2018 is the 40th anniversary of China's reform and opening up. This 40 years has witnessed the ever-changing changes in China's home appliance manufacturing and consumer markets. Many batches of foreign-owned home appliance companies have flooded into the Chinese market in the midst of China's reform and opening up. Nowadays, they are completely destitute. There are also people who have high morale.
2018 was also the 25th year that Bo Xi’s home appliance entered the Chinese market. This global leading home appliance manufacturer that was founded on the European continent, is further cultivating the Chinese market under the “rooted China” philosophy, while strengthening the demand for Chinese consumers on the one hand. The output of innovative products and solutions, while increasing investment in China, to enhance the localization of operating capabilities. For the Chinese market, Bo Xi appliances apparently have higher expectations.
Optimistic about the prospects of the Chinese market
China is the world’s largest home appliance consumer market, with a population base of nearly 1.4 billion. The strengthening of consumption upgrades and the rising new middle class all make China an ideal target market for global home appliance companies. More and more foreign home appliance brands are entering China. Looking for business opportunities, even foreign-owned home appliance companies that have broken down the Chinese market are trying to find new ways to return to the Chinese market. For example, the Whirlpool Group from the United States has returned to China through the acquisition of the Chinese home appliance company Hefei Sanyo; Swedish home appliance manufacturer Elek Sri Lanka will introduce its brand AEG into the Chinese market in the form of a joint venture with the Chinese home appliance giant Midea Group.
The Chinese market has always been a market that is highly valued by Boxi Household Appliances. Dr. Ou Tengbo, Chairman and CEO of Boxi Household Appliances Group, has always stressed that the Chinese market is the most important overseas market for Boxi Appliances. This year's blog on March 28th. At the Western (Zhejiang) Appliance Industry Park held the groundbreaking ceremony for the production of the dishwasher factory and the oven factory, Boxi Home Appliances has played the banner of 'rooting China'.
During the 2018 China Household Electrical Appliances and Consumer Electronics Expo (2018AWE) in March of this year, Geerke, chairman and president of Bosch Household Electrical Appliances Investment (China) Co., Ltd., said in an interview with China National Grid that the Chinese market is in the future. For a period of time, the outlook for the entire home appliance industry will be very good, and the opportunities are still very large.
2018AWE Bosch Home Appliances Booth
In his view, although the traditional ice-washing products in the Chinese market have seen the overall scale stagnate in terms of sales volume growth, the market potential is still relatively large in terms of overall upgrading. 'We think it's ice-washing. The market outlook is still very good. '
In fact, with the increase in income levels, the importance of quality of life for residents in our country has continuously increased, and thus the demand for and use of home appliances that play an important role in home life have undergone tremendous changes.
According to the “2017 China High-end Consumer Electronics Consumer Survey Report” released by the Red Roof Award organizing committee during the 9th China High-end Home Appliances Home Trends Release and the Red Roof Awards Ceremony on December 22 last year, high- and middle-income consumers in China are buying When it comes to home appliances, the main concerns are the technical content of the product, intelligent control, product quality, and brand awareness. The degree of attention to price is further weakened. For example, in the purchase of refrigerators, middle- and high-income consumers pay more attention to the preservation technology of refrigerators. Energy-saving and environmental-friendly performance and intelligent operation of the product; when purchasing a washing machine, its main concern is the product's sterilization function, intelligent control and self-cleaning function.
Under the escalation of consumption promotion, not only the market size of traditional household appliances such as refrigerators, washing machines, range hoods, and gas stoves has continued to expand, but also emerging household appliances such as dishwashers, clothes dryers, and electric steamers have gradually entered China. The growth channel has become a new growth point for China's home appliance industry.
2018AWE Siemens Home Appliances Booth
According to Yikang data from market research institutes, the retail volume of dishwashers in China reached 885,000 units in 2017, an increase of 129% year-on-year, and retail sales reached 4.33 billion yuan, an increase of 119% year-on-year. Zhong Yikang expects, 2018 The scale of China's dishwasher market is expected to reach 2 million units in the next 10 years. If the compound annual growth rate of the industry remains at 40-50% in the next 10 years, the annual sales volume of dishwashers in 2028 will reach 10 million units.
2018AWE Siemens Hwan Net Series Dishwasher New Release
According to data from another market research organization, Aowei Cloud Network, in 2017, China's embedded steamer market sales reached 538,000 units, an increase of 56% year-on-year, and achieved sales of 3.4 billion yuan, a year-on-year increase of 55.7%. Ove Cloud Network Forecast, 2018 Annual steam box category sales, the amount will maintain more than 50% growth.
The consumption upgrade in China's home appliance market has made Bo Xi home appliance one of the major beneficiaries, and it is also a key driving force for its deep entrenchment in the Chinese market. For Bo Xi’s home appliances, the Chinese market is still promising.
The brand image is deeply rooted in people’s hearts
Since entering the Chinese market in 1994, for a quarter of a century, Bo Xi’s home appliances have won the hearts and minds of hundreds of millions of Chinese consumers thanks to its internationally innovative design, globally uniform production inspection standards and high-quality products. In China, Bo Xi’s home appliance has become a brand name for high-end home appliances. It has occupied a leading position in the high-end home appliance market in China.
According to the “2017 China High-end Consumer Electronics Consumer Survey Report”, in the three consecutive consumer surveys, almost all Bo Xi household appliances are high-end refrigerators, washing machines, dishwashers, dryers, and electric ovens. , Power steamer and other high-end home appliances when the preferred brand.
