In 2021, the overall retail sales of China's home appliance market will reach 760.3 billion yuan, a year-on-year increase of 3.6%. China's home appliance market is undergoing a deepening fission in multiple dimensions. First of all, the era of "channel is king" has long ended, and "product is king" is the true meaning of the market that is widely respected; secondly, the unit of market consumption has changed from family to individual consumption. The content has also changed from durable goods that meet basic needs to life-improving high-end consumer goods that pay more attention to personalization, quality, segmentation and diversification and can provide emotional value; third, the market growth logic has changed from the extensive type of the past, the scale decides the outcome transformed into refined growth, and the product value-added premium is absolutely the outcome; finally, in China's home appliance market, the demand economy model is replacing the market economy model, the Chinese home appliance market demand is being deeply segmented, and the market is also start rewarding companies and individuals who "understand users well", "understand their needs", and "far-sighted".
At the 2022 SUNING Home Furnishing Industry Spring Conference held on March 10, 2022, Guo Meide, President of AVC, pointed out that China's home appliance market has entered an era of great profits. In the first decades of development, China's home appliance market was in a "violent era" where channels were king, with insufficient products, asymmetric information, and extensive demand. After the development of reform and opening up, the supply of home appliances has changed from insufficient capacity to overcapacity in the past, the Internet and e-commerce have developed highly, and the transportation infrastructure has been extended in all directions. However, the wheels of the market never stand still, and as China's economy enters a new normal, followed by the impact of the epidemic, the market's growth drivers have been re-adjusted once again. Under the superposition of factors such as insufficient demand release, continuous upgrading of consumption, younger and segmented users, and pre-distribution of demand, we once again see that only in-depth management of users, practical improvement of products, services, and experience, and careful management of fragmented channels To have the opportunity to touch a new round of growth. The home appliance market has entered the "high-profit era", and the value-added space for products, services, brands, experiences, and diversified operations has been opened. This is a wave of rewards for continuous cultivation and a wave of dividends for in-depth management!
In the "Era of Great Profits", user needs are also undergoing profound changes, and the main consumer groups in the market are younger, generate five consumption propositions — pleasing oneself and being honest, refined and lazy, beauty, LOHAS health, and whole-house intelligence.
In addition, we also mentioned in the previous article that high-end and quality-oriented consumption caused by consumption upgrade is setting off a new wave of consumption boom. High-end has become the "future password" of China's home appliance industry, and the value of users has been redefined. The high-end demand is not only reflected in the product level, but users' demand for high-end services is prominent, and the ultimate service experience is becoming their increasingly clear service demands.
