In 2020, the sudden epidemic situation will hit the kitchen and bathroom electrical appliance industry, which was originally in the period of stalling and shifting development, and the overall market will decline year on year. The offline channels of major kitchen and bathroom electrical appliances brands will be seriously affected, and the kitchen and bathroom e-commerce platform will also be under pressure. With the effective implementation of domestic epidemic prevention and control work, the kitchen and bathroom appliance market is facing greater opportunities and challenges in the post epidemic era. How to develop the industry rapidly, healthily and stably has become a common topic in the industry.
On August 27, at the 2020 China kitchen electricity industry summit forum, Jingdong electric appliances and zhongyikang jointly released the “2020 kitchen and toilet market insight report”, mainly from the perspective of China’s economic situation and the overall development of the kitchen and bathroom market in 2020, discussed the kitchen and bathroom industry competition and product trend, and made a forecast on the future industry development and layout direction. Details of the report are as follows:
In recent years, the global economic friction has been increasing, and the growth rate of domestic GDP has gradually narrowed. In 2019, the growth rate is only 6.1%, which is a new low in recent years. The general situation is not good, which aggravates the stall of the household appliance industry. In this situation, the traditional profit highland kitchen and bathroom appliances have entered the eyes of various companies, whether it is a comprehensive enterprise Midea, Haier or Internet new enterprises Xiaomi, yunmi all enter this highland and grab the cake.
After years of development, the kitchen and bathroom electrical appliance industry has entered a quagmire moment. It has entered an era of coexistence of traditional products such as smoke stove stock update and incremental expansion of new products such as dishwasher. This is also the shift period from daily necessities to quality-of-life products. Meanwhile, it is also a time period for consumers to change their times. Under the birth of the epidemic situation, kitchen and bathroom electrical appliances are already in progress This kind of change will be more complicated.
1、 Kitchen and bathroom market: under pressure from various parties, kitchen and bathroom industry moves forward difficultly
Under the attack of the epidemic, the macro-economy is under pressure, and all industries are in recession. From the data of National Bureau of statistics, from January to June, the sales area of commercial housing decreased by 7.6% year-on-year. As a strong related industry, kitchen and bathroom appliances, according to zhongyikang’s calculation data, dropped by 20% in the first half of the year, with a scale of only 97.9 billion yuan. The kitchen and bathroom industry is sailing against the current and struggling to move forward.
1. The situation is grim and the macro environment is declining
According to the prediction of the International Monetary Fund, the global economy is expected to decline by 4.9% in 2020, and China is the only country that is expected to achieve positive growth, and the annual growth rate is expected to be 1%. However, the friction between China and the United States is becoming more and more serious, the world situation is coming, the domestic epidemic situation is normalizing, the economic growth momentum is insufficient, and the domestic and foreign risk challenges are obviously increasing. In the first half of 2020, the domestic GDP will decline by 1.1% year-on-year 6%, the total retail sales of consumer goods was 17225.6 billion yuan, a year-on-year decrease of 11.4%. The main indicators were in an unprecedented low tide period, and residents’ consumption was low. In the first half of the year, residents’ income was 15666 yuan, down 1.3% year-on-year. The development of consumer durable goods appliance industry will be greatly affected by the poverty of the country and the lack of people.
2. If walking on thin ice, the home appliance industry is in danger again
The home appliance industry is in a period of stagnation. According to zhongyikang’s calculation data, since 2018, the overall development of home appliances has entered a stagnant period. In that year, the growth rate of retail sales was only 2%, showing a 3.2% decline in 2019, and a 19% decline in the first half of 2020. The epidemic has a profound impact on the home appliance industry. In terms of categories, black, white, kitchen and bathroom, and small household appliances all performed poorly. In 2019, the retail sales of small household appliances increased slightly by 1%, and other categories all declined to varying degrees. In the first half of this year, the scale of kitchen electricity was only 97.9 billion yuan, down 20% year on year, and the scale returned to the first half of 2015.
