Page 218 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
Home Appliances opportunities to increase sales and market share.
At the same time, household appliances, such
By upgrading their products and increasing as dishwashers, handheld vacuum cleaners,
outbound investments, Chinese home appliance hairdressing and beauty products and massage
companies have sped up their market entrance chairs also recorded strong sales, which activated
plans for foreign markets in recent years. Home the otherwise sluggish home appliance market
appliance companies in China have embraced and also strengthened the role of home appliances
a new profitable growth orientation by going in improving people's sense of satisfaction. The
global, while delivering a lot of benefits to local growing desire for smarter and high-end products
communities, including creating jobs, boosting the is expected to continue, and it is bringing significant
level of industrialization, and enriching the cultural opportunities for Chinese and foreign home
life of local residents (Hongyu). appliance makers alike (Ma).
China's home appliance market is expected to In the first quarter of 2021, China's exports of
return to pre-pandemic levels by 2022 as high- household appliances totaled 147.94 billion RMB
end and smart products grow in popularity. The (US$22.9 billion), an increase of 63.4% year on
retail sales in China's household appliance market year. Hisense, a Chinese multinational white goods
reached 833.3 billion RMB (US$127.4 billion) in and electronics manufacturer, took advantage
2020, marking a year-on-year decline of 6.5%. But of its role as the first Chinese firm to become a
such figures still showcased strong resilience amid sponsor of UEFA EURO 2016 to vigorously expand
the COVID-19 pandemic. Affected by the contagion, its overseas market over the past few years.
the first quarter of 2020 saw large-scale contraction Other major appliance manufacturers from China
with a year-on-year decrease of 35.8% in sales of such as GREE, Midea and other brands are also
home appliances, but then performance gradually scrambling to expand their overseas influence by
improved. In the fourth quarter, online and offline making their presence felt at globally renowned
markets fully recovered, and retail sales reached stadiums, while home appliance brands such as
the highest annual level at 294.1 billion RMB. It TCL, Meiling and Vatti are looking to integrate
is also worth noting that last year, e-commerce into a larger international market by joining
channels accounted for more than 50% of retail hands with internationally influential athletes.
sales of home appliances for the first time in China. In addition to enhancing their brand recognition
In 2020, online retail sales of home appliances among overseas consumers, these Chinese
stood at 419.9 billion RMB, marking a year-on- manufacturers are speeding up when it comes to
year increase of 14.48 percent and an increase offering more suitable products targeting these
of 3 percentage points over the previous year. By markets (PD, Large Home).
comparison, retail sales of home appliances via
offline channels were 413.4 billion RMB — a year- Small appliances, such as air fryers, electric
on-year decrease of 21.13 percent. The pandemic mops and electric massagers, rose as a highlight
has reshaped consumer lifestyles, thus promoting of China's electric appliance industry which
changes in the types of home appliances available. registered a remarkable operating revenue of
In 2020, the main 4K/8K smart TVs, which feature 1.48 trillion RMB (US$230 billion) in 2020. Given
large screens, ultra-high definition and artificial the continuously improving living standards of
intelligence, are becoming increasingly popular, Chinese residents, as well as the saturate market
as are healthy high-end air conditioners, premium of traditional home appliances, appliance makers
refrigerators with large capacity and disinfection are placing more emphasis on expanding their
capabilities, and high-end washing machines. market shares. Under this background, the small
Such a shift in preferences has led to changes in appliance market is like a "new racing track" of the
the product structure of China's home appliance industry. Personal beauty equipment, as well as
market and raised average prices. The outbreak fascia guns are popular among young consumers;
has changed consumer preferences and shopping electric ovens and breakfast makers make cooking
habits. Chinese manufacturers have to allocate possible for "rookie chefs"; vacuum cleaners and
more resources to better exploit emerging robots free people from daily chores. These new
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Home Appliances opportunities to increase sales and market share.
At the same time, household appliances, such
By upgrading their products and increasing as dishwashers, handheld vacuum cleaners,
outbound investments, Chinese home appliance hairdressing and beauty products and massage
companies have sped up their market entrance chairs also recorded strong sales, which activated
plans for foreign markets in recent years. Home the otherwise sluggish home appliance market
appliance companies in China have embraced and also strengthened the role of home appliances
a new profitable growth orientation by going in improving people's sense of satisfaction. The
global, while delivering a lot of benefits to local growing desire for smarter and high-end products
communities, including creating jobs, boosting the is expected to continue, and it is bringing significant
level of industrialization, and enriching the cultural opportunities for Chinese and foreign home
life of local residents (Hongyu). appliance makers alike (Ma).
China's home appliance market is expected to In the first quarter of 2021, China's exports of
return to pre-pandemic levels by 2022 as high- household appliances totaled 147.94 billion RMB
end and smart products grow in popularity. The (US$22.9 billion), an increase of 63.4% year on
retail sales in China's household appliance market year. Hisense, a Chinese multinational white goods
reached 833.3 billion RMB (US$127.4 billion) in and electronics manufacturer, took advantage
2020, marking a year-on-year decline of 6.5%. But of its role as the first Chinese firm to become a
such figures still showcased strong resilience amid sponsor of UEFA EURO 2016 to vigorously expand
the COVID-19 pandemic. Affected by the contagion, its overseas market over the past few years.
the first quarter of 2020 saw large-scale contraction Other major appliance manufacturers from China
with a year-on-year decrease of 35.8% in sales of such as GREE, Midea and other brands are also
home appliances, but then performance gradually scrambling to expand their overseas influence by
improved. In the fourth quarter, online and offline making their presence felt at globally renowned
markets fully recovered, and retail sales reached stadiums, while home appliance brands such as
the highest annual level at 294.1 billion RMB. It TCL, Meiling and Vatti are looking to integrate
is also worth noting that last year, e-commerce into a larger international market by joining
channels accounted for more than 50% of retail hands with internationally influential athletes.
sales of home appliances for the first time in China. In addition to enhancing their brand recognition
In 2020, online retail sales of home appliances among overseas consumers, these Chinese
stood at 419.9 billion RMB, marking a year-on- manufacturers are speeding up when it comes to
year increase of 14.48 percent and an increase offering more suitable products targeting these
of 3 percentage points over the previous year. By markets (PD, Large Home).
comparison, retail sales of home appliances via
offline channels were 413.4 billion RMB — a year- Small appliances, such as air fryers, electric
on-year decrease of 21.13 percent. The pandemic mops and electric massagers, rose as a highlight
has reshaped consumer lifestyles, thus promoting of China's electric appliance industry which
changes in the types of home appliances available. registered a remarkable operating revenue of
In 2020, the main 4K/8K smart TVs, which feature 1.48 trillion RMB (US$230 billion) in 2020. Given
large screens, ultra-high definition and artificial the continuously improving living standards of
intelligence, are becoming increasingly popular, Chinese residents, as well as the saturate market
as are healthy high-end air conditioners, premium of traditional home appliances, appliance makers
refrigerators with large capacity and disinfection are placing more emphasis on expanding their
capabilities, and high-end washing machines. market shares. Under this background, the small
Such a shift in preferences has led to changes in appliance market is like a "new racing track" of the
the product structure of China's home appliance industry. Personal beauty equipment, as well as
market and raised average prices. The outbreak fascia guns are popular among young consumers;
has changed consumer preferences and shopping electric ovens and breakfast makers make cooking
habits. Chinese manufacturers have to allocate possible for "rookie chefs"; vacuum cleaners and
more resources to better exploit emerging robots free people from daily chores. These new
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