Apr 20, 2022|

China’s Commercial Kitchen Appliances Market Sees Boom: One-Stop Service Solution in High Demand


Vivian Yang

China’s market for commercial kitchen appliances is rapidly moving forward as the COVID-19 situation gradually normalizes in China, while the foodservice industry is projected at a more than 10% growth rate in the coming years, according to the latest white paper on China’s commercial kitchen appliances market released by JD.com and the market research firm iResearch on April 19th.

Based on an in-depth survey, the white paper showed that large-size commercial kitchen appliances used for food processing, display and storage are one-third of the cost of a new restaurant, and the overall expenses on kitchen appliances account for approximately 7 percent of a restaurant’s revenues, whereas more than half of the surveyed owners expressed to increase their procurement budget on relevant equipment in the near future.

JD’s sales data showed that in the first quarter of 2022, commercial display fridges, refrigerators, disinfection cabinets, water boilers and electric convention ovens were the top categories in demand and account for over 50% of sales of this segment, with each category making up 25.4, 11.6,8.2,5.1 and 4.6 percent of sales respectively.

Both high-tier (up by 105.6% YoY) and lower-tier (up by 132.3% YoY) markets achieved robust growth with the latter showing a stronger momentum. Compared with the full year 2021, consumption from lower-tier cities in Q1 was up by 5.1 percent, accounting for nearly 70 percent of the whole year expenditure on this segment.

The introduction of smart, environmentally-friendly and standardized products is boosting the market demand, as foodservice enterprises look to upgrade the functions, appearance and services of their kitchen equipment, noted the white paper.

“Service is what enterprise users value the most as they make procurement decisions,” noted Hui Liu, director of Consumption and Industry Development Research Institute of JD.com. “The capabilities to provide more efficient, convenient and flexible one-stop service that can help them with product introduction, trials, installation trainings, equipment maintenance and more services before, during and after sales will be much desired and a key to success in this market.”

As a response, JD Business, the enterprise service business unit of JD.com has joined hands with brand partners of commercial kitchen appliances such as Lenovo, MAXHUB, Lecon, DEMASHI and others, to launch a one-stop worry-free solution for foodservice enterprises, in which at one transparent product and service rate, clients will be provided customized services ranging from onsite survey, design, installation, provision of auxiliary materials and more to set up their kitchen space and management.

Moreover, by leveraging JD’s advantages in digital supply chain and technologies, foodservice enterprises can first utilize the site’s VR and 3D-powered experience space to build their kitchens virtually and get advice from professional designers with tailored need, measurements and more, then they may place orders online to be on track of the whole service process while enjoying better price, less time consumption and higher efficiency same as what JD is best known by Chinese consumers.