In 2019, the number of people entering the kitchen appliance industry increased significantly. There are three reasons:
First, the market space of the kitchen appliance industry is better than that of the home appliance industry. When the latter is weak, the kitchen appliance industry outperforms the market;
Second, the kitchen appliance industry is using AI and the Internet of Things, coupled with the rising demand for kitchen appliances for some middle- and high-income consumers, which may become a future profit growth point;
Third, with the policy of starting the home appliances to the countryside, after the property market in some areas is loosened, the consumption of household appliances will be activated to a certain extent;
Let’s just leave some of the miscellaneous small enterprises to get into the kitchen appliance industry. Not to mention, the well-known home appliance manufacturers have begun to make frequent efforts in the kitchen appliance market, which has confirmed the future of this industry.
On March 4th, at the 16th China International Small and Medium Enterprises Fair Smart Home Appliances Exhibition, Hisense Kitchen Electric brought a variety of new products into the game. For example, the Hisense hood is equipped with Hisense’s original frequency conversion system. Whether it is a fire or a small fire, the hood can automatically adjust the air volume according to the amount of smoke and temperature. At the same time, the hood is equipped with a 7-inch touch screen display, WiFi networking, music, movies, recipes query function.
In the cooking process of the Hisense cooker, the anti-dry function can detect the change of the temperature at the bottom of the pan. When the temperature at the bottom of the pan exceeds the safe temperature, the cooker will automatically cut off the gas source.
On March 12th, TCL 2019 Spring Season New Product launch conference, TCL announced a smart layout in the field of kitchen appliances:
TCL’s new intelligent range hood has a large 10-inch smart touch screen, built-in recipes and a variety of entertainment apps; TCL range hood AI voice recognition system provides a variety of operating environment human-computer interaction mode.
On March 13th, 2019 Skyworth opened the prelude to entering the kitchen electric industry with the theme of “AI Unbounded”.
Skyworth said that it will fully promote the kitchen power industry, using Skyworth’s existing strong resources as the backing, and seize the kitchen power market in product technology, market support, after-sales service and content resources.
During the AWE in 2019, Changhong’s Hongzhi Smart Kitchen realized the voice recognition and interconnection of Changhong intelligent products such as hoods, stoves, water heaters and water purifiers through “i+Intelligence” technology.
In the same period, Konka launched the AI 90° hood. The Konka 90° hood is strangely designed because it combines the characteristics of a traditional T-type hood and a side smoking machine. It works ultra-efficiently to remove soot through the working principle of simultaneous smoking on the top and side. With a slim body design, it can not only be flush with the cabinet, forming a whole but also solves the user’s pain point that the T-type hood is easy to touch the line of sight.
So far, Haier, Midea and Gree have already introduced kitchen appliances. In particular, Haier and Midea’s kitchen appliances have brought tremendous pressure to Fangtai and the Boss due to the continuous expansion of sales.
The five giants Hisense, TCL, Skyworth, Changhong and Konka colour TV have also entered the kitchen appliance industry. It can be seen that the kitchen power industry has formed three forces: the traditional kitchen appliance enterprise headed by Fang Tai & Boss; the old appliance giants headed by Haier, Midea and Hisense are expanding rapidly in the kitchen appliance industry, forming an important force that cannot be ignored; Other recruits who entered later, in the absence of brand, technology and user base, they entered the market through low prices.
People often use “the last profitable highland in the home appliance industry” to describe the Chinese kitchen electricity market that has continued to grow over the years.
In 2012-2017, the retail sales of the Chinese kitchen appliance market led the trend of all household appliances by an average of 13.5% double-digit growth per year.
High profit, high growth space, and a stable industrial structure have also attracted major industry giants to join the kitchen power sector, increasing the competition in the kitchen appliance market.
In the kitchen appliance market, in addition to the continuous promotion of professional leaders such as Boss and Fangtai, Vantage and Shuaikang are actively seeking breakthroughs in scale. Haier, Midea and other home appliance giants are expanding in the kitchen appliance industry and have achieved good results and performance.
However, by 2018, the kitchen appliance market declined overall due to the downturn in the real estate market. According to data from Aowei.com, the retail sales of China’s home appliance market in 2018 accumulated by 832.7 billion yuan, a year-on-year increase of 1.5%, which is one-seventh of the growth rate of last year. Among them, the retail sales of kitchen appliances in the 2018 China market were 64 billion yuan. , down 6.4% year-on-year.
Despite the overall decline in the kitchen appliances category, the growth rate of some emerging categories is still very fast. According to the data compiled by Blue Technology, the national model for dishwasher sales in China was 5.6 billion yuan in 2018, up 27.6% year-on-year; the national model for microwave oven retail sales was 20.4 billion yuan, up 30% year-on-year; the size of electric oven retail sales was 65. 100 million yuan, an increase of 10.6%.
If there is an entry, there will be an exit. According to the network data, there were 468 new brands of kitchen appliances in 2017, but 347 brands were eliminated.
With the intensified competition in the kitchen appliance market, the old appliance giants have invested heavily in the kitchen appliance market. They have advantages such as users, channels, brands and services, which has brought tremendous pressure on Fangtai and Boss.
However, judging from the existing pattern of the market, the brand concentration advantage in the kitchen appliance market is gradually becoming clear, but after the entrant wants to get more space, the price is also an important part.
Is this year’s play to capture the market through price cuts or to acquire users through technological innovation? Let us wait and watch.
[Blue Technology] Qí hàorán