Industry News
Small appliances have a bright future!
- ReleaseTime: 2024-03-25
With the development of China's economy, small household appliances, as symbols of high quality of life, have rapidly entered consumer households. The small home appliance industry in our country has entered a period of vigorous growth, and the industry is rapidly expanding. Small household appliances are more and more popular with Chinese consumers. With the accelerating pace of consumption upgrading and the vigorous development of Internet e-commerce platforms, the market size of small household appliances continues to expand. The Chinese small home appliance market is still in a relatively high growth stage, and the demand for small home appliance products in the market has always been maintained at a benign and stable level, with an overall stable growth trend.
What is a small household appliance?
The home appliance industry is divided into black appliances (entertainment appliances), white appliances (appliances that reduce labor or improve living standards), and small appliances (appliances with relatively small power and volume). Small household appliances are further divided into kitchen and bathroom appliances, home appliances, and personal care appliances.
Black and white household appliances are generally essential and essential for daily life. But small household appliances are basically non essential, in order to improve the quality of life.
Development prospects
Continuous expansion of market size
According to the 2020 China Household Appliance Market Report, sales of traditional household appliances have declined due to the impact of the epidemic and market environment. However, small household appliances such as dishwashers, handheld vacuum cleaners, hair and beauty machines, wall breaking machines, air fryers, massage chairs, cleaning machines, etc. have seen varying degrees of hot sales, activating the previously dull household appliance market and strengthening the role of household appliances in enhancing people's happiness.
The report shows that in 2020, the market size of dishwashers accelerated expansion, with a year-on-year growth of 30.75%; The online retail sales of the floor scrubber, which combines wireless handheld vacuum cleaners and electric mop functions, increased by 1885% year-on-year; The year-on-year growth of electric mops exceeded 260%; The retail sales of hair styling appliances increased by 43% year-on-year, with an increase of 165.8% in the retail sales of electric hair clippers.
During the epidemic prevention and control period, in the context of weakened consumer demand, various types of smart small appliances have gone against the trend and become popular. From the demand side perspective, the popularity of smart small home appliances is the result of the combined effect of new consumption scenarios and consumer demand. During the epidemic, consumers mainly live at home, and their dependence on household appliances has increased. The demand for catering, bathing, entertainment, and other products is more realized at home, and the demand for small household appliances has also increased.
And compared to black and white appliances such as air conditioners and televisions, the penetration rate of small appliances such as microwaves and vacuum cleaners has not reached saturation, while the penetration rate of Western style small appliances such as ovens and bread makers is lower, with sufficient room for improvement. With the improvement of residents' income levels, the growth potential of the small home appliance market is enormous, and the next 10-20 years will also be the golden period for the development of the small home appliance industry.
Compared horizontally, the ownership of small household appliances in Chinese households is relatively low, resulting in a larger space. The number of small appliances in American households is about 31.5, while households in the UK, Australia, Germany, and France all have more than 20 small appliances, while Chinese households only have 9.5 small appliances; There is a significant gap in the number of small household appliances in Chinese households compared to European and American countries. Considering that the housing area of Chinese households, especially the kitchen area, is relatively small, it may restrict the penetration rate of small household appliances in China. However, compared with Japanese households with similar conditions, it can also be seen that the number of small household appliances in Japanese households is 16.5, which is also higher than China's level. It is expected that there is still significant room for improvement in the number of small household appliances in China.
The consumer group has great potential
Small household appliances, as fast-moving consumer goods, are a concentrated manifestation of young people's consumption of small household appliances. The accumulation of wealth and the upgrading of household consumption have elevated consumer preferences from simply meeting their daily needs to a level of quality of life and freshness. The main consumer group of small household appliances is not the family style mass market, but the younger generation, with female users in first and second tier cities being the main force.
In recent years, the lazy economy and the single economy have become increasingly popular, and small appliances with different functions such as kitchens, personal care, and environmental home furnishings have begun to enter the lives of more and more young people, especially for a series of hands free products such as dishwashers, floor cleaning robots, stir fryers, etc. Contemporary young people are increasingly pursuing quality of life, emphasizing personal spiritual and emotional satisfaction, and will equip their homes with various small appliances that can enhance their sense of happiness.
The e-commerce market is developing rapidly
The e-commerce market in China has developed rapidly. With the penetration of the Internet into every corner of social life, the number of Internet users in China has been growing at a rapid rate every year. In addition to the improvement of third-party payment platforms and online payment security, online shopping has gradually become a mass consumption mode from an online fashion, penetrating into all levels, and causing the change of Internet users' consumption behavior and consumption concept. Under the joint catalysis of the e-commerce promotion festival and the "home economy", consumers are operating fiercely on shopping platforms.
In recent years, the market size of online shopping for small household appliances in China has gradually expanded, and sales and sales have achieved rapid growth. The product grade, marketing methods, and logistics after-sales service of online shopping have made significant progress. At present, it has gradually become a common phenomenon for Chinese consumers to purchase small household appliances online. The consumer group of small household appliances has the characteristic of youthfulness, and consumers with such characteristics are often willing to choose e-commerce for shopping. In addition, small household appliances themselves are exquisite and have unique uses. They can be displayed in rich and colorful graphic and textual forms on e-commerce platforms to attract consumer attention. Therefore, in recent years, the small household appliance industry has also risen rapidly with the development of e-commerce, and the online penetration rate of small household appliances has reached 40% -70%.
Small household appliance industry chain
Small household appliances are designed, processed, produced, and assembled from raw materials such as steel and plastic, as well as aluminum castings, electronic components, power cords, heating tubes, and other spare parts. Through brand packaging and marketing, they are sold to customers for use, completing the creation of product value in this process. So the small home appliance industry chain is mainly divided into three major links: upstream raw material and component supply, midstream small home appliance manufacturing, and downstream small home appliance sales.
Upstream raw material and component suppliers are the foundation of the manufacturing industry, and different small home appliance products require different raw materials and components. With the development of technology, smart small home appliances are gradually becoming popular, and the demand for smart chips and IoT chips in the small home appliance industry is also increasing. Small home appliance manufacturers are the core link of the small home appliance industry chain, manufacturing different small home appliance products based on people's needs and technological development; Finally, small household appliances are distributed through various downstream sales channels.
