In 2021, the sales data of home appliances in 2020 have been published, and some home appliance enterprises have also predicted the sales data of last year. The reporter from Beijing Business Daily found that the export of home appliances in 2020 has achieved good results, but the domestic market is not satisfactory. In the view of industry insiders, on the one hand, this is because the domestic household appliances have entered the stock competition and the market demand is weak; on the other hand, in addition to the strong demand of individual emerging categories, the traditional household appliances market has been saturated. Therefore, how to stimulate the domestic demand market in 2021 has become a barrier that household appliance manufacturers can not get around.
According to AVC’s Omni channel data, in 2020, China’s home appliance retail market will reach 705.6 billion yuan, a year-on-year decrease of 11.3%. Specific to the major categories, affected by the epidemic, in addition to dishwasher, integrated stove and other emerging categories, almost all traditional household appliances have experienced a decline.
According to the data released by Ovi cloud, in 2020, the retail volume of China’s air conditioning market was 51.34 million units, a year-on-year decrease of 14.8%, and the retail volume was 154.5 billion yuan, a year-on-year decrease of 21.9%; the sales volume of purifier market was 6.26 billion yuan, a year-on-year decrease of 30.9%, and the sales volume was 3.795 million units, a year-on-year decrease of 18.5%; the retail volume of China’s color TV market was 44.5 million units, a year-on-year decrease of 9.1%, and the retail volume was The retail volume of refrigerator market was 32.56 million units, a year-on-year decrease of 0.7%, and the retail volume was 90 billion yuan, a year-on-year decrease of 1.4%; the retail volume of kitchen appliances was 56.63 billion yuan, a year-on-year decrease of 11.3%; the retail volume of electric water storage heater was 26.1 billion yuan, a year-on-year decrease of 13.7%.
In sharp contrast, the export situation of China’s household appliances. Customs data show that in December 2020, about 340 million sets of household appliances were exported, and from January to December 2020, about 3.39 billion sets of household appliances were exported, up 14.2% year on year.
Among them, in December 2020, China exported 3.57 million air conditioners, with a year-on-year growth of 26.9%; from January to December, China exported 47.21 million air conditioners, with a year-on-year growth of 13.9%; from December, China exported 6.48 million refrigerators, with a year-on-year growth of 58.7%; from January to December, China exported 69.54 million air conditioners, with a year-on-year growth of 35.6%; from December, China exported 1.95 million washing machines, with a year-on-year growth of 3.1%; from January to December, China exported 21.54 million refrigerators, with a year-on-year growth of 2.2% 8.13 million units, a year-on-year increase of 6.3%. From January to December, the cumulative export of 99.94 million units, a year-on-year increase of 6.8%.
The export data of home appliance brands are also increasing significantly. According to the annual cumulative sales data of brand TV sets released by TCL in 2020, the annual cumulative sales of brand TV sets increased by 15.9% year on year to 23.93 million sets. In particular, TCL TV has performed well in overseas markets. In 2020, the annual sales of TCL brand TV sets increased by 27.2% year on year to 17.13 million sets. Among them, the annual sales volume in North America increased by 25.4% year-on-year, while that in Europe increased by 66% year-on-year. The fast-growing regions include Japan, Brazil, Australia, Indonesia and Russia, with annual growth rates of 181.3%, 67.9%, 45.9%, 40.8% and 31.4% respectively.
According to Midea Group’s 2020 semi annual report, in the first half of last year, the company’s overseas orders grew by 10% year on year. Galanz has also provided data before. Since June last year, the export of Galanz’s household appliances has maintained a positive growth, and the export volume in July increased by nearly 60% year on year. According to incomplete statistics, from January to July last year, the export volume of Galanz increased by 8.6% year on year.
The market is weak
In fact, both the decline in domestic sales and the sharp increase in exports were obviously affected by the epidemic situation last year.
Major general Ding, an industry and economic observer, pointed out that the epidemic has brought about four associated effects: first, the supply chain and terminal production are not developing smoothly, especially in the first quarter, which has affected the market supply; second, the offline channels are blocked; third, the corresponding logistics, installation and other services are difficult to carry out, which have affected the access; fourth, the reduction of consumer holding money has affected consumer demand.
Liang Zhenpeng, a home appliance analyst, also said that in the first half of 2020, many regions adopted strict epidemic prevention and control policies, which made transportation, factory production and logistics distribution abnormal for one or two months, seriously affecting the production and sales of home appliances in the domestic market. “Because of the epidemic, the income of many consumers has been affected to a certain extent. Their demand for home appliances has decreased, which has delayed the plan of upgrading home appliances and affected the overall sales of the home appliance market.”
