Government Stipulated Regulations and Changing Consumer Preferences for Large Appliances in China to Influence Market: Ken Research

• Large appliances market is expected to recover after registering a decline in2015 owing to expected improvement in real estate demand, implementationof income doubling plan and new urbanization program by government.

• Market share of front loading washing machine, multi-door refrigerator,inverter type air conditioner and 4K smart television will lead the demand forlarge appliances in China Market .

Large appliances are basic household electrical appliances used in everydaylife to have better living and working experience. These appliances includeair conditioner, refrigerator, washing machine, and television. Rising urbanpopulation, increase in disposable income and supportive governmentpolicies are expected to drive the market in future. Large appliances are avery dynamic market and continuous innovation is required to make theproducts more economical and user friendly. Over the years, ownership oflarge appliances has increased in both urban and rural areas. Demand fromlow tier cities will augment the demand in future as well as create demandfor replacement of existing products. It was reported that urban householdsown 122 televisions sets 90.7 washing machines, 91.7 refrigerators and 107.4air conditioners per 100 households.

In September 2013, China introduced GB21455:2013, a new standard forinverter air conditioners which is expected to raise requirements on energy-saving performance of inverter air conditioners and eventually boost theirpopularity among consumers.

China has planned to increase the energy efficiency of inverter airconditioners by 20% over the current planning period which ends in 2015Subsidies for five categories of energy-saving household electricalappliances, including air conditioners, flat-panel television sets,refrigerators, washing machines and hot water heaters, ended in June 2013,after being in place for a period of one year. According to the program,consumers could be subsidized by RMB 70 to 550. The effects have beennotable. Market shares of energy-efficient air conditioners and washingmachines have increased, with sales of such appliances rising from 1.6mnunits in June 2012 to an average of about 7mn in the first five months of2013. The major long-lasting effect is to be the increased consumerawareness of the benefits of eco-friendly products. Ministry of Commercerepresentatives have stated that no similar subsidies are planned for thenear future. Another subsidy policy, "Household appliances go rural", endedin January 2013 after a five year run.

In recent years, China has entered a period of consumers upgrading theirproducts. Consumers are increasingly keen to have better quality products,stylish design, energy saving and high-end products In addition, as theyounger generation of consumers has become an increasingly importantgroup using appliances, their consumption habits and changes inconsumption patterns also contributed to an evolution in appliance industrysales 2 patterns. In fact, the sudden emergence of e-commerce over the lasttwo years has driven important changes in the way in which sales arise.

According to Research Analyst, in order to keep their consumer base intact,it is crucial for the existing companies to offer the best quality products atcompetitive prices. Since the consumers in the residential sector havestarted preferring aesthetically pleasing products therefore, the companiespresent in this industry should develop more trendy and innovative designsto reach the consumers.

The report titled “China Large Appliances Market Outlook to 2020- RisingPreference for Smart Technology Appliances and Replacement Demand toDrive Market” provides brief overview on the China Large Appliances Marketand helps readers to identify the ongoing trends in the market andanticipated growth in future depending upon changing market dynamics incoming years. The report will help existing distributors, manufacturers alongwith end users in large appliances division to align their market centricstrategies according to ongoing and expected trends in the future.

For more information about the publication, refer to the below link:

https://www.kenresearch.com/consumer-products-and-retail/consumer-electronics/china-large-appliances-market/57225-95.html

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