Source: Jia Dongsheng from China Market Monitor
This year will kick off the efforts to put all the guiding principles from the Party’s 19th National Congress into action. It is the 40th anniversary of reform and opening-up, and it is a crucial year for securing a decisive victory in building a moderately prosperous society in all respects and for continuing to implement the 13th Five-Year Plan. In this context, people’s pursuits of better lives become a strong booster for home appliance industry to rise. At this moment, the industry must upgrade following the pace of consumption upgrading, through an innovation-driven development pattern.
On March 8th to 11th, the Appliance & electronics World Expo (AWE) kicks off in Shanghai. Widely regarded as the most lively, creative show of the field, AWE displays a wide array of trend-setting innovative products from sectors including home appliances, consumer electronics, smart hardware, artificial intelligence and the internet under the theme of Home for Next. It is more than a technology show. It is a blueprint of the future depicted for consumers all across the world.
Technology innovation brings to life home appliances
The fast-evolving show reflects the preliminary achievements of the supply-side reform of China’s home appliance and consumer electronics industry. In the new era featuring a change in the principal contradiction in Chinese society, consumption makes a bigger contribution to the economy than before as one of the three major economy-boosting factors of China. Putting people first, enterprises meet the demand of consumption upgrading through technology innovation, broaden access to resources necessary for innovation, and improve manufacturing capabilities. Bringing together myriad intellects and pooling everyone’s energies, China’s home appliance industry will break into a sprint in innovation. And AWE, as a grand show of high tech, carries heavy missions.
Amid the tide of innovation, heated technologies including artificial intelligence, mobile internet, internet of things, big data and cloud computing, spring up. Deeply embedded with home appliance industry, these technologies change home appliances from individual products into life solutions that integrate high tech, high quality, appealing style, rich content and thoughtful services. Home appliances become creators and managers of people’s lives. In AWE 2018, a large number of smart products deeply integrated with IoT, big data and AI are capable of self-learning, active service and human-machine interaction.
At the exhibition halls, technology innovations are everywhere. Haier turns itself into a smart washing master, offering a fast washing experience with a direct drive motor and a cleaning-free experience with its IoT-enabled single tub design. Robam showcases a package of kitchen appliances including a hood with super suction power and a professional cleaning system for kitchen use. Using kitchen appliances as a way of passing down Chinese culinary culture, Robam offers solutions to a life full of love, happiness and great food. Hisense empowers its home appliance products with a smart system, and turns its TVs into an entertainment manager of a home through technologies including DTS, HDR, the moth eye, quantum dots and smart sensors. At AWE, home appliance makers deliver their boundless care for the consumers through exhibitions. At AWE, technology innovation brings life to home appliances, making our lives better.
Consumers’ pursuit of better lives fires up industry players
With the coming of the next replacement cycle, China’s home appliance consumption is changing from function-oriented to quality-oriented. As China’s consumption upgrading trend indicates, consumers’ eyes are more and more placed on the improved life quality behind home appliances. China’s home appliance market enters an era that is driven by efficiency and innovation rather than the previous resources and scale. Consumption upgrading is revitalizing China’s home appliance industry.
Along with the trend of consumption upgrading, China’s home appliance industry steps up its efforts in product development, brand building, channel expansion as well as consumer experience elevating. Home appliances are going smart, young, high-end, healthy, customized, differentiated and artistic, redefining the concept of “a good product” in the new era. Through cross-boundary cooperation, partnership and overseas acquisitions and mergers, leading industry players strengthen their comprehensive capabilities in a bid to meet people’s demand of better lives. At the same time, they’re committed to establish the competitiveness of their brands alongside their efforts in market expansion. Many home appliance makers and retailers have joined the National Brand Plan launched by CCTV in 2018, including Haier, Midea, Fotile, JD.com, Suning and Gome. They jointly present to the world the power and charisma of China’s manufacturing industry and their capabilities of making high quality products.
Distribution channels are thriving and going innovative. Actively embracing Internet+, channels sink to small cities and rural areas and display a trend of bricks and clicks in both products and services, which elevate the value of channels. At AWE, smart retail solutions including self-service checkout, self-service vending machine and smart traveling solutions are showcased. Surrounding improving user experience, scenario-based retail is highlighted and new business modes such as home appliance leasing and shared home appliances boom. Reflecting the trend of personalized, fragmented consumption, new marketing strategies featuring celebrity engagement, community economy and internet celebrity economy are rising. At AWE this year, a wide array of interactive activities, such as celebrity endorsement, food tasting activity, calligraphy show, hair saloon and model show, add some entertainment element to the exhibition while makes technology more down to daily life.
China’s home appliance industry is on its way to bring technologies to life, to create better life experiences, and to offer them to people around the world. AWE will surely amaze us with more surprises next year.