2018AWE Bosch Vital Power Door Refrigerator New Release
Consistent with its high brand reputation, Bo Xi’s home appliance business continued to climb in the Chinese market. In March of this year, Boxi Home Appliances Group released its 2017 annual financial report. In fiscal year 2017, Bo Xi’s home appliance sales reached 13.8 billion Euros. The annual growth rate was 5.8% (up from 3.5% year-on-year in 2016), far exceeding the average growth rate of 2% in the global household appliance market, and the sales revenue record was refreshed for eight consecutive years. The performance of Bosch Electric Appliances in Greater China is particularly prominent, localization, and intelligence. The successful implementation of the strategy, etc., helped Bo Xi home appliances achieve double-digit revenue growth.
Bosch Vital Power Door Refrigerator
In China, Boxi Home Appliances has been committed to satisfying the needs of Chinese consumers for a better life through the launch of innovative products, and has played the role of 'pioneer' in multiple home appliance categories. In 2002, Boxi Home Appliances took the lead. The introduction of dishwasher products into the Chinese market became the earliest home appliance manufacturer selling dishwasher products in the Chinese market. Today, with the long-term adherence of Boxi Appliances and the joint efforts of other domestic Chinese home appliance companies, the Chinese dishwasher market welcomes In March this year, Boxi Home Appliances took the initiative to take on the responsibility of the industry leaders, organized a dishwasher summit forum, invited industry associations, market research institutions, industrial chain cooperation companies, sales partners and media to discuss how to further promote Chinese dishwasher market development.
According to Huang Lei, Senior Director of Kitchen Appliance Product Marketing Department of Greater China in Bosch Household Appliances (China) Co., Ltd., as early as around 2010, Boxi Home Appliances introduced the steamer into the Chinese market. At that time, the Chinese steamer market was still in its infancy. Nowadays, China's steamer box market has entered an outbreak and growth period. Bo Xi’s home appliances are also building high-quality products and active marketing initiatives to promote steamer products in the Chinese market. Landing.
She highly praised Boxi Home Appliances, the chairman of the China Household Electrical Appliances Association. She said that as one of the earliest foreign-invested household appliance companies entering the Chinese market, Boxi Home Appliances is also one of the most successful foreign-owned home appliance companies. Chinese consumers create quality household electrical appliances. They are also involved in the development of the "Smart Home Appliance Cloud-Connected Interoperability Standard" led by the China Household Electrical Appliances Association, and they are also working with the China Household Electrical Appliances Association and the Chinese home appliance industry in German Industry 4.0 and smart manufacturing technologies. The sharing and exchange of experience has played an important role in promoting the development of China's home appliance industry.
Rooting in the Chinese market, Boxi Home Appliances invests more in China
Since entering China, Boxi Home Appliances has continuously increased its investment in China and has successively established three production bases in Nanjing, Wuxi and Luzhou.
In recent years, driven by consumer upgrades, the trend of upgrading the product structure of China's home appliance market towards high-end is becoming more apparent. The investment of Boxi Home Appliances in China is also increasing, which is inconsistent with the inability of certain foreign-owned home appliance brands to compete with China. The gradual withdrawal of the environment from the Chinese market is in sharp contrast.
In November 2015, on the eve of the Chinese dishwasher market, Boxi Home Appliances spent RMB 700 million to build a dishwasher factory in its home appliance industry park in Zhangzhou, with a designed capacity of 2 million units/year and a capacity of 60 Wantai/year. At that time, Boxi Home Appliances made a commitment to invest 1.5 billion yuan in the “Thirteenth Five-Year Plan” period, making the Zhangzhou Home Appliance Industry Park one of the world's leading production bases for Bo Xi’s home appliances.
Bo Xi (Luzhou) Home Appliance Industry Park Dishwasher Factory Launching Ceremony
On March 28th this year, Boxi Home Appliances held a dishwasher factory launching ceremony to realize the localization of dishwashers. On the same day, Boxi Home Appliances officially laid the foundation for another investment project in the Zhangzhou Home Appliance Industry Park - the oven factory. The total investment of the factory is RMB 600 million. It is planned to be put into production in 2020. The initial production capacity will be 1 million units. In the future, it will have an annual production capacity of 2 million units.
The Groundbreaking Ceremony of the Oven Factory in the Home Appliance Industry Park in Bosi (Zhangzhou)
On the previous day, Boxi Home Appliances also signed a new letter of intent for cooperation with the People's Government of Bozhou City, investing RMB 1.69 billion in the construction of the dryer and washing machine factory in the Bo Xi (Zhangzhou) Home Appliance Industry Park and the home appliance industry in Bozhou (Zhangzhou). Park's smart manufacturing level has been improved. The new dryer factory and washing machine factory have a designed capacity of 1.2 million units. It is expected to be completed by 2020. It is understood that by 2020, Luzhou will be established as the largest single unit in the world. Production base.
Signing Ceremony of Clothes Dryer and Washing Machine Project in Boxi (Zhangzhou) Home Appliance Industry Park
'Sustained investment in China reflects the high importance attached to the Chinese market by Boxi Household Appliances. The dishwasher factory, oven factory and dryer factory invested by Boxi Home Appliances in Bozhou are the company's continuous efforts in pursuing the Chinese market and its continuous implementation of a digital strategy. , Localization strategies and 'consumer-centric' development strategies are concentrated expression. 'Gelke said.
Boxi Home Appliances, as an active promoter and an important participant in the Chinese home appliance industry, believes that it will surely make a big contribution to China's vast market. She hopes that Boxi Home Appliances will be able to grasp China's economic development opportunities in the new era and have a better future. tomorrow.
For the outside world's expectations, Gail and his team made clear their position: In the future, Boshi Electric will continue to provide Chinese consumers with a higher quality home life experience and lead the continued development of the Chinese home appliance industry.