Page 186 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
quick technological improvements,” Miao added. including robots and dust mite controllers. The
China will continue supporting the development output and sales of China’s home appliance saw
of robotics and welcomes all players to share a stable growth in the first half of 2019. Domestic
the future growth opportunities. In 2018, over retail sales reached US$62.28 billion during the
148,000 industrial robots were produced in period, with over 40 percent contributed by online
China, accounting for 38 percent of the global sales. Chinese e-commerce giant JD topped the list
production volume. But the production volumes in retail channels of home appliances, accounting
are was declining in mid 2019. In June, about for a 22.7 percent market share, followed by
13,700 industrial robots were produced, marking a Suning.com (21.1 percent) and Alibaba’s online
plummet of 11 percent year-on-year. The decline marketplace Tmall (10.1 percent).
of China’s industrial robots is partly the result of
the automotive sector, which has been among the Chinese home appliance makers and online
largest users of industrial robots in plants. The retailers are accelerating efforts to further tap the
market size of China’s robotics sector hit roughly consumption potential from rural areas. Although
US$8.7 billion in 2019, marking an average annual less than 20 percent of online retail sales came
growth rate of 20.9 percent from 2014 to 2019. from villages and small towns during the January-
Specifically, the market for industrial robots will June 2019 period, the revenue from e-commerce
be worth $5.73 billion that year, and the market channels in these areas increased by 96 percent
for service robots was worth US$2.2 billion. The year-on-year. In addition, the sales revenue of
market size of robots for special use was US$750 televisions, refrigerators and air conditioners stood
million (Ma, Robotics Upgrade). at 63.1 billion yuan, 51.6 billion yuan and 118.9
billion yuan respectively in the first half of this
The service robot industry in Shenzhen, year. The increase of per capita disposable income
Guangdong province, grew rapidly in the last of residents in rural areas, and their consumption
two years, thanks to the rapid growth of artificial upgrades have led to the explosive growth of
intelligence technologies and rising market online retail in the countryside. The domestic home
demand. The output value of service robots in appliances sector will maintain steady growth,
Shenzhen increased 21.79 percent year-on-year to and the tendency of consumption upgrades and
about US$5.06 billion in 2018. Compared with the expansion into small towns and rural areas will
robots for industrial use, which saw slower growth continue, owing to the country’s series of policies
that year, demand for service robots has increased to stimulate the consumption of home appliances.
rapidly. Shenzhen’s industrial robot output value People in smaller towns and rural areas are
grew 6.25 percent year-on-year to about 80.3 seeking high-end products, along with the rising
billion yuan in 2018. After years of development, e-commerce penetration rate in these areas. There
a growing number of companies have used is huge growth potential for home appliances in
advanced technologies such as AI for development rural areas, especially the e-commerce channels,
of service robots, making them more smart and and the logistics and distribution in these areas are
human-oriented. The city has developed a healthy still developing (Fan, Upgrading).
and sound industrial chain in the robotics sector
(Qiu, Service Robots). For example, sales revenues of China’s air
conditioner industry are expected to rise slightly,
Household Electrical Appliances while prices are likely to drop owing to the decline of
raw material prices and the increasing supply of air
China has vowed to provide greater policy conditioners from major home appliance makers.
support to encourage the consumption of home New energy efficiency standards, which were
appliances and to meet people’s demand for green released around the beginning of 2020, will boost
and smart products. The home appliance market rapid growth of variable-frequency air conditioners.
upgraded by turning its focus from functional Sales of air conditioners reached 33.7 million units
consumption to upgraded consumption, which in the first half of 2019, a slight increase of 1.5
boosted the sales of new types of home appliances percent compared with the same period in 2018,
while related sales revenue totaled US$16.5 billion,
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quick technological improvements,” Miao added. including robots and dust mite controllers. The
China will continue supporting the development output and sales of China’s home appliance saw
of robotics and welcomes all players to share a stable growth in the first half of 2019. Domestic
the future growth opportunities. In 2018, over retail sales reached US$62.28 billion during the
148,000 industrial robots were produced in period, with over 40 percent contributed by online
China, accounting for 38 percent of the global sales. Chinese e-commerce giant JD topped the list
production volume. But the production volumes in retail channels of home appliances, accounting
are was declining in mid 2019. In June, about for a 22.7 percent market share, followed by
13,700 industrial robots were produced, marking a Suning.com (21.1 percent) and Alibaba’s online
plummet of 11 percent year-on-year. The decline marketplace Tmall (10.1 percent).
of China’s industrial robots is partly the result of
the automotive sector, which has been among the Chinese home appliance makers and online
largest users of industrial robots in plants. The retailers are accelerating efforts to further tap the
market size of China’s robotics sector hit roughly consumption potential from rural areas. Although
US$8.7 billion in 2019, marking an average annual less than 20 percent of online retail sales came
growth rate of 20.9 percent from 2014 to 2019. from villages and small towns during the January-
Specifically, the market for industrial robots will June 2019 period, the revenue from e-commerce
be worth $5.73 billion that year, and the market channels in these areas increased by 96 percent
for service robots was worth US$2.2 billion. The year-on-year. In addition, the sales revenue of
market size of robots for special use was US$750 televisions, refrigerators and air conditioners stood
million (Ma, Robotics Upgrade). at 63.1 billion yuan, 51.6 billion yuan and 118.9
billion yuan respectively in the first half of this
The service robot industry in Shenzhen, year. The increase of per capita disposable income
Guangdong province, grew rapidly in the last of residents in rural areas, and their consumption
two years, thanks to the rapid growth of artificial upgrades have led to the explosive growth of
intelligence technologies and rising market online retail in the countryside. The domestic home
demand. The output value of service robots in appliances sector will maintain steady growth,
Shenzhen increased 21.79 percent year-on-year to and the tendency of consumption upgrades and
about US$5.06 billion in 2018. Compared with the expansion into small towns and rural areas will
robots for industrial use, which saw slower growth continue, owing to the country’s series of policies
that year, demand for service robots has increased to stimulate the consumption of home appliances.
rapidly. Shenzhen’s industrial robot output value People in smaller towns and rural areas are
grew 6.25 percent year-on-year to about 80.3 seeking high-end products, along with the rising
billion yuan in 2018. After years of development, e-commerce penetration rate in these areas. There
a growing number of companies have used is huge growth potential for home appliances in
advanced technologies such as AI for development rural areas, especially the e-commerce channels,
of service robots, making them more smart and and the logistics and distribution in these areas are
human-oriented. The city has developed a healthy still developing (Fan, Upgrading).
and sound industrial chain in the robotics sector
(Qiu, Service Robots). For example, sales revenues of China’s air
conditioner industry are expected to rise slightly,
Household Electrical Appliances while prices are likely to drop owing to the decline of
raw material prices and the increasing supply of air
China has vowed to provide greater policy conditioners from major home appliance makers.
support to encourage the consumption of home New energy efficiency standards, which were
appliances and to meet people’s demand for green released around the beginning of 2020, will boost
and smart products. The home appliance market rapid growth of variable-frequency air conditioners.
upgraded by turning its focus from functional Sales of air conditioners reached 33.7 million units
consumption to upgraded consumption, which in the first half of 2019, a slight increase of 1.5
boosted the sales of new types of home appliances percent compared with the same period in 2018,
while related sales revenue totaled US$16.5 billion,
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