% to 45% of its imports; the United States imports from China about 70-75% of its imports, Canada accounts for about 50% of its imports, and Japan accounts for about More than 80% of its import value, Europe and the United States and other developed countries and regions rely on small household appliances consumption made in China.
Thanks to the changes in the pattern of international division of labor during the reform and opening up period, China’s small home appliance manufacturing companies have gone through more than ten years from the foundry industry, relying on China’s inherent advantages in labor force, land, energy, preferential policies, industrial support, and talent concentration. Development has made great progress in production, R&D, and design. Now it has the foundation for ODM and even OBM.
At present, the average number of household appliances owned by small households in China is far lower than that in Europe and the United States. With the increase in income levels of Chinese residents, there is a huge potential for growth in the small household appliances market in China. It can be predicted that the next 10 to 20 years will be a golden period for the development of small household appliances.
Small household appliances account for up to 15%-30% of profit is becoming a new profit growth point for the home appliance industry. Many large home appliance giants have entered the field of small household appliances. Overall, there are numerous small household appliance industry competitors, small scale, and fierce market competition. , The industry is faced with reshuffling, and the strength of leading enterprises will be further consolidated.
Forward-looking Industry Research Institute released the "Western Small Household Appliance Industry Market Demand and Investment Planning Analysis Report" analysis predicts that the demand for Western-style small household appliances will grow steadily in the international market, and the domestic market will also expand steadily. It is predicted that the foreign market demand will be in 2023. To reach about 2.1 billion units, domestic demand is expected to reach 300 million units in 2023.
Forecast of Domestic and Foreign Demand for Western-style Small Domestic Appliances in 2018-2023 (Unit: Billion Units)
Source: Forward-looking Industry Research Institute
Analysis of Development Trend of Small Western Home Appliance Industry
I. Forecast of Future Development Trends in Foreign Markets
From the European and American markets, the average household has more than 30 small household appliances. The market has large capacity and a short life cycle. Interestingness and fashion make the market for small household appliances exchange demand huge. At present, Philips has its own factory. All of the world's brands purchase products through OEM/ODM, and they are only doing branding and marketing promotion, while China has comparative advantages and become a manufacturing base for these small household appliances. According to forecast, foreign markets are expected to have 1.7 billion units in 2018. Demand, and export prices will continue to rise steadily, so Chinese small household appliance manufacturers, especially those that have established strong customer relationships and quality advantages, will receive a large number of OEM/ODM orders. With strong ability to select large customers and product pricing.
Second, the forecast of the future development trend of the domestic market
The domestic market is a market with huge potential for western-style small household appliances companies. First, with the prevalence of European and American cultures in Eastern countries, Western-style small household appliances are increasingly favored by Chinese residents, especially the younger generation. In the case of a large increase, Western-style small household appliances have great potential; second, Chinese households have very low possession of small household appliances, and there are still more room for development than more than 30 items in Europe and the United States; Third, the Chinese market is occupied in the global market year by year. Rising, no matter whether it is based on the proportion of China's population accounting for 20% of the world's total, or according to China's rapid economic growth, the future GDP will be accounted for in the global proportion. The domestic small household appliances market will face explosive growth opportunities.
Therefore, relying on the huge domestic market, small Western-style household appliances companies, especially those with strong R&D and innovation capabilities, have developed their own brand of small household electrical appliances for Chinese consumption habits, established brands and channels, and actively expanded the scale of domestic OBM businesses. Small household appliances companies will continue to gain both ends of the smile curve (product innovation and brand marketing).
