Happiness lies in the place where disaster lies, and disaster lies in the place where happiness lies. COVID-19 is shaking the economy on a global scale. However, the excellent anti epidemic work of the whole people has made China’s economy recover rapidly, and the home appliance industry has also gone through the twists and turns of restraining first and then rising, moving towards the turning point of history.
On March 22, the China Institute of electronic information industry released the “report on China’s home appliance market in 2020”, which shows that the scale of retail sales of the home appliance industry exceeds that of offline for the first time in its history. According to the report, in 2020, the retail sales of China’s home appliance market will reach 833.3 billion yuan, showing strong resilience under the impact of the epidemic; the contribution rate of e-commerce channels to home appliance retail will exceed 50% for the first time, and the promotion effect of online retail on home appliance consumption will be further enhanced; high-end products and household appliances will grow significantly, effectively promoting consumption upgrading and industrial transformation.
This shows the resilience and hope of the home appliance industry, and also marks the beginning of the next era for the whole industry in 2021.
Online household appliances consumption has become the main force
According to the data, in the first quarter of 2020, China’s home appliances shrank by 35.8% in a large scale, and then gradually improved. In the fourth quarter, the online and offline markets fully recovered, and the retail volume reached 294.1 billion yuan, the highest in the year. The report predicts that in 2021, the home appliance market will stop falling and rise. Under various favorable factors, the market scale is expected to return to the level of 2019.
Under the impact of the epidemic, the household appliance industry has been able to stabilize, and online consumption has played a mainstay role. Last year, the retail sales of online home appliances reached 419.9 billion yuan, up 14.48% year on year, 3 percentage points higher than that of the previous year; the proportion of online retail sales in the total retail sales of home appliances increased from 41.17% in 2019 to 50.4%, which is the first time that the annual penetration rate of online retail sales exceeded 50%.
In contrast, the online retail sales of physical goods accounted for less than 30% last year, so the impact of the epidemic was particularly obvious. People can’t help asking, how can the home appliance industry be “independent in the cold autumn”?
The answer is the degree of networking and digitization. Compared with other industries, the degree of networking and digitization of home appliance market is far higher than that of its peers. This benefits from the online platform, especially the strategy of laying a solid foundation for many years, which provides sufficient “ammunition” for the household appliance industry as a whole.
“If you want to be rich, build roads first.”. The philosophical meaning behind this slogan is that the material foundation will determine and change the superstructure. The fact that the home appliance industry can complete the handover of offline and online “scepters” during the epidemic prevention and control period is largely due to the networking and high degree of digitization of the home appliance industry and the good foundation of online consumption. Taking Jingdong household appliances as an example, for many years, Jingdong household appliances has adhered to the layout of the whole industry chain, efficient distribution speed, high-quality pre-sale and after-sale services, and implanted the concept of online shopping of household appliances into the depth of public awareness.
In the years of deep cultivation of Jingdong household appliances, the two retail channels, online and offline, infiltrate and influence each other in the integration, forming a new sales mode, and jointly serving household appliances consumption. The consumer market of home appliances provides a reference model for the digital and network development of other consumer fields.
The change of consumption concept profoundly changes the face of the industry
In the traditional home appliance market, the status of TV and ice wash can not be shaken. But affected by the epidemic, people have changed their ideas about how to consume and where to consume. People have become more rational about consumption and have more inward value thinking.
A survey shows that consumers, especially young consumers, have gradually changed from focusing on short-term satisfaction to pursuing quality and details. People care more about their health than they did before the outbreak. In the demand for goods, young people are more eager to control the quality, pay attention to long-term health and comfort, and are willing to spend more time and money in pursuit of good things.
This research coincides with the big data in the report.
The report points out that in the home appliance market in 2020, more and more consumers will recognize and accept the 4K / 8K smart TV featuring large screen, ultra high definition and artificial intelligence, the high-end air conditioner featuring intelligence, comfort and health, the high-end refrigerator featuring large volume, health disinfection and scientific storage, and the high-end washing machine featuring large capacity, health care and drying.
According to the data, in 2020, the retail volume and retail volume of TVs with a single product price of more than 10000 yuan in Jingdong increased by more than 70% on a year-on-year basis; the market penetration rate of Wi Fi intelligent air conditioning increased from 49% in the previous year to 63%; the retail volume and retail volume of 501 l-600 L large volume refrigerators increased by 60% and 57% on a year-on-year basis, respectively; the retail volume and retail volume of refrigerators with a price of more than 20000 yuan increased by 126% and 132% on a year-on-year basis. Clothes dryers have become the biggest dark horse in the washing machine market, and the market demand has expanded greatly, with the retail sales increasing by 87.4%, especially in the second and third tier cities, with the growth rates of 112.6% and 124.3% respectively.
It can be seen that the consumption upgrading in the field of home appliances is really appearing around us. Moreover, the epidemic can be said to be a “big test” for people’s health. Continuous science popularization and health education plays an important role in improving people’s health awareness.
Affected by this, household appliances, which focus on healthy life, sterilization and disinfection, have become new upstarts in the market. In 2020, the market scale of dishwasher will accelerate its expansion, with a year-on-year growth of 30.75%; the online retail sales of dishwasher with wireless hand-held vacuum cleaner and electric mop will increase by 1885%; and the year-on-year growth of electric mop will exceed 260%. The retail performance of upgraded goods and functional household appliances is outstanding, which reflects people’s demand for household appliances consumption to improve the quality of life. The consumption upgrading and the transformation of household appliances industry are accelerating at the same time.
Pushing “new consumption” and selling “high-end” will become the main innovation direction of home appliances in the future
The report points out that “new consumption” and “high-end” will be the main innovation direction of 2021 household appliances.
Spring river water warm duck prophet. On the one hand, reengineering new products has become the theme of the supply side of home appliances. Around the consumer’s demand for intelligent, healthy, differentiated and personalized products, there will be new functions, new models, new products and even new varieties in the future.
On the other hand, the concept of high-end and new consumption will also have a profound impact on the channel side and platform side. Because consumers want to get truly high-end and comfortable services in the whole chain.
Adhering to the excellent foundation of suppliers of good life and service providers of industrial upgrading, JD home appliances has put forward a new brand proposition of “rejuvenate your life” this year, advocating high-quality consumption, and unswervingly promoting the structural upgrading of the industry from three aspects of high-end channels, high-end services and high-end experience.
In the process of channel transition from offline dominated to online dominated Omni channel mode, Jingdong appliance takes advantage of online channel, more than 15000 offline appliance stores, city flagship stores and super experience stores to realize the diversified development mode of flow online, experience in stores and consumption everywhere, and enhance its strategic position.
Secondly, the high-end service is based on the mature big data and artificial intelligence technology of Jingdong household appliances. While deeply understanding the needs of users, it also transforms and upgrades its own service chain to give greater development space to household appliances brands.
In addition, Jingdong appliance uses offline stores to meet the experience needs of consumers, strengthens the sense of substitution of store scenes and the satisfaction of the whole shopping process, and realizes the transformation from the traditional format of frequent decoration, weak goods, shelf display and countless words to the new format of immersive scenes, content bearing, digital transformation and trendy products, bringing a real “new quality revolution” to the market ”。