Source: CHEAA-run China Appliance
Online sales of home appliances in China stood at 264.1 billion yuan ($38.6 billion) in H1, up 22 percent year on year, according to a report released by the China Center for Information Industry Development under the Ministry of Industry and Information Technology on August 2nd 2018.
Online channels posted fast-growing sales of home appliances in H1 2018, leaving traditional brick-and-mortar stores far behind. According to the report, online sales of air conditioners grew by 44.3% by value and 41.1% by volume respectively in H1, faster than the respective rate of 7.4% and 3.2% at stores, refrigerators 34.3% and 13.5% respectively, and washers 32.3% and 19.9% respectively, all faster than the overall performance of each industry. Online sales value and volume of TVs grew by 4.6% and 17.79% respectively, cutting the share of in-store sales to account for 44.13% and 35.16% of the overall sales value and volume respectively. Some emerging categories were particularly strong at online platforms. Vacuum cleaners saw its online sales doubled that at stores by value, while online sales of floor-cleaning robots posted 8 times that at stores.
Channel wise, JD.com, Tmall and Suning all saw a surge in retail sales value, but the market landscape remained unchanged, with JD.com taking an overwhelming 60.5% and Tmall and Suning almost splitting the remaining part.
Unit price of home appliances at online platforms rose in H1 2018, with refrigerators and washing machines up by more than 20% and 12% respectively, faster than the growth rate at stores. Air conditioners priced 5000 to 6999 RMB surged most online at a growth rate of 58.8% by volume and 55.2% by value year on year, while washers priced 4500 to 6499 RMB stood out with sales value up by 129.54% and volume 89.97% year on year. Refrigerators with a capacity above 281 L accounted for 31.57% of online sales of refrigerators by volume, and 52.52% by value.
As usual, online market took a lead in sales of high-priced emerging products, including water purifiers, wireless vacuum cleaners, negative ion hair dryers, and beauty machines.
In terms of brand, Chinese brands were at the top of the pack by sales. Gree, Aux and Midea dominated air conditioner market with a combined share of 75%. Out of the top 10 best sellers of refrigerators, Chinese brands took 9 positions. For TVs, the online market share of Chinese brands approximated to 80%, and for washing machines, the figure went beyond 80%. As to portable appliances, Midea held a dominating position.
In H1 2018, foreign brands lost more ground to Chinese brands, and were dislodged from the top three list of traditional major appliances. According to the report, Siemens was elbowed out of the top three sellers of refrigerators, ranking 7 by retail sales volume and 4 by value, with no products in the top 10 best-selling refrigerator list. Korean brands Samsung and LG were in the same position. In H1 2018, Samsung saw plunged online sales of TVs, ranking 9 by value, and lackluster track record of white goods, with online sales value of its refrigerators less than one seventeenth of Haier’s. LG almost disappeared from ranking lists.