From the perspective of the global western small household appliance market, it has gradually moved eastward since the 1980s, and has gradually formed a new production area of ​​home appliances such as East Asia, Eastern Europe and Latin America. China has taken over the world's major small home appliance orders with its cost, scale and technology support. In addition, in addition to the rapid growth in the export volume of small household electrical appliances in China, the proportion of high-end refined products has also increased, reflecting the increasing competitiveness of Chinese-made small household electrical appliances in the international market.
At present, the European market imports Western-style small household appliances from China accounted for 40%-45% of its imports; the United States imports from China account for about 70-75% of its imports, Canada accounts for about 50% of its imports, and Japan accounts for More than 80% of its imports, Europe and the United States and other developed countries and regions, small household appliances consumption is highly dependent on Chinese manufacturing.
Thanks to the changes in the pattern of international division of labor during the reform and opening up period, China’s small household electrical appliance manufacturing enterprises have experienced more than a decade since the foundry, relying on China’s inherent advantages in labor, land, energy, preferential policies, industrial support, and talent pooling. Development has made great progress in production, R&D and design, and now has the foundation to move to ODM and even OBM.
At present, the average number of small household appliances owned by Chinese households is far lower than that of developed countries in Europe and the United States. As the income level of Chinese residents increases, the growth potential of China's small household appliances market is huge, and it is predicted that the next 10-20 years will be a golden period for the development of small household appliances industry.
The profit of 15%-30% in the field of small household appliances is becoming a new profit growth point in the home appliance industry. Many giants of major power companies have entered the field of small household appliances. In general, the number of competitors in the small household appliance industry is large, the scale is small, the market competition is fierce, the industry is facing reshuffle, and the strength of leading enterprises will be further consolidated.
According to the analysis of the "Western Small Appliances Industry Market Demand and Investment Planning Analysis Report" released by the Prospective Industry Research Institute, the demand for Western-style small household appliances will grow steadily and the domestic market will also expand steadily. It is predicted that the foreign market demand will be 2023. It will reach 2.1 billion units, and domestic demand is expected to reach 300 million units in 2023.
Domestic and foreign demand forecast for Western-style small household electrical appliances in 2018-2023 (unit: 100 million units)
From the perspective of European and American markets, the average household has more than 30 small household appliances, the market capacity is large and the use period is short. The interest and fashion make the market for small appliances replacement large. At present, in addition to Philips also owns its own factory, almost all of the world brands purchase products through OEM/ODM, which is only doing branding and marketing promotion, while China has comparative advantages and becomes the manufacturing base of these small household appliances. According to forecasts, the foreign market is expected to have a demand of 1.7 billion units in 2018, and the export price will maintain a steady and small upward trend. Therefore, China’s Western-style small household appliance manufacturers, especially those with established strong customer relationships and quality advantages, have established , will receive a large number of OEM / ODM orders, thus having a strong ability to select large customers and product pricing capabilities.
Second, the future development trend of the domestic marketThe domestic market is a market where the potential of Western-style small household electrical appliances enterprises is growing rapidly. First, with the popularity of European and American culture in the eastern countries, Western-style small household appliances are increasingly favored by Chinese residents, especially the younger generation. In the case of China's rapid economic growth, the income of residents has risen sharply, and Western-style small household appliances have great potential; Second, the number of small household appliances owned by Chinese residents is very low, and there is still huge room for development compared with more than 30 pieces in Europe and America. Third, the global market share of the Chinese market is increasing year by year, regardless of the proportion of China’s population accounting for 20% of the world. In accordance with China's rapid economic growth, the future GDP will account for the global proportion, and the domestic small household appliances market will face explosive growth opportunities.
Therefore, relying on the huge domestic market, Western-style small household electrical appliance enterprises, especially leading enterprises with strong R&D and innovation capabilities, develop small-scale home appliances with their own brands for Chinese consumption habits, establish brands and channels, and actively expand the scale of domestic OBM business, China Small household appliance companies will continue to gain profits from both ends of the smile curve (product innovation and brand marketing).
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