In 2010, the urban home appliance market still had a solid foundation for growth. Looking back at the past three years of monthly sales data, we observed that the second half of 2009 saw a significant increase in the industry's growth rate, largely due to delayed demand from 2008. However, when considering the entire year, the annual growth rates for air conditioners and washing machines in urban retail sales were 16%, 5%, and 5% respectively—much lower than the robust figures seen in 2006 and 2007. This indicated that the market hadn't overly consumed future growth potential. As a result, 2010 was expected to maintain a strong growth base.
Moreover, due to the base effect, the first quarter of 2010 witnessed a sharp year-on-year increase in sales. While the growth was supported by previous momentum, the actual growth rate remained flexible, and market expectations were high. Nevertheless, success would depend on various factors, including policy impacts and consumer behavior.
The share of premium home appliances continued to rise, driven by both consumption upgrades and replacement demand. In 2009, the sales volume of inverter air conditioners, three-door refrigerators, and drum washing machines reached 16%, 16%, and 20% respectively, while their retail sales accounted for 22%, 41%, and 39%. These numbers showed a consistent upward trend over the past three years, with December marking a record high. The energy-saving subsidy policy further boosted the popularity of 1/2-class fixed-frequency air conditioners, making them the dominant choice in the market.
Throughout 2009, the overall prices of LCD TVs and air conditioners dropped by 6% and 31%, respectively, while refrigerators and washing machines saw price increases of 4% and 8%. Notably, the drop in air conditioner prices was much smaller than the cost reductions, leading to a significant improvement in gross profit margins.
A few years ago, "high-end home appliances" were considered a luxury only accessible to a small portion of society, as "high end" often meant "high price." However, in recent years, as home appliances expanded into rural areas and became more diversified, the concept of "high-end" has evolved. Consumers, now more focused on improving their quality of life and taste, have increasingly embraced these products. As a result, what was once a niche market is now becoming more mainstream, with more ordinary consumers enjoying the benefits of high-end appliances.
To support the continued growth of China’s home appliance market, the “China Home Appliance Market Research Group†was established through a collaboration between the Information Resource Development Department of the National Information Center and the China National Grid. This group serves as a business support unit for the China Household Electrical Appliances Association. Its mission is to leverage the combined strengths of both parties in retail market data monitoring, market research, online media, and direct links with home appliance manufacturers and retailers. It also aims to conduct in-depth research on the development of the home appliance industry, including markets, enterprises, brands, and distribution channels. Ultimately, it seeks to lead the high-end development of China’s home appliance market and promote the country’s transformation from "home appliance manufacturing" to "home appliance creation."
Huixian Xinwei Refractories Co. , https://www.xinweirefractory.com