The kitchen appliance market has always been regarded as a new profit highland for the household appliance industry. After undergoing a trend of high growth last year, the pace of the rapid growth of the kitchen appliance market this year seems to have begun to slow down, and gradually entered the growth shift period. This development Under the background, how can kitchen and electric companies cope with the market pressure brought about by the shift period and how can they tap new incremental opportunities?
Market growth in the first half of the year
Entering 2018, the industry has a very high expectation for the full-year performance of the kitchen electricity market. However, from the latest data in the first quarter of 2018, people are inevitably disappointed. According to AVC's omni-channel promotion Data show that in the first quarter of 2018, the retail sales volume of the kitchen appliance market was 12.8 billion yuan, down 6.1% year-on-year; retail sales were 13.669 million units, down 3.3% year-on-year, and the overall amount fell. Among the offline markets, this year 1 -12 weeks, the offline retail sales of traditional kitchen electric range hoods, gas stoves, and sterilizers were -16.7%, -7.5%, and -11.9%, respectively.
This is the first time in the first quarter of the year that the kitchen and electric market suffered from cold weather, which was mainly affected by the cooling of the real estate market, the postponed peak season caused by the dislocation of the Spring Festival, and the impact of real estate policies was very profound. Since late March, the house was used The concept of “not being used for speculation” has become popular. As a result, more than 10 cities across the country have issued control policies including restrictions on purchases, restrictions on sales, and shakes, and the first priority purchases.
At the same time, AVC's total data also showed that during the May 1st this year, the fast-growing emerging kitchen appliances category began to show a slowdown, with embedded products slightly declining. The overall sales amounted to 519 million yuan, down 5.2% year-on-year, and the sales volume was 85,800 units, down 6.7% year-on-year. Under the influence of the continuous regulation of the real estate market, the kitchen appliance industry gradually entered a growth shift period in the first half of the year.
Some industry insiders predicted that as the government continues to maintain high pressure in the real estate market and the disappearance of some of the major kitchen appliance product popularization dividends, the market for kitchen appliances and head brands will continue to grow rapidly over the years. Kitchen appliance market new normal.
In fact, from 2012 to 2017, the average annual retail sales in China's kitchen electricity market increased by 13.5% annually, leading all home appliance categories with double-digit growth. This has also attracted all industries and giants to join the kitchen appliance industry in succession. The fierce competition in the market has greatly increased. Nowadays, the low-to-medium-speed development has become the new norm in the kitchen and electric industry. This is undoubtedly a huge challenge for both the new entrants and the traditional professional giants such as Fang Taibo.
Where are the new growth opportunities?
In the face of the severe market situation, emerging kitchen and electric companies are inexperienced in most places, and traditional kitchen powerhouses are more selective in this node to find new growth opportunities and achieve new market breakthroughs. Then, an overview of the kitchen power market The state of development, where will the new growth opportunities appear?
First, the three-fourth market has become a new driver.
After years of in-depth development, the market demand in the first and second tier cities is already approaching saturation, and market development outside the cities is already on the road. According to data from the National Bureau of Statistics, the per capita GDP of China’s third and fourth tier cities has reached US$9000 and US$6,000, respectively. The experience of Japan and the United States shows that after the GDP per capita exceeds US$6,000, the economy has entered a period of rapid growth in consumption and service industries. Therefore, consumer demand in third-tier and fourth-tier cities in China is experiencing an outbreak of growth, and the market for kitchen and electric appliances is the focus of new markets. It also leans towards the third and fourth line markets.
In addition, the in-depth sinking of e-commerce channels also rewritten the pattern of the third and fourth line kitchen electricity market. Under the support of the national policy, brand owners and platform providers began to allocate rural markets. In Suning, 1,300 e-commerce units have been developed. Shops, 1,800 authorized service stations, 200 online specialty shops; Jingdong has established 1,300 Jingdong service stores, more than 1,000 county-level service centers, and more than 50,000 rural promoters; rural Taobao has developed 18,000 Member stores, 240 local platform companies, covering 5,000 towns in 10 provinces, 50,000 villages, 200 million villagers, etc., sales of blood on the 3rd, 4th and even 5th and 6th line kitchen electricity market will become more open.
Notice that the population of the third and fourth tier cities is more than double that of the first and second tier cities, and the real estate sales are also better than the latter, but the market share of the kitchen and electric appliances only accounts for about 25% of the total market. Therefore, the third and fourth tier cities kitchen appliances The market has great growth potential and is expected to drive the continuous growth of the kitchen power market in the next decade.