This can be seen directly from the data of the first quarter of last year. According to Ovi cloud data, the retail scale of domestic home appliance industry in the first quarter of last year was 120.4 billion yuan, a year-on-year decrease of 35.8%; however, the market recovered rapidly in the second quarter, with the total retail volume of home appliance market reaching 248.6 billion yuan, double that in the first quarter, a year-on-year increase of 2.64%, and the scale has recovered to the level of the same period in 2019.
In addition to the epidemic factors, the domestic sales situation of household appliances is not optimistic, which is also related to the household appliance industry itself. “China’s China novel coronavirus pneumonia market is already very saturated, highly mature, highly competitive and heavily overloaded. Before the new crown pneumonia epidemic, China’s household electrical appliance market in 2019 was also declining.” Liang Zhenpeng said.
Major general Ding believes that in addition to the epidemic situation, the performance of domestic sales of household appliances in 2020 is also a kind of inertia: firstly, the penetration rate and penetration rate of some major categories are not low, and the demand is temporarily saturated; secondly, due to the limited innovation of new products, the ability to stimulate new enthusiasm is also limited; finally, a considerable number of household appliances are still in service.
However, although the overall performance of the domestic market of household appliances is not ideal, the differentiation between categories is also obvious. Some health household appliances still have relatively considerable performance, such as dishwasher and disinfection cabinet. In addition, many categories have excellent performance in online channels, and small household appliances with low unit price have achieved good results with live broadcast e-commerce.
With the rapid change of retail environment, especially in the new pattern formed in the post epidemic era, many home appliance manufacturers began to live with their products. For example, Gree Electric completed 13 live broadcasts last year, and Dong Mingzhu, chairman of Gree Electric, went to battle in person, walking through Ganzhou, Luoyang, Guilin, Dezhou, Linyi, Macao, Nanjing and other places.
At the same time, the home appliance industry also ushered in favorable policy support. For example, the Ministry of industry and information technology has issued a document to stimulate the consumption of household appliances; Guangdong Province has launched a new round of policy of sending household appliances to the countryside; the national development and Reform Commission has vigorously developed a new mode of household appliances recycling.
How to pull
In 2021, the epidemic situation and market saturation are still the problems that household appliance manufacturers will continue to face, so how to stimulate and stimulate the domestic market?
Beijing Business Daily reporter interviewed Gree Electric, TCL, Hisense, Haier and other home appliance manufacturers. The person in charge of Gree Electric told Beijing Business Daily that the company will still promote sales through live broadcast activities. As of press release, several other manufacturers did not give a reply.
Major general Ding predicted that the domestic home appliance market in 2021 should have a visible improvement compared with that in 2020, but the possibility of a sudden surge is not big, and the trend is mainly steady and rising. In terms of product ability and experience, health attributes can be the focus of manufacturers’ efforts; home appliance manufacturers can further strengthen their attention to online channels, in addition to simple sales, they can also strengthen interaction to improve stickiness; in addition, manufacturers can provide value-added services, strengthen contact with users, and realize sustainable benefits, such as content services of color TV sets and food materials services of refrigerators And so on.
“Of course, here are some details to remind manufacturers not to rely too much on the price for quantity model. On the one hand, it may cause disorderly competition, on the other hand, it is not conducive to long-term development. At the same time, when promoting health products, we should avoid exaggerating publicity.” Major general Ding said.
Liang Zhenpeng believes that in 2021, home appliance manufacturers should transform to medium and high-end products as soon as possible. In the case of little growth in sales volume, their products mainly transform to the direction of intelligent, energy-saving, environmental protection and embedded integration. For example, TV sets transform to high-end products such as lightweight, OLED, laser TV or miniled and microled. In this way, even if the sales volume basically does not change, because The average sales of products will increase, and the total sales of the whole household appliance market will also increase.
In addition, “home appliance manufacturers should continue to use a variety of new mobile Internet tools, such as trying to use the sales platform of webcast and mobile Internet, speed up the transformation to mobile Internet e-commerce, flatten the sales channel as soon as possible, directly ship goods to retailers, retailers directly ship goods to consumers, and bypass the wholesale agent link In order to improve the cost performance of products, part of the profit space will be given to consumers, and part of the redundant channel links will be cut, so as to reduce the price increase cost of channels, improve the cost performance of products, and promote consumers to buy. Liang Zhenpeng said.
It is worth noting that with the decline of the growth rate of the retail market of household appliances, the growth of most household appliance enterprises will also enter the bottleneck. The future of most household appliance enterprises is facing an extremely practical problem, that is, whether they can effectively build the second growth curve. In short, if diversification can be successful, the successful transformation of household appliance enterprises is very conducive to the improvement of performance. Ovi cloud pointed out that there is a fault between the first growth curve and the second growth curve. They are usually not continuously linked together. Under the impact of the epidemic, many enterprises began to try to build the second growth curve and cross the above discontinuous areas.
Editor in charge: Tzh