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China's vacuum cleaner industry has developed for 20 years, why is the biggest price increase this year?
Release Time:2018-08-07
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As an upgraded product of the sweeping tool “broom”, the vacuum cleaner has gradually entered thousands of households in recent years, which makes the family living environment more clean and tidy, and also greatly liberates manpower and makes life more warm and cozy.
 
China's domestic vacuum cleaner industry has developed for 20 years, but this year there has been an anomalous feature - the average price of products has risen sharply. According to Omni Cloud (C) omnichannel monitoring data, the average unit price of online vacuum cleaners was 840 yuan in the first four months of 2018, up 19.5% year-on-year; the average unit price of offline vacuum cleaners was 2031 yuan, up 27.0% year-on-year. Even in the peak season of e-commerce 6.18, which is known for its price war, from May 28 to June 24, 2018, the total retail sales of vacuum cleaners across the W22-W25 for 4 weeks totaled 1.45 billion yuan, up 48.6% year-on-year. The average price of products rose by 19.1% year-on-year.
 
It can be seen that since the beginning of this year, the average price of China's vacuum cleaners has shown a sharp rise, and the increase is the largest in history. What is the cause of the above phenomenon? This must start with the history of the development of the Chinese vacuum cleaner industry.
 
China's vacuum cleaner industry has grown from scratch, from 1999 to ordinary people's homes
 
Vacuum cleaners have become essential consumer goods in developed countries such as Europe, the United States, and Japan decades ago. However, the ordinary people who actually entered China were in 1999.
 
In the late 1990s, with the increase in national income levels, the popularity of TV, air conditioners, refrigerators, washing machines and other household appliances increased rapidly, while the relatively small vacuum cleaners just emerged, and mainly based on foreign brands with very high prices.
 
In July 1999, the “Puppy” trademark was registered with the National Trademark Office, and the Chinese vacuum cleaner brand – the puppy vacuum cleaner was born.
 
In September 1999, the puppy vacuum cleaner was stationed in Beijing's Blue Island, Xidan, Yansha and other department stores, so that ordinary consumers began to really come into contact with the vacuum cleaner. In July 2000, the puppy entered the Gome Electrical System and Dazhong Electrical System as the first vacuum cleaner industry brand. In 2002, the first intelligent sweeping robot puppy D-1008 was launched in China. In 2003, it was the first to introduce the 260W industry's largest power car vacuum cleaner. In 2004, it was listed as the first 80-liter ultra-large-capacity industrial wet and dry bucket vacuum cleaner in China.
 
For many years, the puppy has created the number one vacuum cleaner industry, filling the gap in the vacuum cleaner industry in China, and promoting the popularization of the vacuum cleaner market in China with leading product technology advantages.
 
The rapid rise of e-commerce channels has become an important promoter of accelerating the popularity of vacuum cleaners.
 
The popularity of the Internet and the rapid development of e-commerce have become important drivers for accelerating the popularity of vacuum cleaners. In 2007, the puppy strategically transformed the e-commerce channel.
 
On June 11, 2007, the puppy tried to open a store on Taobao. The puppy electrical market store was established. As the first vacuum cleaner brand to enter the Taobao market, the dog who once ran "panting" under the line stepped on the line with "accidental foot", and then first made a presence in Taobao Mall and Taobao Electric City. Later, the puppies entered other e-commerce platforms one after another, becoming one of the earliest home appliance brands to explore Internet marketing in China.
 
After the online sales, the dog borrowed the Internet e-commerce to let vacuum cleaners and sweeping robots enter the public's field of vision, which greatly promoted the popularization of vacuum cleaners in China and created a sales miracle of domestic domestic brand vacuum cleaners. At that time, on the Internet in China, on average, for every 3 vacuum cleaners sold, 2 were puppy brands.
 
In the Chinese home appliance market, fast-growing online channels have become the main camp for users. As far as the vacuum cleaner is concerned, because of its relatively small volume, it has the advantages of facilitating logistics and distribution, and basically no need for professional installation, the online shopping experience is much higher than other large household electrical appliances, and is accepted by consumers more. Therefore, the online channel shipments and shipments of the vacuum cleaner market are much higher than the offline channels. For vacuum cleaners, “the e-commerce channel is the best in the world”.
 
According to Zhongyikang's “Annual Overview of China's Vacuum Cleaner Online Market Shares in 2017”, the top ten brands in the market are Puppy, Midea, Cobos, Haier, Delmar, Mrs. Han, Philips, Dyson, Bao. Jiali, Lake, and Puppy Appliances topped the list with a market share of 13.00%.
 
With the accelerating popularity of the vacuum cleaner market, vacuum cleaners are becoming more and more popular, ranging from the horizontal and commercial barrels of the mainstream in the market a few years ago, to the vehicle-mounted and smashing devices for subdivided products, to the current market-leading robots and Hand-held putter type, the category is constantly being updated and enriched to meet the needs of different consumer groups.
 
The upgrade of the vacuum cleaner market has suddenly increased from this year, starting from the best
 
Entering 2018, a new wave of consumption in China's vacuum cleaner industry is surging, which is different from the popularization of “from scratch” in the previous stage. This new wave is a replacement from “to the best” to popular consumption. Improved consumption shifts.
 
With the acceleration of urbanization, the increase of people's income, and the improvement of housing conditions, Chinese consumers' purchasing power of home appliances has increased remarkably, and expectations for home appliances have become higher and higher. With the “post-85s” and “post-90s” new generations of people gradually becoming the main force of consumption, the characteristics of quality, intelligence, individualization and diversification are increasingly prominent.
 
Consumers are looking forward to using newer and better home appliances; home appliance manufacturers are constantly innovating, designing and producing products that are better, more individual, and reach consumers' pain points. In this context, many vacuum cleaners have stopped the low-end price competition. In 2018, the transformation of the high-end market has become the way out for the Chinese vacuum cleaner brand.
 
Since the beginning of this year, Dyson, Philips and other foreign vacuum cleaners have stepped into the Chinese market, the consumption of vacuum cleaners has suddenly increased, and the proportion of medium and high-end products has increased, resulting in the largest increase in average product prices over the years. For consumers, although the cost of purchasing a single vacuum cleaner has increased, the value created by the vacuum cleaner is even higher – higher quality, higher end, smarter, more energy efficient and more fashionable.
 
In the face of foreign rivals, Chinese local brands represented by puppy appliances have also strengthened technological innovation and launched a high-end vacuum cleaner market. Technological innovation can drive product quality upgrades, and quality upgrades are the long-term driving force for industry growth. The strategy of transforming the high-end market of puppies can be seen in 2017. Since the middle of last year, a number of masterpieces have been launched, focusing on the mid-to-high-end market.
 
The puppy D-610 wireless de-cleaning vacuum cleaner released in July last year won the German iF design award list, which is the first time that the domestic vacuum cleaner products have won this honor. In March of this year, this product once again won the Epland Product Award from China Home Appliances and Consumer Electronics Expo (AWE).
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