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Driving Growth and Innovation: The Future of the Home Appliance Industry in China

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From January to June this year, enterprises in the home appliance industry achieved revenue of 914.5 billion yuan, a year-on-year increase of 7.1%; realized profits of 67.49 billion yuan, a year-on-year increase of 20.2%. Facing the future, as the pace of promoting inventory renewal, expanding high-quality supply, and guiding home appliances to the countryside continues to accelerate, the development potential of the home appliance industry will be further stimulated.

Precisely planned paths and superimposed mop self-cleaning, the upgraded version of the sweeping robot makes daily cleaning easier; the air purifier equipped with a new sensor not only has low noise and low energy consumption, but also can remove aldehydes and send air remotely with one key; real-time video guidance, automatic steam Clean, the new all-in-one steamer, roaster, and fryer makes kitchen novices love cooking… Walking around the home appliance store, there is a dazzling array of different categories, and new ideas rush to your face.

The continuous innovation of major home appliance brands reflects the surging vitality of the home appliance industry. As a traditional advantageous industry in our country, the home appliance industry is also an important engine for the steady growth of the industry and the promotion of consumption. Since the beginning of this year, what new features have the home appliance industry presented? Where should we start to better stimulate the role of the home appliance market in promoting consumption and expanding domestic demand? The reporter interviewed industry experts and some home appliance companies.

Improve innovation ability

Develop whole house intelligence

Data show that from January to June this year, enterprises in the home appliance industry achieved revenue of 914.5 billion yuan, a year-on-year increase of 7.1%; realized profits of 67.49 billion yuan, a year-on-year increase of 20.2%.

Where does the growth resilience of the home appliance industry come from? From the continuous innovation towards mid-to-high end.

“Since the beginning of this year, the demand for high-end product orders has been strong. In the second quarter, online sales of smart air purifiers increased by 8.6% year-on-year, and the growth was mainly contributed by mid-to-high-end models above 3,000 yuan.” Lu Yi, product manager of Xiaomi Environmental Appliances, introduced.

“Currently, my country’s home appliance market has entered a stage of upgrading characterized by high-end.” The relevant person in charge of Hisense Video Technology Co., Ltd. said.

According to Xu Dongsheng, vice chairman of the China Household Electrical Appliances Association, since the beginning of this year, the structural transformation and upgrading trend of China’s home appliance industry has become more obvious. The supply of high-end products featuring green intelligence is sufficient and effective, driving the industry to operate steadily and steadily.

Walking into Huawei’s Ark No. 1 space intelligent open laboratory, with a handheld smart central control screen, the whole house’s home appliances are interconnected: when watching TV, one-click to open the viewing mode and enjoy immersive audio and video; when sleeping, the voice wakes up the AI ​​assistant , remote control lighting, air conditioning…

“From smart home appliances to whole-house intelligence, the growth space of the home appliance industry is constantly expanding.” Shao Yang, president of the whole-house smart product line of Huawei Terminal Co., Ltd., said that relying on the Hongmeng ecology, the various smart devices in the living space are organically connected to better meet the needs of customers. Meet people’s demand for intelligent life. As of the end of June this year, Huawei Smart House has more than 200 stores across the country, and more than 5,800 smart items can be connected to Smart House.

Haier created the whole-house intelligent scene brand “Triwing Bird”, and Midea released the “Midea Home” whole-house intelligent product system… “The cooperation of various intelligent products and the integration of more powerful intelligent capabilities are making smart home appliances more Understand users.” Xu Dongsheng said that the transformation of whole house intelligence, while bringing personalized and customized experience to users, has also become a new engine driving the growth of the home appliance industry.

Promote inventory update

Improve the application ecology

Data show that from January to June, the sales of household appliances and audio-visual equipment were 427 billion yuan, and the year-on-year growth rate changed from a decline of 3.9% in the whole of last year to an increase of 1.0%. “The efficiency level of major home appliance companies has improved significantly, but there is still room for further expansion of home appliance consumption.” Xu Dongsheng said.

“The penetration rate of my country’s mature household appliances is relatively high, and industry demand comes more from stock updates.” Xu Jianwei, a researcher at the Industrial Institute of the China Academy of Macroeconomic Research, said that as the durability of household products continues to improve, the product update cycle is longer. If the product is new Functions cannot effectively improve consumption pain points, and the demand for replacement will shrink.

