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HOUSEHOLD APPLIANCES - CHINA - AUGUST 2018

Published By :

Mintel

Published Date : Aug 2018

Category :

Housewares

No. of Pages : N/A

The household appliance market is moderately growing in China, reflecting a steady economic status and a growing housing market. The healthy financial condition allows consumers to build a more relaxed and cosy environment at home, hence improving the quality of life works as the top trigger and motivates them to adopt more advanced appliances (eg air purifiers and electric ovens have been widely owned by about half of surveyed urban consumers).

Table of contents
OVERVIEW
What you need to know
Covered in this Report
Excluded
Subgroup definitions (by Monthly Household Income)
EXECUTIVE SUMMARY
The market
Figure 1: Best- and worst-case forecast of total value sales of household appliances market, China, 2013-23
Companies and brands
Figure 2: Market share of top household appliance companies, China, 2016 and 2017
The consumer
Penetration of air purifiers almost catches up that of wall/tower air conditioner
Figure 3: Household appliance ownership, April 2018
Almost half of consumers have an electric oven at home
Figure 4: Kitchen appliance ownership, April 2018
Don’t belittle the motivation of improving life quality
Figure 5: Top two reasons for purchasing niche appliances, April 2018
The battle between online and offline
Figure 6: Online vs offline, April 2018
After-sale services matter most for online shopping
Figure 7: Criteria of online purchase, April 2018
50% say fresh supermarket is their main channel for purchasing food
Figure 8: Cooking and dietary habits – main channel for purchasing food, April 2018
What we think
ISSUES AND INSIGHTS
Chinese consumers’ adoption of niche household appliances
The facts
The implications
Figure 9: JD Air Restaurant, China, June 2018
Online purchase of household appliances
The facts
The implications
Influence of new retail on kitchen appliances’ selection
The facts
Figure 10: Kitchen appliance ownership, by main channel for purchasing food, April 2018
The implications
Figure 11: Delivery robot, China, 2018
THE MARKET – WHAT YOU NEED TO KNOW
A category showing moderate growth
Demands in lower tier cities
Good financial status and housing market are main forces
MARKET SIZE AND FORECAST
Household appliance market maintains steady growth
Figure 12: Best- and worst-case forecast of total value sales of household appliances market, China, 2013-23
Different focus in urban and rural areas
Figure 13: Ownership of household appliances, by location, China, 2013-16
MARKET DRIVERS
Increasing disposable income
Figure 14: Per capita disposable income, by location, China, 2013-16
A steadily rising housing market
Extreme weather pushes consumption
Figure 15: National highest temperature during July 5-24, China, 2017
Demand for more eco-friendly appliances
Boosting online channel
Evolving dietary habit
KEY PLAYERS – WHAT YOU NEED TO KNOW
A less fragmented market
Smart home is a future trend
MARKET SHARE
Big players encroach on market share further
Figure 16: Market share of top household appliance companies, China, 2016 and 2017
Midea
Figure 17: Midea M-BOX cooking robot, China, 2017
Gree
Figure 18: Gree conference of ‘revolution of energy-saving’, China, 2018
Haier
Figure 19: Casarte C6 washer, China, 2018
Xiaomi
Figure 20: Internal documentary of 8 years’ start-up of Xiaomi, China, 2018
Figure 21: Xiaomi’s new launch of air conditioner, China, 2018
COMPETITIVE STRATEGIES
Smart home
Figure 22: Fotile FIKS, China, 2018
Co-created model for big e-commerce platforms
Figure 23: Gree Kinghome 286 fridge, China, 2018
Riding on buzz
Figure 24: Vatti refund notice of World Cup campaign, China, 2018
Sentiment connection with appliances
Figure 25: First episode of Haier TVC ‘Home Appliance in Love’, Japan, 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Air purifying is of importance, especially for households with kids
44% have an open kitchen
Importance of ‘improving life quality’
Compare price online and buy offline
Besides after-sale service, consumers in tier one cities want to read buyers’ reviews
Diversify fridge functions to target high incomers with different dietary habits
HOUSEHOLD APPLIANCE OWNERSHIP
Over half of households have an air purifier at home…
Figure 26: Household appliance ownership, April 2018
…with a significant differentiator by income level
Figure 27: Household appliance ownership, by monthly household income, April 2018
Sweeping robots present more in higher-income households
