Page 9 - SCBJ-201511
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November 2015
are also becoming more susceptible to an ones with the capability to automatically Future of the industry and
evolving small appliance market, causing detect external factors such as heat or opportunities for investors
China to become the world’s biggest pressure and adjust accordingly. However,
consumer and manufacturer of electrical China Trade Research’s findings indicate As part of its 12th Five Year Plan, the
appliances. Classified as encouraged in that a growing proportion of consumers Chinese Government has built over 36
China’s Catalogue for Foreign Investment tend to purchase full kitchen sets, attracted million new low-income housing units,
Industries, there is ample opportunity for by same brand discounts, unified design and with more to be built in the future –
foreign investors in this growing market. and post purchase services. Furthermore, combined with China’s improving living
full kitchen suites with inbuilt appliances standards – the small appliances industry
Consumer Trends and are replacing individual standalone small is sure to make exceptional growth. Indeed,
Purchasing Habits appliances, providing convenience and the EMIS China Electrical Appliances
space-saving solutions in a market where Sector 2014 Report forecasts a compound
HKTDC’s survey reports that replacing property space is a premium. annual growth rate of 9.9 percent for the
older or existing broken products and industry, and predicts electronic base
improving quality of life are the main Online shopping is becoming an important prices to remain stable due to the relatively
reasons that Chinese households purchase option for consumers, primarily on China’s low price of raw materials. Because of
small appliances. Changing consumption largest e-commerce platforms taobao. developments in consumers’ preference
trends, which reflects increasing disposable com, Tmall.com and JD.com, which are for design, function and greenness over
income of consumers, have forced expanding their delivery scope to more price, there are opportunities for foreign
domestic electronics giants to widen their rural areas. However, market research investors to expand in the market,
range of household appliances. Middle shows that a large majority of consumers especially where demand exists for better
class consumers, who tend to prefer more still purchase small electrical appliances at energy efficiency and hygiene.
mid to high-end ranges, now look beyond traditional outlets such as shopping malls
price, quality and brand of products when and specialist electronic stores, meaning
purchasing small appliances; the report that electronics retailers are going to have
shows that 88 percent of respondents to maintain a balance between online and
are now more concerned with energy offline sales methods.
efficiency, environmental protection, non-
toxic materials, durability, and ease of Since its establishment in 1992, Dezan Shira & Associates has been guiding
operation of products, and are willing to foreign clients through Asia’s complex regulatory environment and assisting
pay an extra 11 percent for these functions. them with all aspects of legal, accounting, tax, internal control, HR, payroll
These are features which have become the and audit matters. As a full-service consultancy with operational offices across
norm in the west, where energy efficiency China, Hong Kong, India and emerging ASEAN, we are your reliable partner
and hygiene standards are highly regulated for business expansion in this region and beyond.
and developed. Furthermore, middle class
consumers are more trusting of foreign
branded products, giving rise to ease of
integration in the existing market.
In addition, smart functions have been For inquiries, please email us at info@dezshira.com. Further information about
one of the market’s more dramatic our firm can be found at: www.dezshira.com.
developments, with consumers preferring
products which are compatible with smart
phones or are remotely controllable, or
7
are also becoming more susceptible to an ones with the capability to automatically Future of the industry and
evolving small appliance market, causing detect external factors such as heat or opportunities for investors
China to become the world’s biggest pressure and adjust accordingly. However,
consumer and manufacturer of electrical China Trade Research’s findings indicate As part of its 12th Five Year Plan, the
appliances. Classified as encouraged in that a growing proportion of consumers Chinese Government has built over 36
China’s Catalogue for Foreign Investment tend to purchase full kitchen sets, attracted million new low-income housing units,
Industries, there is ample opportunity for by same brand discounts, unified design and with more to be built in the future –
foreign investors in this growing market. and post purchase services. Furthermore, combined with China’s improving living
full kitchen suites with inbuilt appliances standards – the small appliances industry
Consumer Trends and are replacing individual standalone small is sure to make exceptional growth. Indeed,
Purchasing Habits appliances, providing convenience and the EMIS China Electrical Appliances
space-saving solutions in a market where Sector 2014 Report forecasts a compound
HKTDC’s survey reports that replacing property space is a premium. annual growth rate of 9.9 percent for the
older or existing broken products and industry, and predicts electronic base
improving quality of life are the main Online shopping is becoming an important prices to remain stable due to the relatively
reasons that Chinese households purchase option for consumers, primarily on China’s low price of raw materials. Because of
small appliances. Changing consumption largest e-commerce platforms taobao. developments in consumers’ preference
trends, which reflects increasing disposable com, Tmall.com and JD.com, which are for design, function and greenness over
income of consumers, have forced expanding their delivery scope to more price, there are opportunities for foreign
domestic electronics giants to widen their rural areas. However, market research investors to expand in the market,
range of household appliances. Middle shows that a large majority of consumers especially where demand exists for better
class consumers, who tend to prefer more still purchase small electrical appliances at energy efficiency and hygiene.
mid to high-end ranges, now look beyond traditional outlets such as shopping malls
price, quality and brand of products when and specialist electronic stores, meaning
purchasing small appliances; the report that electronics retailers are going to have
shows that 88 percent of respondents to maintain a balance between online and
are now more concerned with energy offline sales methods.
efficiency, environmental protection, non-
toxic materials, durability, and ease of Since its establishment in 1992, Dezan Shira & Associates has been guiding
operation of products, and are willing to foreign clients through Asia’s complex regulatory environment and assisting
pay an extra 11 percent for these functions. them with all aspects of legal, accounting, tax, internal control, HR, payroll
These are features which have become the and audit matters. As a full-service consultancy with operational offices across
norm in the west, where energy efficiency China, Hong Kong, India and emerging ASEAN, we are your reliable partner
and hygiene standards are highly regulated for business expansion in this region and beyond.
and developed. Furthermore, middle class
consumers are more trusting of foreign
branded products, giving rise to ease of
integration in the existing market.
In addition, smart functions have been For inquiries, please email us at info@dezshira.com. Further information about
one of the market’s more dramatic our firm can be found at: www.dezshira.com.
developments, with consumers preferring
products which are compatible with smart
phones or are remotely controllable, or
7
