The huge market potential stimulated by China's consumption upgrade will in turn promote technology iteration and innovation in a certain product or industry, which will lead to the rapid spread of the product. The home appliance industry, which is closely related to the lives of the people, has followed this development law.
In 2017, as a representative of clean appliances, the vacuum cleaner continued the spurt growth of the previous two years, in stark contrast to the lack of performance of traditional home appliances such as TVs, refrigerators, and washing machines. Some people have attributed their sudden emergence to the gradual enhancement of consumers' environmental protection and health awareness, as well as the benign competition of domestic and foreign leading brands such as Dyson, Philips, Puppy Electric, and Midea to cultivate the market. The above two forces have been upgraded to the bottom of consumption, helping the original niche products in the country to become a popular product on the road to popularization, vividly explaining the delicate connection between consumers' pursuit of "good life" and the growth of the home appliance industry. .
When the two seemingly contradictory keywords of “China's household penetration rate of 10%” and “global market-scale products” are combined, the vacuum cleaner industry has opened up a space with unlimited development potential.
Consumption upgrades breed blasting products, vacuum cleaners do not let
According to the monitoring data of Yikang in the market research organization, in 2017, the domestic vacuum cleaner market sold a total of 15.668 million units, and the sales volume increased by 30.2% year-on-year, far exceeding the overall growth rate of the home appliance industry. Another survey agency, GfK China, is more optimistic. It predicts that the size of China's vacuum cleaner retail market will grow by 44% in 2017, higher than 2016, and the overall development is accelerating.
In the current home appliance industry, there are two popular products that have been growing at a rapid rate and are highly sought after in the past few years, such as vacuum cleaners and dishwashers. However, due to the high installation space requirements, the “consultation of the dishwasher” in the Chinese market environment is difficult to overcome in the short term, and the use of the vacuum cleaner does not exist. In addition, usually a home has a dishwasher, but many users will consider purchasing multiple vacuum cleaners in response to different application scenarios. A famous home appliance brand has conducted a global survey. Nearly 30% of the respondents have two vacuum cleaners, and 6% have three or more. Therefore, in terms of growth, the vacuum cleaner will be superior to the dishwasher for a long time.
In the next 5 years or even 10 years, the Chinese vacuum cleaner market will continue to maintain rapid growth. This judgment is based on the following three points.
First, the household penetration rate is low and there is huge room for growth.
Compared with the household penetration rate of nearly 100% of vacuum cleaners in developed countries such as Europe and Japan, vacuum cleaners are still niche products in China, and the household penetration rate has just exceeded 10%. Even in China's first- and second-tier cities, vacuum cleaners have become “standard” for families. There is still a distance. From the perspective of the popularity of vacuum cleaners in developed countries, the Chinese vacuum cleaner market has great growth potential. The product attributes of the vacuum cleaner multi-application scene also mean that a household can have multiple vacuum cleaners, which will greatly enhance the domestic vacuum cleaner ceiling and provide a very broad space for the development of the industry.
Second, consumption upgrades stimulate demand and the market enters a golden period.
On the timeline, the rise of the vacuum cleaner market coincides with the rise of the domestic middle class. In fact, it is the middle class-driven consumption upgrade that has shaken the Chinese vacuum cleaner market. The Economist predicts that by 2020 China's new middle class will reach 470 million. The ever-larger “new middle class” has the characteristics of pursuing quality of life and accepting new things. This also determines that they have a high recognition of the vacuum cleaners after they have just been satisfied. As evidenced by the fact that while the market scale has expanded rapidly, the sales growth rate of the vacuum cleaner market in the past two years is much higher than the sales growth rate, indicating that high-end products have experienced rapid growth. In the next three years, China will enter the sprint stage of building a well-off society in an all-round way. Whether it is national policy support or household consumption level, consumption upgrading will lead the vacuum cleaner industry into a golden period of product upgrading, market iteration, and rapid growth.
Third, the growth prospects are promising, and the company is working hard to make the Nuggets.
