Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Excluded
- Subgroup definitions (by Monthly Household Income)
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast of total value sales of household appliances market, China, 2013-23
- Companies and brands
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- 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
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- Figure 3: Household appliance ownership, April 2018
- Almost half of consumers have an electric oven at home
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- Figure 4: Kitchen appliance ownership, April 2018
- Don’t belittle the motivation of improving life quality
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- Figure 5: Top two reasons for purchasing niche appliances, April 2018
- The battle between online and offline
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- Figure 6: Online vs offline, April 2018
- After-sale services matter most for online shopping
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- Figure 7: Criteria of online purchase, April 2018
- 50% say fresh supermarket is their main channel for purchasing food
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- Figure 8: Cooking and dietary habits – main channel for purchasing food, April 2018
- What we think
Issues and Insights
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- Chinese consumers’ adoption of niche household appliances
- The facts
- The implications
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- 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
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- Figure 10: Kitchen appliance ownership, by main channel for purchasing food, April 2018
- The implications
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- Figure 11: Delivery robot, China, 2018
The Market – What You Need to Know
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- A category showing moderate growth
- Demands in lower tier cities
- Good financial status and housing market are main forces
Market Size and Forecast
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- Household appliance market maintains steady growth
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- 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
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- Figure 13: Ownership of household appliances, by location, China, 2013-16
Market Drivers
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- Increasing disposable income
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- Figure 14: Per capita disposable income, by location, China, 2013-16
- A steadily rising housing market
- Extreme weather pushes consumption
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- 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
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- A less fragmented market
- Smart home is a future trend
Market Share
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- Big players encroach on market share further
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- Figure 16: Market share of top household appliance companies, China, 2016 and 2017
- Midea
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- Figure 17: Midea M-BOX cooking robot, China, 2017
- Gree
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- Figure 18: Gree conference of ‘revolution of energy-saving’, China, 2018
- Haier
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- Figure 19: Casarte C6 washer, China, 2018
- Xiaomi
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- Figure 20: Internal documentary of 8 years’ start-up of Xiaomi, China, 2018
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- Figure 21: Xiaomi’s new launch of air conditioner, China, 2018
Competitive Strategies
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- Smart home
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- Figure 22: Fotile FIKS, China, 2018
- Co-created model for big e-commerce platforms
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- Figure 23: Gree Kinghome 286 fridge, China, 2018
- Riding on buzz
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- Figure 24: Vatti refund notice of World Cup campaign, China, 2018
- Sentiment connection with appliances
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- Figure 25: First episode of Haier TVC ‘Home Appliance in Love’, Japan, 2018
The Consumer – What You Need to Know
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- 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
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- Over half of households have an air purifier at home…
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- Figure 26: Household appliance ownership, April 2018
- …with a significant differentiator by income level
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- 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
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- Figure 28: Household appliance ownership, by presence of children, April 2018
- Penetration opportunity in lower tier cities
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- Figure 29: Household appliance ownership, by city tier, April 2018
Kitchen Environment at Home
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- Overview of Chinese urbanites’ kitchens
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- Figure 30: Cooking and dietary habits – kitchen environment at home, April 2018
- Open kitchen represents a modern kitchen style
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- Figure 31: Cooking and dietary habits – kitchen environment at home, by select demographics, April 2018
Kitchen Appliance Ownership
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- Opportunities still left for common kitchen appliances
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- 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
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- Figure 33: Kitchen appliance ownership, by kitchen environment at home, April 2018
- Microwave is as necessary as rice cooker to affluent households
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- Figure 34: Kitchen appliance ownership, by monthly household income, April 2018
- Versatility of microwave does not dampen the growth of an electric oven
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- 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
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- Figure 36: Kitchen appliance ownership, by presence of children, April 2018
- Kitchens are equipped alike across city tiers
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- Figure 37: Kitchen appliance ownership, by city tier, April 2018
Reasons for Purchasing Niche Appliances
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- Improving life quality emerges as the top motivator
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- Figure 38: Top two reasons for purchasing niche appliances, April 2018
- Which appliances make affluent households feel life quality improved most?
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- 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?
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- Figure 40: Purchasing niche appliances to improve life quality, by city tier, April 2018
- Energy/time saving matters more for sweeping robots and dishwashers
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- 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
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- Figure 42: Reasons for purchasing electric oven, blender and washer dryer, April 2018
Online vs Offline
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- Still used to in-store shopping
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- Figure 43: Online vs offline, April 2018
- Who are more likely to shop online?
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- Figure 44: Online store as first choice for purchasing household appliances, index against total, by select demographics, April 2018
Criteria of Online Purchase
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- After-sale service is the most important factor of online shopping
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- Figure 45: Criteria of online purchase, April 2018
- It can still appeal to broader consumers without price competition
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- Figure 46: Criteria of online purchase – TURF analysis, April 2018
- Buyers’ reviews play a more critical role for consumers in tier one cities
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- Figure 47: Criteria of online purchase, by city tier, April 2018
Cooking and Dietary Habits
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- Taking cooking responsibility when getting mature
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- 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
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- Figure 49: Cooking and dietary habits – main channel for purchasing food, April 2018
- Skincare products are saved in fridge as well
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- Figure 50: Cooking and dietary habits – items saved in refrigerator, April 2018
- Different layouts in fridge by region
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- Figure 51: Cooking and dietary habits – items saved in refrigerator, by region, April 2018
- High-income households demand more separated areas in fridge
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- Figure 52: Cooking and dietary habits – items saved in refrigerator, by monthly household income, April 2018
Meet the Mintropolitans
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- Air purifier becomes a necessity for Mintropolitans
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- Figure 53: Household appliance ownership, by consumer classification, April 2018
- Mintropolitans skew to Western kitchen style
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- Figure 54: Cooking and dietary habits – kitchen environment at home, by consumer classification, April 2018
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- 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
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- Figure 56: Online vs offline, by consumer classification, April 2018
Appendix – Market Size and Forecast
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- Figure 57: Total value sales of household appliances market, China, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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