Mar 3, 2020|
JD.com Tops Market Share for Online Home Appliances in China
by Tracy Yang
JD.com topped online sales of home appliances in 2019, according to a report on China’s Home Appliances Market released by the China Electronic and Information Industry Development Research Institute. In the report, JD accounted for 22.39% of the market share, while SUNING and Tmall ranked second and third, respectively.
The report points out that China’s home appliance retail sales market reached RMB 891 billion in 2019 with the penetration of online sales reaching 41.17%, the first time to surpass 40%.
Air conditioners accounted for the largest share of this market, with retail sales of large air conditioners reaching RMB 216 billion, accounting for 24% of overall sales. Retail sales of color TV sets, refrigerators, washing machines, kitchen appliances and household appliances reached RMB 152 billion, RMB 99.5 billion, RMB 78.1 billion, RMB 164.4 billion and RMB 180.3 billion, respectively.
The outbreak of COVID-19 has not only had a negative impact on the sales of offline retailers, but also negatively impacted online sales of home appliances. JD.com recently announced several measures to support home appliance brands and merchants throughout the COVID-19 epidemic, including lowering barriers of entry for merchants to join JD.com, reduction of platform operating fees and providing support to partners, including logistics, advertising, health, finance, traffic and others.
Lei Xu, CEO of JD Retail believes consumer demand for home appliances is still robust, as recent consumer surveys indicate. “When the epidemic subsides, consumer demand will return,” said Xu during JD’s Q4 and 2019 annual results earnings call yesterday.