Taking air purifiers as an example, “With the continuous improvement of air quality and stricter control over the release of formaldehyde from building materials, the demand for product formaldehyde removal has gradually weakened.” Lu Yi said that the company is currently developing more types of gas sensors and filtration technologies. Add intelligent standby function, reduce the frequency of filter element replacement, thereby reducing the cost of use.

More brands are using integration to rejuvenate traditional home appliances. The Casarte Nebula air conditioner integrates functions such as air conditioner, humidifier, purifier, sterilizer, and air fan, so that one machine can be used in all seasons; Hisense has integrated an ultrasonic eyeglass washing device on the basis of the original product, and the product can not only wash clothes but also clean glasses , Jewelry… “The integration of functions is not a random combination of home appliances, but to meet the needs of users to the greatest extent according to the user’s operating habits in specific scenarios.” Xu Dongsheng said that integration is releasing more room for growth in traditional home appliances .

“The continuous expansion of new categories, new scenarios and new applications is the growth potential of the home appliance industry.” Xu Jianwei said that at present, intelligent innovation in the field of home appliances is active, but home appliances of different brands lack connection or even compatibility in the application ecology, becoming A short board that hinders the consumption of home appliances.

There are more and more intelligent devices of all kinds, and it is inevitable for the development of smart home appliances to connect ecological islands and realize cross-brand interconnection. “The construction of the whole house intelligence is inseparable from the participation of home appliances, furnishing, communications, Internet, content service providers and other parties.” Xu Dongsheng introduced that in June this year, China Household Electrical Appliances Association and China Communications Standards Association jointly released the “China Smart Home Interconnection White Paper (2023) “, to further promote smart home interconnection standards from “yes” to “good”.

Expand quality supply

Expand the rural market

As the main area of ​​traditional consumption, home appliance consumption is also an important driving force for the recovery and expansion of consumption. How do you view its growth prospects?

“From the perspective of industry trends, the market penetration rate of smart products in major home appliances such as refrigerators, air conditioners, and washing machines is increasing year by year,” Xu Dongsheng said. Relevant data show that the scale of my country’s smart home appliance market will exceed 550 billion yuan in 2021, exceed 650 billion yuan in 2022, and is expected to exceed 730 billion yuan in 2023.

“Compared with some developed countries, there is still a gap in the level of ownership of smart home appliances per 100 households in my country, and there is a lot of room to increase its penetration rate. The growth potential and driving force of home appliance consumption are strong.” Xu Jianwei said.

Stepping into the stock market, how can the home appliance industry move from high-speed growth to high-quality development, and better stimulate the consumption potential of home appliances?

On the one hand, continue to expand high-quality supply, promote the upgrading of smart home appliances and increase the added value.

“With the continuous optimization of the competition pattern of the home appliance industry, the industry concentration has further increased. Driven by leading companies and innovative companies, the proportion of green smart home appliances has increased significantly, providing a solid support for the expansion of home appliance consumption.” Xu Jianwei pointed out that, with home appliance consumption To adapt to the upgrade, it is necessary to implement precise policies in terms of home appliance replacement, promotion of smart integrated home appliances, and recycling of waste home appliances.

Recently, the “Notice on Measures to Restore and Expand Consumption” clearly stated that products such as smart home appliances, integrated home appliances, and functional furniture should be promoted to improve the level of intelligent and green home furnishing. He Yaqiong, director of the Department of Consumer Goods Industry of the Ministry of Industry and Information Technology, said that the next step will be to support the home appliance industry in promoting customization and lean development centered on users, realize real-time response to demand, real-time visualization of the whole process, and seamless connection of resources, and continuously introduce more scene-oriented and intelligent products. Specialized and serialized home appliances.

On the other hand, continue to expand the rural market and accelerate the promotion of green smart home appliances to the countryside.

As farmers’ income continues to increase and living standards continue to improve, the rural market is becoming a new growth point to stimulate demand for home appliances. Data show that in the first five months of this year, the sales of home appliance trade-in and green smart home appliances to the countryside increased by 83.7% and 12.6% respectively year-on-year. Xu Jianwei proposed that we should speed up the construction of multi-level consumer centers, vigorously promote green smart home appliances to the countryside, and better improve the after-sales service system for rural home appliances.

original title:

In the first half of the year, the profits of enterprises in the household appliance industry increased by 20.2% year-on-year

Transformation and upgrading of home appliances stimulate consumption potential (Economic Focus)

2023-08-11 00:02:00
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