Apr 29, 2021|
White Paper: Chinese Home Appliance Market May Usher in Sales Boom During Holiday
by Hui Zhang
An increasing number of Chinese consumers are considering replacing their home appliances during the upcoming 5-day May Day Holiday (May 1-5), as reflected in a white paper by JD.com and China Market Monitor, a research organization focusing on retail research in the Chinese consumption market. The white paper predicts that the large home appliance market size will reach up to RMB 52.3 billion yuan during the holiday with “high-end,” “intelligent,” and “innovative” being among the key words to describe consumers’ preferences.
These new preferences and the continuous market growth during the upcoming holiday can be traced back to sales performance of home appliances in 2020.
As Generation Z (people born from 1995 to 2010) are becoming the major consumption forces, their preferences for home appliances with intelligent and healthy features are driving a new trend. The white paper shows that in 2020, the market size of intelligent home appliances reached RMB 272.7 billion yuan, accounting for 43% of the total proportion of the home appliances market.
Various innovative home appliances are emerging in the market, and have become the new favorites for many Chinese consumers. According to the white paper, sales of floor cleaner have maintained a YOY growth rate of more than 20 times; and washing machines with dual washing and drying functions, 8K TV sets and sterilization and purification air conditioners have maintained a YOY growth rate of 395%, 268% and 171% respectively.
In addition to young consumers, Chinese families are also becoming smaller with only 1 or 2 members accounting for nearly 50%; and the number of small families is almost 2 times the amount in 2017. Home appliances targeting small families are also experiencing major growth. For example, the market shares of electronic rice cookers under 3L accounted for 15% of the whole market in 2020, with a YOY growth rate of nearly 54%.
Regarding the potential home appliance market share growth, the white paper predicted that TV, refrigerators, washing machines, and air conditioners will reach RMB 8.8 billion yuan, 11.2 billion yuan, 7.2 billion yuan, and 25.1 billion yuan respectively, with a YOY growth rate of 34%, 12%, 6%, and 21% respectively during the May Day holiday.
“As one of the major players in the home appliance market, JD is willing to work with brands to continuously promote the structural upgrade of the industry and lead the home appliance industry to renew in the direction of technology, intelligent products and innovation,” said Fan Xie, president of JD Home Appliance.