In the rural tranquility of April, with fewer idlers around, the sericulture has just concluded and the fields are being planted. Busy and bustling, this has become the underlying theme and instinct for many home appliance manufacturers in the frontline market since the beginning of this year. Especially with the arrival of the May Day Golden Week, amidst the backdrop of various efforts to stimulate the market through trade-in promotions, more and more manufacturers are focusing on capturing the end terminals and continuously deepening their presence in the sinking market. This is expected to ignite the first wave of the home appliance industry this year, a result long anticipated by some manufacturers.
Focusing on the frontline market, companies are showing no signs of slowing down their efforts. Jiuyang, celebrating its 30th anniversary, has launched a series of new products featuring space technology, transforming from creating a new product category and industry with just a cup of soy milk to now aggressively seizing opportunities for consumer upgrades in the entire kitchen scene. Angel, specializing in water purification for 36 years, has undergone a round of strategic upgrades, brand rejuvenation, and product enhancements, ushering in the era of whole-house water purification. Meanwhile, Fotile has teamed up with JD.com to ramp up its market efforts in the gas water heater industry.
Apart from the household appliances, kitchen appliances, and water purification companies stepping up their game, Midea Group in the major appliances industry is accelerating its efforts to establish a new stronghold overseas, once again investing in acquiring the HVAC business of the Swiss veteran building equipment company ARBONIA, aiming to drive continuous breakthroughs in overseas markets. Haier Smart Home, on the other hand, has chosen to initiate a new round of green and low-carbon replacements in the domestic market, essentially upgrading people's quality of life with technological innovations and comprehensive scenario upgrades. Finally, after being acquired by TCL Corporation, Aoma Electric has finally undergone a "makeover" and renamed itself TCL Smart Home, deciding to develop its TCL-branded refrigeration and Aoma Electric's air conditioning businesses simultaneously.
While Chinese companies actively vie for dominance in both domestic and overseas markets, European veteran home appliance company BSH Home Appliances has reported a decline in major markets and categories globally in 2023, while Hitachi Toshiba, after withdrawing from the capital market, has embarked on another round of layoffs to streamline its operations. It's evident that the unstoppable rise of Chinese companies and the decline of European, American, and Japanese enterprises in the global home appliance market are inevitable.
Looking ahead, regardless of how the home appliance market and demand evolve, manufacturers must respect market dynamics and consumer trends, steadily driving both existing and new consumption within their capabilities. Blindly overdrawing on the market and consumer demand should be avoided.
Subsidies for home appliances trade-ins are gradually being implemented
Home appliances trade-in programs are being rolled out nationwide, accompanied by substantial subsidies and promotional activities from major enterprises and retailers. Specifically, Changsha is expected to allocate a subsidy fund of 39 million yuan for appliance trade-ins; Suzhou has earmarked a total subsidy of 120 million yuan for "old-for-new" programs for cars and appliances; Xining is offering subsidies for appliance replacements; Hainan is hosting a theme event titled "Home Appliance Trade-In and Green Circulation"; Nanjing is promoting consumption upgrades through trade-in activities centered around home appliances under the "Spring Renewal Season" campaign.
Predictions suggest that home appliance trade-ins will unlock a market potential of 270 billion yuan this year. The home appliance market has already responded, with Suning Retail Cloud reporting a 17% growth in retail sales in the first quarter. From the perspective of major manufacturers, trade-ins have shifted from short-term promotions to a sustainable business model, becoming a regular marketing strategy for all manufacturers. Additionally, the trade-in industry chain is continuously improving, with Shandong establishing the first digital platform for home appliance trade-ins called "Hui Xunhuan," representing a move towards more diversified and efficient trade-in initiatives.
Production of major home appliances rises in the first quarter, with TVs being the weakest performer
The first quarter of China's economy has shown a promising start. According to the latest data from the National Bureau of Statistics, GDP grew by 5.3% year-on-year in the first quarter, while total retail sales of consumer goods increased by 4.7%. As various appliance trade-in policies gradually take effect, the demand for replacing household appliances is expected to further increase, ensuring continued stable growth in the home appliance consumer market. Since March, the search index for appliance trade-ins has surged, showing a significant increase of 260% compared to the previous year. The home appliance industry may become an important area for enhancing economic vitality.
The National Bureau of Statistics has released data for the first quarter of 2024 and March 2024 for four major home appliance categories: air conditioners, refrigerators, washing machines, and TVs. From the first-quarter data, air conditioners, refrigerators, and washing machines all saw double-digit growth, but TV production increased only slightly by 0.2%. In March, production of air conditioners, refrigerators, and washing machines all increased, while TV production decreased by 3%. This indicates that the downward trend of the TV market in China in 2024 is unlikely to be reversed.
First-quarter market volume and value of popular kitchen appliances, such as induction cooktops, decline
The popular kitchen appliance product, induction cooktops, which experienced a continuous decline throughout 2023, has not shown any signs of improvement since the beginning of 2024. In the first quarter of this year, induction cooktop products experienced a double decline in both volume and value in the overall market, including online and offline channels. According to the latest data from AVC Cloud, in the first quarter of 2024, sales revenue of induction cooktops through online channels decreased by 37.55%, while sales volume decreased by 34.21%; offline channel sales revenue decreased by 4.42%, and sales volume decreased by 6.6%.
