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[Home Secret]According to data released by the National Bureau of Statistics, in the first three quarters of 2023, China's GDP increased by 5.2% year-on-year, showing that the national economy is continuing to recover. At the same time, the total retail sales of consumer goods also maintained a year-on-year growth of 6.8%. Although the growth rate fluctuated, it still showed a positive trend overall. Among them, the online channel performed well and led the growth rate. The communication equipment and automobile markets have also seen a significant recovery recently, while the home appliance and office markets have begun to decline.
According to statistical data, China's home appliance market will also begin to resume growth in 2023. The overall market retail sales in the first three quarters reached 652 billion yuan, a year-on-year increase of 6.7%. White electrical appliances contributed the most to the market, with retail sales in the first three quarters reaching 325.8 billion yuan, a year-on-year increase of 13.6%. With the advent of the post-epidemic era, people's work and life are gradually returning to normal, but the development of online channels continues. Retail sales in the first three quarters of this year increased by 9.7% year-on-year, far exceeding the 3.7% of offline channels. year-on-year growth rate.
In terms of market performance in different categories, according to GfK’s total retail sales data (including social e-commerce), low-penetration emerging home appliances such as air conditioners, hairdressers and razors, and clothes dryers are growing. Leading in speed. However, GfK predicts that the growth of categories such as color TVs, air conditioners, range hoods, gas stoves and water heaters will slow down in 2023 and has not yet returned to pre-epidemic levels. The growth of refrigerators and washing machines is relatively stable, with retail sales expected to increase by 7% and 6% year-on-year. After experiencing explosive growth, the growth rate of quality lifestyle appliances has begun to slow down.
The success of the home appliance retail market is inseparable from four core elements: First, rational consumption has become the dominant trend. Since April 2022, Chinese consumer confidence has been sluggish for a long time. Although there was a slight rebound at the beginning of this year, it remained at a low level until the third quarter. In this case, the stratification and consumption differentiation of consumer groups have significantly expanded, and the proportion of rational consumers has increased. Specific to the home appliance market, from January to October this year, the mid-to-low-end market share in the price range of various categories such as color TVs, refrigerators, washing machines, and air conditioners increased the most.
Secondly, product strength becomes the key. Despite economic challenges, product functionality remains the top factor in consumers' shopping decisions around the world. From January to October 2023, the retail sales of popular categories of high-performance products in China's home under-wire market have increased across the board, bringing structural growth opportunities to the market. At the same time, with the growth of the white home appliance market, the penetration rate of green smart products continues to increase. The trend of integration of home appliances and homes is obvious, and efficient and convenient small home appliances are more popular among consumers.
Third, the degree of branding continues to improve. GfK's research found that the leading brands in China's home appliance market are more trusted by consumers and have better growth performance. The concentration of home appliance brands has further increased, and the advantages of domestic brands have been highlighted. According to the GfK China Consumer Confidence Tracking Survey, more than half of consumers already have a target brand before shopping, and their preference for brand stores has increased significantly.
Finally, channel diversification has become a trend. In the post-epidemic era, consumers' shopping habits have changed significantly, and social e-commerce channels have shown strong growth momentum. According to GfK Zhongyikang’s social e-commerce retail monitoring data, in the first three quarters of this year, the retail sales growth rate of most home appliance categories reached three digits, and there are more and more major home appliance brands in the top categories. In the digital era, the home appliance market is evolving from multi-channel to omni-channel. Online home appliance retailers are beginning to look for offline incremental opportunities, and offline physical stores are beginning to fully embrace online channels.
For retailers, they need to pay attention to consumers' increasingly rational shopping needs, keep up with market development trends such as intelligence and greenness, and pay attention to popular products and technologies on the market. At the same time, they also need to pay attention to social e-commerce and the front-end home appliance market, and formulate omni-channel marketing strategies based on their own advantages to win more market opportunities.
Overall, China's home appliance market will show a continued recovery trend in 2023. Consumers' awareness of rational consumption has increased, product functionality and brand recognition have become important factors in shopping, and channel diversification has brought new growth opportunities to the market. In the face of market changes, retailers need to respond flexibly, continuously innovate and adapt to changes in consumer demands in order to stand out in the fiercely competitive market.
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