CHINESE

China’s home appliance industry saw a notably improved quality of its economic growth in 2016, with upgraded consumption preferences of consumers, a rebalanced industry structure and product mix, and enhanced product quality. While major appliance market was sluggish in the first half of 2016 with a fall in both production and sales of air conditioners and refrigerators, it picked up in the second half. The industry performance between Jan-Oct 2016 is as follows:


Domestic sales


Large appliances, though didn’t fully step out of the sluggishness, saw a pickup in 2016. In Q3 2016, large appliances reversed its continued negative growth in domestic sales, and further picked up in October. Portable appliances saw distinct performances in different sectors, among which export-oriented ones saw a clear influence from international markets. Kitchen appliances remained its exciting performance.


As to average price trend (with statistics from online sales), large appliances was on a roughly downward trend in H1, but starting from Q3, its average price went up. Kitchen appliances secured a better performance than other sectors in this regard.


Export


China’s home appliance industry maintained a stable, also a historically high level in exports in the past year. With a climb in export volume, large appliances saw a better performance in exports than domestic sales. And by comparison, it outshined the export performance of small appliances.


Output


China’s home appliance industry saw a downward trend in a number of sectors in the first half of 2016. As export market went stabilized and domestic market entered its high season, refrigerators and air conditioners stepped out of the downwardness. Kitchen appliances remained a continued growth in output. In general, large appliances, most small appliances, kitchen appliances maintained a historically high level between Jan-Oct 2016.


Economic indicators


China’s home appliance industry saw its prime operating income register 1.18 trillion Yuan from Jan-Oct 2016, a year-on-year increase of 2.51%, total profit register 84.4 billion Yuan, a year-on-year increase of 13.82%.


In the past 2016, industry players have been devoted to the government’s call for industry restructuring and upgrading, and this produced strong results, including: (1) Enhanced innovation capacities. This was achieved through system improvement and increased investment in R&D. (2) Rebalanced product mix with high-performance products taking a bigger proportion. (3) Upgraded manufacturing technologies to achieve automation and smartization. (4) An order-based operating mode, which is distinctly different from the traditional mode that features mass production, mass inventory and mass sales. (5) A new strategy of going global.


According to Hu Xiaohong, director of CHEAA’s department of information, in the forthcoming 2017, domestic market is estimated to go further stabilized. Export of China’s home appliance market is expected to face a tough battle, though overseas market is estimated to maintain stable in short term.


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