Nowadays, people are categorized into demographic groups who have their unique interests and preferences such as singles, mothers, students, otaku, pet owners and employees, generating a demographic-based economy that gives more attention to specific demographics instead of the masses. Consumers within a demographic group have similar preferences. They trust personal feedbacks and recommendations from people within the group, and are willing to pay for personalized, special, and innovative products.
In this context, home appliance industry also steps up their efforts in the development of niche markets by rolling out personalized products to meet the demands of specific demographic groups. Currently, Gen Z, mothers & babies, singles, pet owners, the elderly, and campers are the key demographic groups of the home appliance industry, which attracted many new players to dip their toes.
Gen Z have become the mainstream of consumers in China, which make them a demographic group every industry player wants to win over. Gen Z consumers believe in value-for-money philosophy. They pursue fashion trends, enjoy shopping but are also very rational. The rise of Gen Z consumers has an impact on the development of the home appliance industry. And enterprises such as Haier, Midea, Bosch, Siemens, Hisense, Aucma, Bear, Supor, Joyoung, Leader, Aux, Vatti all have products targeting Gen Z consumers.
The “post-90s” and “post-95s” parents have different ideas regarding raising children compared to their parents. They are willing to try new parenting methods and to spend money for their babies, which provides an impetus for the growth of mother and baby products such as baby food processors, baby bottle warmers, bottle and toy sterilizers, baby and mother air conditioners, refrigerators and washing machines. The baby and mother home appliance market sees a growth that stands out amid the overall gloominess due to the joint efforts made by enterprises to meet the rise of demands for baby and mother products.
The singles also have large consumption potential to be unlocked as the growth of the single population generates rising home appliance demands and home scenarios. These consumers values convenience, personal happiness, spiritual enjoyment, and personal growth. As they don’t have the financial pressure from supporting a family, they are willing to spend. To tap into their demands, home appliance makers have been developing home appliances for those who live alone such as small food makers, mini home appliances or home appliances for indoor entertainment and companionship.
Pets have become an indispensable part of many people’s daily lives. For many pet owners, pets are family members, and they’re willing to spend big on them, which promotes the rise of the pet appliance market. Currently, most pet appliance makers are startups. Among traditional appliances, only Panasonic have made a clear statement about entering the pet appliance market in China.
China’s “silver economy” is booming as the age structure of Chinese population has entered the ageing stage. Creating a high-quality supply system that includes eldercare services and products and seizing the opportunities and challenges brought by the rise of the silver economy is a new task faced by all industries, including home appliance industry. From AWE2023, we can see that many home appliance companies are stepping up their deployment in this field for a share in the rising silver economy market.
Camping, as a new trend in the market, has also attracted many home appliance makers to dip their toes through launching outdoor appliances. Although the popularity of camping has declined with the relaxation of covid-19 control measures, the market demand still exists in the long term.
The booming development of the demographic-based economy has brought new opportunities for the home appliance industry. In this context, home appliance companies keep consumers in mind, and precisely target them based on their preferences and interests.