Compared to the double decline in volume and value in both online and offline markets for induction cooktops, the overall sales revenue of all home appliance categories in the first quarter of 2024 increased by 21.77% in online channels and 22.22% in sales revenue, while offline channel sales revenue decreased by 7.1%, and sales volume decreased by 13.02%. It can be seen that while the online market for home appliances is rebounding and the offline market is slightly declining, the unexpected double decline in volume and value of induction cooktops indicates significant operational pressure in the market since the beginning of this year, forcing companies to consider their next steps.
Chinese home appliance companies march towards new heights at the Canton Fair
Chinese home appliance companies' expansion into overseas markets has evolved rapidly from relying on OEM production to competing with international brands on equal footing with high-end products, personalized services, and proprietary brands. This was showcased at the 135th Canton Fair. As a crucial trade platform for Chinese companies to explore overseas markets, the Canton Fair has always been a barometer and indicator of China's foreign trade. This time, from major appliances to small appliances, Chinese brands presented green, intelligent, and technological products, breaking through the barrier of relying solely on cost-effectiveness to win orders and truly securing overseas orders with products and brands. Focusing on this year's Canton Fair, it's evident how Chinese manufacturing is advancing towards innovation. Emerging categories like robotic vacuum cleaners and laser TVs are gaining prominence, shifting from selling products to offering solutions, continuously fueling innovation. The transformation towards "new quality productivity" and the innovation showcased in cross-border e-commerce pilot zones and overseas warehouse display areas are opening up new formats for overseas trade for enterprises.
Midea Group resumes overseas acquisitions to strengthen its HVAC business
As Chinese companies venture abroad, industry giants are opting for large-scale acquisitions to expand their reach. Midea Group is a prime example. Recently, there have been reports of Midea Group acquiring Arbonia's HVAC business in Switzerland for 760 million euros, aligning with Midea's focus on building technology within the building sector in recent years. Prior to this, Midea Group had already acquired the renowned Italian brand CLIVET, bolstering its HVAC production in Europe. This acquisition is expected to further enhance Midea's HVAC capacity and channel advantages in Europe, aiming to establish a complete industry chain layout locally and enhance its influence.
For the home appliance industry, innovation always leads the way. As a leading player in the air conditioning sector, Midea has been committed to technological innovation, not only empowering the industry's transition to smart solutions but also enhancing consumer experiences with comfort, health, and intelligence. CCTV Finance, along with host Sa Beining, visited Midea's air conditioning headquarters in Foshan, Guangdong, kicking off a unique factory exploration program titled "Made in China, Made for Air." Through visuals, the program showcased the hardcore technology behind Midea's air conditioning, demonstrating its technological innovation and manufacturing prowess.
Haier Smart Home promotes a greener lifestyle with dishwasher innovation
Amidst the societal focus on green development, there's a surge towards a greener lifestyle that's more convenient, comfortable, and energy-efficient. It can be said that users are the driving force behind this shift, with the initiative firmly in their hands. Haier Smart Home launched its "Green Carbon Plan" during the "Haier Better Life Renewal Season: Spring Technology New Product Conference," advocating for a future of health, greenery, intelligence, and beauty alongside users.
With the transformation of lifestyle preferences towards quality living, there's a changing demand for kitchen appliances. According to market research by GFK CIC, titled "2024 Global and China Dishwasher Market Development Trends," dishwashers, as representatives of quality-oriented emerging home appliances, have seen sustained growth in the Chinese market over the past decade, with a compound annual growth rate of 41.63%. Recognizing this market potential, Haier Smart Home invested 50 million yuan to establish Qingdao Haier Smart Dishwasher Co., Ltd., indirectly controlled by Haier Smart Home, initiating a new phase of competition and leadership in the dishwasher market.
Olympia Appliances rebrands as TCL Smart Home to accelerate integration
The integration between TCL White Goods and Olympia Appliances is nearing completion, with Olympia Appliances ultimately rebranding. Olympia Appliances announced that the company's stock abbreviation has been changed from "Olympia Appliances" to "TCL Smart Home." Olympia refrigerators will continue under the "Olympia" brand and maintain their positioning as a "global professional refrigerator ODM supplier," continuing independent operation and development with support from the listed company. Similarly, TCL-branded refrigerators and washing machines will operate independently, forming a differentiated operation from Olympia refrigerators.
Since acquiring a stake in Olympia Appliances in 2021, TCL has continuously increased its holdings, completing board restructuring, divesting financial businesses, and acquiring TCL's home appliance business in Hefei. This renaming marks a new chapter for the home appliance listed company Olympia Appliances, enhancing the competitiveness of TCL's industrial white goods business. Additionally, for the entire home appliance market, the development of intelligent, systematic, and solution-oriented products based on whole-house scenarios will become a new trend and atmosphere in the industry.