3. The road ahead is not clear, the kitchen and bathroom industry stalls and changes gears
From 2013 to 2017, the growth rate of retail sales of kitchen and bathroom electrical appliances market showed a high growth rate of more than 10%. However, since 2018, it has entered the stall period, and the high growth is no longer. In the first half of this year, the scale of the decline was as high as 20%; the main categories of kitchen and bathroom market, such as hot and clean tobacco stoves, showed a declining trend, while the new categories of integrated cookers, dishwashers, electric ovens, embedded all-in-one machines began to enter the center of the stage, leading the growth of the kitchen and bathroom market. It was just when the kitchen and bathroom market upgraded from necessities to quality-of-life products Yikang estimates that in the first half of 2020, the scale of dishwasher will reach 3.9 billion yuan, with a year-on-year growth of 20.2%; the scale of embedded all-in-one machine will be 1.47 billion yuan, with a year-on-year growth of 48%. However, the scale of water heater is as high as 27.2 billion yuan, with a year-on-year decrease of 17%, and the scale of range hood will reach 16 billion yuan, with a year-on-year decrease of 19%. The industry is under pressure.
2、 Quality shift into power, kitchen is becoming the second center of family
The kitchen and bathroom appliances enter the shift period. First, the traditional kitchen and bathroom appliances such as smoke stove heat, which have been developing rapidly for many years, are facing the internal product iteration and core performance upgrading. Secondly, the emerging category status of kitchen and bathroom appliances has gradually been improved, such as dishwasher, integrated cooker, embedded integrated machine, etc., not only leading the whole kitchen and bathroom in growth rate, but also approaching traditional products on scale. This is the trend brought by the national economic development and the improvement of people’s living standards, and the basic atmosphere of the kitchen and health industry.
1. Traditional kitchen electricity has entered the stock age, and the proportion of high value-added products has increased
As a representative of the basic necessities of traditional kitchen electric appliances, according to the number of 100 households published by the National Bureau of statistics, the number of 100 households with range hood reached 56.4 units in 2018. Compared with the same household with one machine refrigerator, the number of 100 households of the latter has reached 98.8 units, with a big gap. However, from the perspective of urban and rural areas, the main gap lies in the rural areas, where only 26 sets of lampblack machines are owned by 100 households, while 95.9 sets of refrigerators are owned by 100 households in rural areas. For a long time in the future, mainstream products such as smoke stoves will be in the situation of stock updating, supplemented by incremental expansion, and the main urban areas will be renewal areas, while the rural areas will be slowly increasing.
From the data of zhongyikang retail monitoring and Jingdong Mall, in the first half of this year, the upgrading of core performance of traditional kitchen electric appliances has become a major trend in the market. The proportion of the sales of online range hood with more than 19m3 / min air volume increased from 34% to 49%, the proportion of offline gale volume increased from 40% to 46%, and the proportion of products with primary energy efficiency (thermal efficiency ≥ 63%) of gas stoves increased online It’s 2% to 59%, and offline it’s 6% to 55%. The proportion of products with the maximum static pressure of range hood above 400pa in Jingdong Mall reached 27%, of which the proportion of products above 700pa accounted for 11%, which also proved that the added value of traditional kitchen and bathroom electrical products represented by smoke stove was continuously improved, and the core performance was gradually optimized.
2. New categories of incremental expansion, kitchen and bathroom quality upgrade in the near future
New categories are leaping to the stage center of kitchen and bathroom industry. According to the monitoring data of zhongyikang, the performance of emerging products was remarkable during 618. The scale of online embedded all-in-one machine reached 230 million yuan, up 117% year-on-year. The sales of independent dishwasher reached 200 million yuan, with a growth rate of 261%. During the promotion period, the sales of integrated stoves reached 590 million yuan, up 44% year-on-year. According to the data of Jingdong, the main brands gain more profits. During 618, Midea, Fangtai, boss and Siemens all grew by more than 50%.
The rise of new categories is the result of the improvement of living standards of Chinese residents. The health and convenience of dishwasher, the diversified cooking methods of all-in-one machine and the integration of space all meet the needs of residents for a better life. In the past, consumers basically bought tobacco stoves and other necessities before they needed to buy them. Now they are consciously purchasing kitchen and bathroom appliances such as dishwasher, which is also the process of consumers’ mental transformation.