According to the data provided by Zhongyikang and GfK, the average unit price of the vacuum cleaner market has been on the rise since 2015. This is not only the embodiment of consumption upgrade, but also the joint efforts of Chinese and foreign brands to promote the rapid upgrading of products. From an industry perspective, vacuum cleaners are products of global market size, and the industry is profitable and relatively stable. In the past two years, more and more foreign brands have entered the Chinese market, and domestic brands such as Puppy Appliance, Midea, Haier and Lake have also begun to be fully integrated. The symbiosis and win-win situation between Chinese and foreign brands not only adds more product choices to consumers, but also accelerates the overall market size.
Chinese and foreign brand games, domestic manufacturers perform strong
According to the monitoring data of Zhongyikang, domestic brands represented by Puppy Electric and Midea in 2017 are eye-catching in the vacuum cleaner market, accounting for more than 60% of the sales share. The total sales of these two brands in 2017 exceeded 1.5 million units, of which the sales of puppy appliances exceeded 2 million units, ranking first in sales. The market share of Midea, Haier, Lake, Delmar and other domestic brands has also increased to varying degrees. There are three reasons for the strong performance of domestic brands.
First, the Chinese vacuum cleaner market with low penetration rate and high growth is undoubtedly a “big cake”. With the influx of more brands, the market competition will test the comprehensive strength of the company, including the core business capabilities such as supply chain, channel and marketing. It also includes the company's adaptability to the market environment and its insight into the consumer population. It is clear that it is easier to win market advantages after understanding the domestic brands, channels and business strategies with flexible and flexible domestic brands.
Second, the diversified consumption structure of the Chinese market provides opportunities for development for different companies. For example, Dyson's main high-end, the main advantage is that the product is simple and easy to use, although the high price makes the ordinary Chinese family discouraged, but does not hinder the sales of its products in the minority crowd. Puppy appliance takes product as the core and pays attention to user experience. The “central maintenance” after-sales service model is very popular. The high-end and low-end full coverage product line and cost-effective market strategy are quite appealing in the new middle-class family. Higher market share. As a domestic veteran, the US vacuum cleaner has a number of loyal users in the urban people's class. In the past two years, it has integrated Japan Toshiba and the US EUREKA to form a new business unit, and exerted its strength in products and core technologies. These brands have found good market results based on existing brand positioning to find a suitable market entry point for their respective development directions.
Third, the rapidly developing e-commerce platform has become a booster for domestic brands. According to the "2017 Power Grid Purchase Analysis Report", in the e-commerce platform, the top sales of traditional home appliances are domestic brands. If the sales volume is proportioned, the domestic brands are more overwhelming.
A similar situation has also appeared in the emerging vacuum cleaner industry. Seven of the top ten brands in sales and sales of vacuum cleaners in 2017 came from China. The strength of domestic brands is to seize the rapid development of China's e-commerce platform earlier, and thus attract young consumers who pursue the concept of quality life. The success of the puppy appliance focusing on the e-commerce market has become a model. On the online market, the sales of puppy appliances have occupied the top spot for many years. It is the strength of the e-commerce platform, the puppy appliance has always been the first camp in the vacuum cleaner industry. At present, all major brands in the home appliance industry have embraced e-commerce, and brand competition in various fields has been transplanted online. The opportunities for companies that have entered the brand or missed the market to rapidly expand the market are greatly reduced, similar to Xiaomi in TV. Cases such as puppy appliances in vacuum cleaners have been difficult to replicate.
Previously, many consumers lacked confidence in domestic vacuum cleaners mainly because of technical concerns. Experts in the industry said that there is no so-called “bottleneck” in vacuum cleaner technology. The advantages of Chinese brands are localization and scale. The increase in investment is not only different from the foreign brands at the technical level, but the breakthroughs made at the market level are even more significant. For example, in recent years, wireless hand-held vacuum cleaners are accelerating the pace of replacing horizontal vacuum cleaners. Through a series of product upgrades, domestic brands dominated by puppies, Midea and Lake have not lost to foreign brands in this field. It is worth noting that China's consumption upgrade potential is huge, which in turn will promote technology upgrades and innovations, combined with the relative advantages in market size, these factors will help domestic brands to achieve post-production.
As the most promising category in China's home appliance industry, vacuum cleaners face a series of variables such as consumption structure upgrade, channel integration, market demand changes, and new technology applications. However, it is foreseeable that these factors of change will lead to increased brand competition and accelerated industrial concentration. The trend of strong and strong will be more obvious, but the ultimate benefit will be consumers.