Build a better environment for children
Figure 28: Household appliance ownership, by presence of children, April 2018
Penetration opportunity in lower tier cities
Figure 29: Household appliance ownership, by city tier, April 2018
KITCHEN ENVIRONMENT AT HOME
Overview of Chinese urbanites’ kitchens
Figure 30: Cooking and dietary habits – kitchen environment at home, April 2018
Open kitchen represents a modern kitchen style
Figure 31: Cooking and dietary habits – kitchen environment at home, by select demographics, April 2018
KITCHEN APPLIANCE OWNERSHIP
Opportunities still left for common kitchen appliances
Figure 32: Kitchen appliance ownership, April 2018
Is electric oven niche?
Dishwasher and coffee machine are differentiating most between closed and open kitchens, rather than electric oven
Figure 33: Kitchen appliance ownership, by kitchen environment at home, April 2018
Microwave is as necessary as rice cooker to affluent households
Figure 34: Kitchen appliance ownership, by monthly household income, April 2018
Versatility of microwave does not dampen the growth of an electric oven
Figure 35: Ownership of electric oven and streamer, by total and microwave owner, April 2018
Having baby pushes consumers to add kitchen appliances, particularly juicer/hand blender
Figure 36: Kitchen appliance ownership, by presence of children, April 2018
Kitchens are equipped alike across city tiers
Figure 37: Kitchen appliance ownership, by city tier, April 2018
REASONS FOR PURCHASING NICHE APPLIANCES
Improving life quality emerges as the top motivator
Figure 38: Top two reasons for purchasing niche appliances, April 2018
Which appliances make affluent households feel life quality improved most?
Figure 39: Purchasing niche appliances to improve life quality, by monthly household income, April 2018
Which appliances improve life quality for consumers in different city tiers?
Figure 40: Purchasing niche appliances to improve life quality, by city tier, April 2018
Energy/time saving matters more for sweeping robots and dishwashers
Figure 41: Reasons for purchasing sweeping robot and dishwasher, April 2018
Electric oven, blender and washer dryer can target consumers expecting to have more functionalities
Figure 42: Reasons for purchasing electric oven, blender and washer dryer, April 2018
ONLINE VS OFFLINE
Still used to in-store shopping
Figure 43: Online vs offline, April 2018
Who are more likely to shop online?
Figure 44: Online store as first choice for purchasing household appliances, index against total, by select demographics, April 2018
CRITERIA OF ONLINE PURCHASE
After-sale service is the most important factor of online shopping
Figure 45: Criteria of online purchase, April 2018
It can still appeal to broader consumers without price competition
Figure 46: Criteria of online purchase – TURF analysis, April 2018
Buyers’ reviews play a more critical role for consumers in tier one cities
Figure 47: Criteria of online purchase, by city tier, April 2018
COOKING AND DIETARY HABITS
Taking cooking responsibility when getting mature
Figure 48: Cooking and dietary habits – responsible people for cooking at home, by age and city tier, April 2018
Supermarket/hypermarket is the top channel for buying food instead of food market
Figure 49: Cooking and dietary habits – main channel for purchasing food, April 2018
Skincare products are saved in fridge as well
Figure 50: Cooking and dietary habits – items saved in refrigerator, April 2018
Different layouts in fridge by region
Figure 51: Cooking and dietary habits – items saved in refrigerator, by region, April 2018
High-income households demand more separated areas in fridge
Figure 52: Cooking and dietary habits – items saved in refrigerator, by monthly household income, April 2018
MEET THE MINTROPOLITANS
Air purifier becomes a necessity for Mintropolitans
Figure 53: Household appliance ownership, by consumer classification, April 2018
Mintropolitans skew to Western kitchen style
Figure 54: Cooking and dietary habits – kitchen environment at home, by consumer classification, April 2018
Figure 55: Kitchen appliance ownership, by consumer classification, April 2018
Mintropolitans are keen to compare price online but are not much different on online purchasing from others
Figure 56: Online vs offline, by consumer classification, April 2018
APPENDIX – MARKET SIZE AND FORECAST
Figure 57: Total value sales of household appliances market, China, 2013-23
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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