Home Appliances

China’s 2020 Home Appliance Service Market Will Surpass the Worth of 1 Trillion Yuan

If the home appliance industry is less prosperous, the more opportunities the market will have. The overall performance of the home appliance industry in China has weakened. If there is no big favourable policy support, it may not reverse the trend soon. However, the home appliance industry will not enter the freezing period. In the post-home appliance period, the opportunity of the home appliance service market has come into the picture.

In the long run, consumers will pay more and more attention to pre-sales and after-sales service. It is expected that the scale of home appliance service market will exceed one trillion Yuan in 2020. Suning Tesco and the Ministry of Commerce International Trade and Economic Cooperation Research Institute and the Jiangsu Provincial Department of Commerce jointly issued the “First Quarter of 2019 Home Appliance Consumption Trend Report”:

In the context of consumer upgrades, consumers are increasingly demanding service experiences, which also requires retailers to provide one-stop services from pre-sales, in sales, after-sales and value-added services. Among household electrical appliances, especially air conditioners, colour TVs, and kitchen appliances have higher requirements for installation services, which also raises higher standards for the after-sales service of brands and distributors.

The data provided by the China Household Electrical Appliances Service Maintenance Association in 2017 showed that, the revenues of four services such as home appliance installation, maintenance, door-to-door service and parts and components reached more than Yuan 260 billion. The other services such as cleaning, maintenance, extended warranty, integrated package solutions and emerging new service revenues reached more than Yuan 280 billion.

China’s home appliance industry has gone through several stages, namely, dividends to the population, dividends to the channels, and dividends to e-commerce. Nowadays, with the trend of e-commerce and the changes in the external environment, the home appliance industry needs to make a dividend to the service. This is one of the important profit growth points in the future home appliance industry. This is also strong support for the tens of billions of markets in the home appliance service industry by 2020.

Doing enough home appliance service, future prospects are expected. Suning‘s approach is to make the service practical, thorough, refined, and well-made, so as to seize the opportunity in the home appliance service market. In terms of user experience, in 2019, Suning Air Conditioning pioneered a visual installation mode, allowing consumers to directly view the actual installation situation. At present, the video tracking system has been piloted in cities such as Nanjing, Shanghai, Xi’an and Hefei. Suning hopes to continuously improve the user experience through visual services.

Perhaps this experience will not directly affect income, but it will indirectly promote consumers’ desire to buy. Because of the increase in quality of customer service and transparency, the sense of trust between Suning and consumers will be further strengthened. This is one of the key factors for Suning’s home appliances to achieve new highs in recent years. In terms of service charges, the retailer also regulates the behaviour and charging standards of the installers and provides relevant after-sales feedback channels. For example, Suning launched the “big screen colour TV free installation” service for 65-inch and above large-size TV users. It covered free installation service, free of rack materials costs, free of site cleaning fees and other six costs, comprehensively strengthen the colour TV service standard.

In terms of service commitment, Suning’s “Sunshine Pack” ten-year warranty service covers the failure of mechanical components, electrical and electronic components failure, voltage instability, dust/heat/internal humidity damage, condensation, etc. under normal product use. The performance of the TV screen, the motherboard failure, or the core components of the kitchen stove, including the motor, computer board, valve body ignition switch, etc., can enjoy warranty service.

The advantage of this is that during the ten-year warranty period, if the responsibility for the factory warranty period is still guaranteed by the manufacturer, if there are other problems, Suning will actively help the customer to repair and the price is transparent.

Reducing the responsibility of users and providing transparent services to users is a key part of home appliance service and the best service plus item in the post-home appliance era.

In the long run, consumers will pay more and more attention to pre-sales and after-sales service, and their dependence on home appliance services will become stronger and stronger. The quality of service, in turn, will also affect the user experience, which in turn will have a profound impact on user loyalty and repurchase.

-Blue Technology – Li Qiang

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