3. Traditional channels are impacted and online e-commerce status is improved
In the kitchen and bathroom appliance market, offline channel has always played an important role. According to zhongyikang’s calculation data, in 2016, the offline market share of kitchen and bathroom electrical appliances was 82%, that is, more than 80% of the products were produced offline. However, by 2019, this proportion has dropped to 69%, and the offline proportion is expected to drop to 61% in 2020, while the proportion of online e-commerce market will exceed 40%.
In addition, judging from zhongyikang’s calculation data and the growth of kitchenware products in Jingdong Mall in the first half of the year, the offline market suffered heavy losses, with a basic decline of more than 20%. On the contrary, the growth rate was huge. Among them, the retail sales of Jingdong dishwasher, integrated stove and gas stove increased by 58%, 57% and 34% year-on-year.
According to online survey data during the outbreak of zhongyikang, the proportion of consumers on the middle line of purchasing channels is increasing, 41% of respondents increase the frequency of online shopping, and 38% of respondents increase the purchase frequency of comprehensive e-commerce platforms such as JD; according to the data of JD, the sales of all platforms in JD home during the epidemic period increased by 470% compared with last year.
During the reform period of kitchen and bathroom appliances, channels have also begun to change themselves. For example, Jingdong has increased the number of offline stores, purchased five stars, accelerated the expansion of township stores, combined with Wal Mart, Gome, etc., to turn the crisis into opportunity, and want to go even higher; at the same time, many brands are increasing online investment, such as vantage, Martian, boss, Fangtai, etc., but at the same time, they are also adding offline experience stores, intending to overtake in a curve 。
4. Towards the whole house, the kitchen is becoming the second center of the family
In view of the consumer pain point, the reasonable integration of household appliances into the scene of family life will be the inevitable way to nurture the future of kitchen and bathroom appliances. The service scene of the product must be clear. The water heater moves from the bathroom, kitchen and living room to the whole house hot water; the range hood goes to the kitchen cooking center; in addition, the water center and the cleaning center build the second center of family life to meet consumers’ cooking, social, parent-child and other multi-dimensional needs.
According to the data of Jingdong Mall, the share of intelligent products is 17.9%, and the proportion of high-end products is 10.7%. The proportion of hand waving induction and intelligent app of kitchen and bathroom appliances has increased significantly since 2018, with the proportion of about 20% in the first half of 2020. According to the monitoring data of zhongyikang, the proportion of online intelligent app of new dishwasher and embedded all-in-one machine is relatively high Bowl machine even as high as 36%, intelligent products began to popularize in kitchen and bathroom appliances. Kitchen power began to increase the investment and development of smart home, accelerate the integration of products into the trend of smart home development, which is also the inevitable choice for kitchen to become the second center of family in the future.
3、 Only when consumers iterate and seize users can we have a future
The kitchen and bathroom appliance market is in the stage of new and old product competition, and consumers are also in the process of iteration. According to the relevant data of Jingdong Mall, the Post-70s and the post-90s are the main consumers. However, the three generations have different preferences for brands. The Post-70s prefer the professional kitchen electric brands of Fangtai and the boss, while the post-80s prefer the comprehensive brands of Midea and Haier, and the post-90s prefer Xiaomi and Hualing. In addition, from the perspective of gender, men are traditional 60% of the kitchen electric appliances are hot, accounting for 60%, while 40% of the women are the absolute support for the development of dishwasher and new steam baking products. Women are more receptive to healthy and diversified new things and are more willing to try new things. 79% of the consumers of traditional kitchen electric appliances are married people, and most of the purchasing behaviors of kitchen electric appliances are carried out after they are married. Starting from the characteristics of consumers, and closely connected with the market, this is the future of the industry development, but also the key to the survival of the brand.
In the second half of 2020, the epidemic situation will be normalized, but the economic recovery will be unstoppable. The results of consumer survey show that 46% of people think that the economy will improve in Q3. Kitchen and bathroom appliances will also change from negative to positive in the second half of 2020, with a year-on-year growth of 1.1% and a scale of 119.8 billion yuan. In this case, in the first half of this year, brands that consolidate their own foundation, constantly innovate, research and develop products and expand channels will usher in market opportunities. Not only brands such as Fangtai and Haier, but also service platforms such as Jingdong with Omni channel layout will take advantage of the wind.
Editor in charge: Tzh