The report titled “China Large Appliances Market Outlook to 2020 – Rising Preference for Smart Technology Appliances and Replacement Demand to Drive Market” provides a comprehensive analysis of large appliances market in China. The report focuses on overall market size for sale of large appliances. These include revenue from domestic sale in television, washing machine, air conditioner and refrigerator. Market was also estimated based on volume sales in each category. Market is segmented based on product type and sub segmented based on their essential features and price range. Segmentation is also done on the basis of distribution channel. The report also covers the snapshot of logistics, competitive landscape of major players in China large appliances market, export and import scenario and product detail of bestselling models in different category. The report concludes with market projections for future and analyst recommendation highlighting the major opportunities and cautions.
This report helps readers to identify the ongoing trends in the market and anticipated growth in future depending upon changing market dynamics in coming years. The report will help existing distributors, manufacturers along with end users in large appliances division to align their market centric strategies according to ongoing and expected trends in the future
Large Appliances Market in China
China is the world most populous country and is home to more than 1.4 billion people. It is the second largest country in terms of economy based on nominal GDP (USD 11.4 trillion) and first in terms of PPP basis (USD 21.3 trillion) registering a growth rate of 6.9% in 2015 . It is spread over a huge landmass of more than 9 million square kilometer. Better economic conditions have led to rise in per capita income improving the consumer buying capacity in China. As people have more disposable income they use this fund to make their living conditions better and simpler. In China, per capita ownership of large appliances is comparable to developed world especially in urban areas.
Market for large appliances in China is very large and is home to some of the major global players. Demand for large appliances in China is mainly driven by replacement of existing old products with new ones. Demand for large appliances has increased from ~ million in 2010 to ~ million in 2015 registering a CAGR of ~%. In terms of revenue, market has increased from USD ~ billion in 2010 to USD ~ billion in 2015 registering a CAGR of ~%. Programs like Go rural subsidy, subsidized trade in home appliances, launch of energy saving products has helped large appliances companies to make substantial sales increase in 2011. Volume sales increased from ~ million in 2010 to ~ million in 2011. Rising rural income has created huge potential demand in rural areas. Minimum wages has increased by 24.0% at an average compared to 2010. Increased trend in consumer spending was observed in rural areas due to low cost of living compared to Tier 1 and Tier 2 cities, which supported the sales growth.
Major Large Appliances
Air conditioners: Market for large appliances in terms of volume is dominated by air conditioner sale. With market share of ~% in 2015, ~ million domestic air conditioners were sold in China. Demand was mainly driven by retail sale of artistic, high end intelligent air conditioner which accounted for ~% sales volume in 2015 registering year-on-year increase of ~%. Haier, Midea, Gree, Mitsubishi and Oaks are few of the major players in the market for air conditioners in China.
Television sets: Television sets have highest penetration per household among large appliances in China and accounted for ~% of total sales volume during 2015. The demand for large screen television sets in china has increased from an average of 37.8 inches in first quarter of 2012 to 45.3 inches in first quarter of 2016. Television market in china was dominated by Skyworth, Hisense, TCL, Changhong and others. Top three companies have accounted for a revenue share of more than ~% during 2015.
Refrigerators: Refrigerators have become a necessary household appliance especially in urban areas. In 2015, sales of refrigerator was mainly driven by growing preferences for multiple door and bi-fold refrigerators, with the share of multiple door refrigerators was recorded at ~% with YoY growth of 8.1% even though entire refrigerator industry showcased a decline.
Washing machines: Washing machines have lowest market share in terms of volume during 2015 with volume share reported at ~% of large appliances sale. Replacement demand for existing washing machines was the major reason for growing sales of washing machine. Replacement demand has accounted for more than ~% of total domestic sales of washing machine in China during 2015.
Future market for large appliances in China will be largely dominated by replacement of existing products. Many products sold during 2010 subsidy program will be nearing replacement. As demand in residential real estate picks up, demand for large appliances will also increase simultaneously. Programs like Income Doubling Plan, New Urbanization will lead to increase in demand. Improvement in quality, energy saving appliances, smart home technology and changing consumer preferences will drive the sale in future. Customization based on individual demand will lead to development of market segment with high margin as customers have shown willingness to pay premium if products meet their specific needs and requirement.
Key Topics Covered in the Report:
Haier Sales in China
China Large Appliances Market Genesis & Current Outlook
Future AC Sales China
Logistics Handling for Large Appliances in China
TV unit Industry Sales China
Best Selling Products for Large Appliances Market in China
Television Industry in China
Export and Import Scenario of Large Appliances in China
Skyworth Revenue Growth China
Snapshot of Online Sales for Large Appliances Market
Ankur Gupta, Head Marketing & Communications