Just in the first quarter of this year, the growth of the kitchen power market also demonstrated the growth energy of the third and fourth-tier markets. In the first quarter, the areas with relatively high penetration in Beijing, Tianjin, Zhejiang, and Shanghai became the hardest-hit regions for a year-on-year decline. Since the penetration rate of the line market is still relatively low, the year-on-year growth rate has a comparative advantage over the primary and secondary markets. Continuing guidance of national policies such as urbanization strategy, urban agglomeration strategy, featured township strategy and rural rejuvenation strategy, The kitchen kitchen market will gradually develop into the fast track of development and become the main factor driving the continuous growth of the industry in the future.
Second, high-end upgrade is a breakthrough.
In addition to expanding new markets, high-end upgrades through its own product structure can also stimulate high-end user groups, resulting in greater room for efficiency. Access to information is available. From 2008 to 2017, the annual per capita disposable income of urban residents in China gradually increased. The compound annual growth rate is 10%. The residents' income increases rapidly, and consumers are more confident in their own consumption. Especially last year, the consumer confidence index reached 113, which is the highest level in ten years. The trend of consumption upgrade has become more prominent.
According to the “2017 China High-end Consumers Consumer Report”, over 60% of consumers purchase high-end home appliances for the sake of improving their quality of life. High-end upgrades have become a new breakthrough for kitchen power companies. Currently, leading kitchen power companies are constantly Middle and high-end layout, increase the proportion of high-end products.
The traditional electric kitchen appliance manufacturer in China has positioned high-end kitchen appliances and has accumulated high-end brand image in China for many years. It first explored smart products in the industry and created ROKI smart cooking system. It can not only recommend recipes for users, but also provide According to the recipes needed for the recipe selected, the stove's heat is automatically adjusted, the range hood's air volume and the steamer, the cooking time of the oven, making cooking as easy as driving a car. At present, ROKI has fully access to the owner's electrical products among.
Coincidentally, the other kitchen giant is too aggressively deploying high-end appliances. Whether it is a submersible butterfly-ring suction hood CXW-200-EM17T or a smart induction sterilization cabinet J89E, it will not only wash dishes, but also go to fruits and vegetables. The new X1S, a cross-border three-in-one sink dishwasher for farmers with disabilities, demonstrates that Fang Tai is continuously exploring new kitchen life experiences for Chinese families.
Under the trend of escalating consumer demand, seizing the high-end upgrade outlet is the key to kitchen appliance companies gaining a new growth breakthrough. The bosses and leading kitchen and electric appliances companies represented by Fangtai are all seeking high-end upgrades. What are the reasons for small businesses? Focus on technological innovation, and then layout high-end market?
Third, emerging kitchen power is still the growth engine.
In recent years, emerging markets such as dishwashers, embedded kitchens and other markets have already experienced tremendous growth. In the coming years, emerging kitchen power will continue to be an engine of growth, so we will seize this development in this area. All have grasped the foreseeable future.
During the 51st of this year, AVC data monitoring showed that the product structure of the offline dishwasher market was relatively stable, with a slight increase in the retail share of desktop and embedded dishwashers, both increasing by 0.4 percentage points; In terms of multifunction machines, the share of retail volume of embedded steamer and embedded micro-steamer increased significantly, especially for embedded steamer, which increased by 19.7%. Special emphasis was placed on the retail of embedded micro-steamer in the 7000+ price segment. Significant increase in volume share, high-end emerging kitchen electricity market will accelerate competition.
In 2017, the kitchen and electric market reached 97.74 billion yuan, a step away from the threshold of hundreds of billions. Along with the continuous expansion of emerging categories, the kitchen electricity market has exceeded the 100 billion mark. Not to mention, Zhong Yikang predicted that in 2018, the dishes would be washed. The machine and embedded integrated machine will release a huge pulling force, prompting the entire kitchen and electric market to continue its rapid growth.
Although the kitchen electric appliance market entered the growth shift period in the first half of this year, the kitchen electric appliance market continued to show a rising trend in the whole year. In 2018, the kitchen and electric market will reach 110 billion yuan, an increase of 12.5% year-on-year. Jia Dongsheng, general manager of Beijing Zhongyekang Times Market Research Co., Ltd., said recently.
Changes in housing patterns, continued income growth will promote the development of China's kitchen electricity market into a large market of over one hundred billion yuan. At the same time, under the deep development of the three or four levels of market, driven by high-end product structure upgrades and a new engine in the emerging kitchen electricity market, kitchen appliances There will be more room for growth in the market, and the future will remain open.