Fotile partners with JD Appliances to ignite the hot kitchen appliance market
In the fiercely competitive kitchen appliance industry, the competition has intensified, and it's increasingly difficult for singular product or technological advantages to establish absolute barriers. For brands, the best defense lies in the multi-dimensional combination of technology, aesthetics, and experience, taking on the role of category leaders and standard setters to establish barriers. Fotile recently hosted a new product launch event themed "Metamorphosis of Wings," collaborating with JD Appliances to launch the new Fotile M Series water heaters and unveil the Happiness for Thousands of Families Plan, igniting people's boundless imagination for a better future kitchen life.
After decades of development, water heaters have entered a mature stage, with market competition evolving to higher-level value wars. As consumer demands further elevate, satisfying emotional and technological values becomes the core engine for activating the stock market and driving industry growth. Fotile's latest product launch further solidifies its leading position in the high-end segment of the hot appliance track, leading trends through aesthetics and technology, creating value for users and the industry, and opening up space for overall value innovation and high-endization of the Chinese kitchen appliance industry.
Xiao Zhan witnesses Angel's strategic brand product upgrade
Water purification may seem like a "small matter," but delving deep into this field and doing it well are crucial for the clean drinking water lifestyle. Angel held a "Leading Global Water Purification Technology" strategic upgrade and Space Master Series new product launch event. At the event, Angel introduced its new strategic direction as the "world-leading water purification expert," appointing Xiao Zhan as the global brand ambassador and unveiling the Angel Space Master series of whole-house water purification new products.
The process of Chinese water purification going global requires not only innovative technological achievements but also globalized marketing and operations. By proposing the new strategic direction of being the "world-leading water purification expert," Angel aims to have a global perspective and firmly implement the strategy of "going global." To achieve this, Angel has updated its brand logo from a more digital and international perspective, collectively witnessing the arrival of the whole-house water purification era in the water purification industry. Nine Yang kicked off the first quarter with robust revenue and unveiled new space technology products.
In the face of a complex and increasingly competitive market environment, Nine Yang continued to achieve high-quality improvements in internal operational quality and efficiency from season to season. In the first quarter of 2024, it achieved revenue of 2.065 billion yuan, a year-on-year increase of 9.15%; net profit attributable to shareholders was 130 million yuan, a year-on-year increase of 7.06%.
Nine Yang also held a 30th-anniversary product launch event, introducing new products from the Space Technology 3.0 series, including the 0-coating non-stick electric rice cooker 40N9U Pro, Space Thermal Purifier R5P, and the versatile high-speed nutrition blender Y8, aiming to kickstart a new wave of kitchen revolution. In the future, Nine Yang will reshape the value of its brand assets with "Home Kitchen" + "Public Welfare Kitchen" + "Space Kitchen," aiming to enhance the quality of family life.
JD.com Launches Liu Qiangdong's Live Streaming, Suning Takes Over Gome Stores
Currently, the channel competition landscape is undergoing significant changes. JD.com's live streaming e-commerce model, primarily featuring in-house salespeople live-streaming product sales, differs significantly from other e-commerce platforms' models where celebrity influencers drive sales. However, JD.com's deficiency in content ecology has led some merchants to migrate to other e-commerce platforms. Recently, "Dongge Digital Humans," represented by founder Liu Qiangdong, made its debut on JD.com's live streaming platform, further demonstrating JD.com's emphasis on content ecology. In addition to salesperson-led live streaming, JD.com is also aggressively developing other types of content ecology, although the extent to which these efforts will drive traffic remains uncertain.
Established home appliance retailer Suning is also seeking a turnaround opportunity. Since last year, the return to core businesses such as 3C and household appliances has gradually revived Suning from a downturn. However, faced with increasing competition, Suning also needs to break through the barriers of high traffic. Recently, Suning signed an agreement with Zhongta, announcing that the first Suning Easy Home Max store in Beijing will be located at the Central Television Tower. Securing a "giant" store with an operating area of over 20,000 square meters seems to be a positive signal for Suning. Previously, this address was occupied by Dazhong Electric under the Gome brand.
Bosch Home Appliances' Performance Declines, Toshiba in Japan Cuts Jobs
Affected by the global market's declining demand, Bosch Home Appliances' performance in 2023 was not optimistic. Bosch Household Appliances Group announced its financial performance for the 2023 fiscal year, with its home appliance business declining by 7% compared to the previous year. Specifically, Bosch Home Appliances saw revenue declines of 11.3% and 10.5% in North America and Greater China, respectively, with revenue growth achieved only in regions such as Southern Europe. In the development process of any enterprise or brand, challenges always exist. The decline in performance of Bosch Home Appliances, a veteran in the high-end home appliance sector, reflects to some extent the ongoing changes in the global home appliance industry landscape.
Meanwhile, the Japanese veteran company Toshiba has been plagued by scandals and poor management in recent years, and is now caught in a "wave of layoffs." Several media outlets reported that Toshiba is planning to lay off about 5,000 employees in Japan, accounting for about 10% of its total workforce. This is the first large-scale layoff by Toshiba since it delisted at the end of last year. Currently, Toshiba is intensifying its internal reforms, downsizing non-core businesses, and has established a new research center earlier this year, focusing on research in new technologies such as artificial intelligence.
