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 strong rebound in the industry, largely due to deferred demand from 2008. While the annual growth rates for air conditioners and washing machines in 2009 were 16%, 5%, and 5% respectively, these figures were significantly lower compared to the robust performance seen in 2006 and 2007. Importantly, the urban home appliance market did not overdraw its future potential in 2009, which means that 2010 was well-positioned for continued expansion. Additionally, the base effect contributed to a sharp increase in sales during the first quarter of 2010. Although the market had a growth foundation, the rate of growth remained flexible, and expectations from consumers were high. However, actual performance would still depend on various factors such as policy implementation and market dynamics.
The share of premium appliances in the market has been steadily rising. This trend is driven by both consumer upgrading and the need for product renewal. 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 figures have shown consistent growth for three consecutive years, with December marking a record high. The energy-saving subsidy policy also played a key role, making fixed-frequency 1/2-class air conditioners the dominant choice in the market.
Throughout 2009, the prices of LCD TVs and air conditioners dropped by 6% and 31% respectively, while refrigerator and washing machine prices increased by 4% and 8%. Notably, the price decline for air conditioners was much smaller than the cost reduction, leading to a significant improvement in gross profit margins.
A few years ago, "high-end home appliances" were seen as luxury items accessible only to a small segment of society. This perception stemmed from the fact that "high end" was often synonymous with "high price." However, in recent years, as home appliances expanded into rural areas and became more diverse and specialized, the concept of "high-end appliances" has evolved. As consumers' incomes rise and they place greater emphasis on quality of life and taste, these products are no longer reserved for the elite. Instead, they are increasingly entering the homes of ordinary people, expanding the consumer base and allowing more individuals to enjoy the benefits of premium appliances.
To further support the development of China's home appliance market, the "China Home Appliance Market Research Group" was established under the collaboration of 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 primary goal is to leverage the combined strengths of both parties in retail data monitoring, market research, online media, and direct links with home appliance manufacturers and retailers. By focusing on the development of the industry, market trends, enterprises, and brand strategies, the group aims to lead the high-end evolution of China's home appliance sector and promote the country's transformation from "home appliance manufacturing" to "home appliance creation."
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