In the consumer market last year, the home appliance industry gave a beautiful answer.
Despite the impact of multiple objective factors, such as the outbreak of the epidemic, economic transformation and upgrading, China’s home appliance market will be suppressed first and then increased in 2020. According to the latest report of China’s home appliance market in 2020 issued by China Electronics and Information Industry Research Institute, the scale of China’s home appliance market reached 833.3 billion yuan last year.
It can be said that the home appliance industry has passed the storm. It is worth noting that in the post epidemic era, the challenges facing the home appliance market are still severe: on the one hand, the industry’s current situation of both volume and price falling, and on the other hand, the consumer market that needs to be pried open. How to grasp the pulse of the market and find a new space for home appliance consumption has become a common concern of the industry.
Quality revolution in the market
As a mass consumer product, home appliances have always been attached great importance. In this year’s “government work report” of the two sessions, it is mentioned that we should steadily increase the consumption of automobiles, household appliances and other commodities. The government’s key work is “naming” the consumption of household appliances, which brings hope and challenges to the household appliance industry in the post epidemic era.
From the perspective of development, consumption upgrading is a new opportunity for China’s economic reform and development. After years of rapid development, people’s demand for a better life has become increasingly strong. Consumers who have solved the “yes” and “no” problem quickly shift their consumption demand to “better” and “better” – that is, the added value of new technology, new form and new categories of household appliances for life.
From the market point of view, the data prove that China’s home appliance market is ushering in a quality upgrade. According to inertia, TVs and refrigerators with more than 10000 yuan belong to high-end products. According to the data of the report, in 2020, the retail sales and retail volume of TV sets with more than 10000 yuan on the Jingdong home appliance platform increased by more than 70% year-on-year, so fast and fierce that the industry can not ignore.
It’s not just the price, it’s the quality. The function, technology and quality of traditional black and white electric appliances and household appliances which have emerged in recent years are rising rapidly. For example, 4K and 8K TVs mainly focus on super large screen, ultra high definition and artificial intelligence; refrigerators with large volume, health disinfection and scientific storage, and artificial intelligence auxiliary functions are becoming more and more popular; washing machines with health washing and care, disinfection and sterilization, and clothes drying and protection functions are also popular, and are accepted and recognized by the majority of consumers.
Behind the quality revolution is a new challenge for the home appliance industry. The stock competition of traditional products is unsustainable, the consumption market and consumption habits have undergone profound changes, so it is imperative to find new consumption space.
Iteration of consumer groups to boost new consumption onto the stage of the times
The home appliance industry must meet the challenges of new environment, new changes and new requirements. Its inevitability comes from the iteration and change of consumer groups.
In the past 40 years of reform and opening up, China’s economy has developed rapidly and made remarkable achievements. According to the principles of economics, the rapid development of the economy will inevitably lead to the development and growth of the middle class. From the perspective of consumption characteristics, the growth of per capita consumption and the rise of middle class consumption are the general trend.
Rich people are bound to be unable to meet the simple use of functions, but are more in favor of diversified and personalized consumer demand, which also promotes further stratification and changes in the home appliance industry.
According to the data of Jingdong home appliances, the main consumers of the platform are between 20 and 45 years old, and the “three high” characteristics of high education, high income and high consumption are obvious. They have advanced consumption concepts, are easy to accept new things, and are willing to pay for a better quality of life. How to meet the new requirements of the main consumer groups is a must for the home appliance industry.
According to statistics, in 2020, China’s household electrical appliances, such as dishwasher, hand-held vacuum cleaner, hairdresser, wall breaker, air fryer, massage chair, cleaner and so on, will be in hot sale to varying degrees, which will activate the dull household electrical appliances market. This phenomenon is of great significance. The hot sales of these unnecessary products that can improve the sense of happiness in life have sounded the clarion call for the quality revolution.
The report also pointed out that the retail performance of upgraded goods and subdivided functional household appliances is outstanding, reflecting people’s demand for household appliances consumption to improve the quality of life, and the consumption upgrading and transformation of household appliances industry are accelerating at the same time. In 2021, the consumer market of household appliances is expected to usher in a qualitative change in product structure adjustment, which will promote consumption upgrading and industrial transformation.
The essence of quality revolution is “life revolution”
Whether it’s consumption upgrading or quality revolution, as a product closely related to people’s sitting and walking, the essence and driving force of the upgrading of home appliance industry are people’s pursuit and yearning for a better life.
The report of the 19th National Congress of the Communist Party of China clearly pointed out that “the main social contradictions in our country have been transformed into the contradictions between the people’s growing needs for a better life and the unbalanced and inadequate development”. In this new era, the re understanding of the main contradictions will lead the future development trend and direction. In the process of solving the imbalance and insufficiency of development, it breeds the long-term investment logic and direction in the future, and the home appliance industry is no exception.
In the process of people’s pursuit of a better life, they have completed the process of home appliances from scratch and from existence to excellence. The mature categories of home appliance market have all entered the peak of upgrading, and structural upgrading is imperative.
And Jingdong appliance is exactly the leader of this revolution. At the beginning of the new year, Jingdong home appliances put forward the brand proposition of “rejuvenate your life”, delivering the new concept of healthy and intelligent quality of life to consumers, and opening up a new consumer space for home appliances.
Over the years, Jingdong appliance has been holding the pulse of consumer demand in the appliance market. Relying on the big data mining and artificial intelligence technology accumulated over the years, Jingdong household appliances creatively launched the c2m reverse customization “Jingpin household appliances” and achieved success, which fully proves that Jingdong household appliances has a profound understanding of the consumer market.
In recent years, JD home appliances has also opened up its own technology, cooperated deeply with home appliance manufacturers, promoted the transformation and upgrading of the home appliance industry, continuously introduced new products and new technologies with new quality and new ideas, and laid a solid foundation for a better life in consumers’ families.
In addition, under the background of consumption upgrading, people’s requirements for the quality of life are gradually increasing. When purchasing electrical appliances, they not only need better performance and better quality, but also have new requirements for service experience. Businesses need to provide one-stop service covering the whole process of pre-sale, in sale, after-sale and value-added services. For a long time, JD home appliances has provided consumers with high-quality shopping experience with its deterministic service and transparent process, and has made contributions to economic growth and people’s new quality life.