Development of China’s small household electrical appliances industry

    Chinese home appliance industry has already entered the era of winning a brand. Chinese home appliance industry, the market experienced group of cold today, still found a “family” is the rise of fashion, personality, elegance, convenience, practical, characterized by deeply favored to win the 10 million households and win the market at the same time, it hitches a ride the profit and growth sub-sectors banner, that is, small electrical appliances.

    Small household electrical appliances according to the functions are divided into four categories:

    1, personal life, care, health care of small household appliances, such as hair dryers, electric shavers;

    2, daily household small appliances, such as vacuum cleaners, electric irons, humidifiers;

    Third, a small catering kitchen appliances such as microwave ovens, induction cooker, rice cooker;

    4, bathroom small appliances, such as electric water heaters and so on. From scratch, from small to big, from weak to strong, now, China’s small household electrical appliance industry has entered a robust growth period and become a real big market “in 2006 China’s total annual household electrical appliance manufacturing companies to achieve cumulative total industrial value of 479,755,766 thousand dollars, compared with growth of 20.07 percent over the same period the previous year, achieving total annual sales revenue of 454,272,552 thousand dollars, compared with the previous year growth of 18.84 percent over the same period in 2006 to realize an annual cumulative total profit of 11,394,072 thousand dollars, compared with same period last year 22.22 % As at the end of December 2006, above-scale enterprises industry-wide the number of units up to 2001.

    In 2006 from January to December cumulative production of 55,701,655 units nationwide microwave oven, compared with the same period in 2005 increased 9.55% in 2006 from January to December cumulative production of 88,798,178 national rice cooker, as compared with the same period in 2005 increased 42.11% in 2006 from January to December the national aspiration smoke machine cumulative production of 10,898,703 units, compared with growth of 45.74 percent over the same period in 2005 the national total output of electric water heaters 8,396,052 units, compared with 2005 growth of 23.03 percent over the same period in 2007 China’s output of small household electrical appliances continue to uphold the momentum of growth to reach 1.44 billion units, up 12.7% 20,032,007 compound annual growth rate of 12.5% while sales in the Chinese small home appliance market reached 97.19 billion yuan. The global financial crisis and economic slowdown against the backdrop of small household electrical appliances but the decline in the overall growth in the domestic appliance industry is unique.

    2008 Domestic small-appliance sales in first three quarters of businesses are making to grow substantially. Product quality and stability, the kitchen, home, lifestyle small household electrical appliances have gained steadily, technological content of products has also been strengthened. Brand building, the small household electrical appliances have emerged in the field in order to TCL Glanz, Gree, square too, Asia is, nine-yang,it represented by a large number of well-known brand. Marketing network architecture, and has formed a nationwide group of professional small home appliances agents, distributors, and Gome, Suning and other chain stores account for a significant proportion of the system.

    At the same time, small household electrical appliances industry, there have been more issues: such as safety relevance, quality assurance, marketing and service system, many problems; small household electrical appliances homogenization of serious, innovative ability is low; industry competition confusion, frequent price wars and so on. Thus, small household appliances enterprises to establish the brand values, and focus on product innovation, and actively carry out technological development, adjust the relationship between quality and profits, focusing on after-sales service system was established.

Different from traditional home appliances, small household appliances sold in China is still in development stage, as consumers increased demand for small household electrical appliances of the type and quantity are upgrading, small household electrical appliances on average profit margins for the business benefits are also high . The future of small household electrical appliances in China, both profitability and growth will rise to about 30%.
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