White Goods in China 2009: A Market Analysis

Abstract

REPORT COVERAGE

This report covers the market for white goods in China.

• Sewing machines
• Cookers
• Microwave ovens
• Washing machines
• Dryers
• Air conditioners
• Cooling fans
• Fridge-freezers
• Freezers
• Refrigerators
• Dishwashers
• Water heaters
• Electric showers
• Water dispensers
• Range hoods

KEY REPORT FEATURES

• An overview of China' s total non-food market with sales statistics up to 2008;
• The total value of the white goods market, including sector breakdowns, up to 2008;
• Value provincial and urban/rural breakdown, up to 2008;
• Value sectoral analysis by subsector, up to 2008;
• Market shares up to 2008;
• Retail pricing trends for televisions by province up to 2008 (and store check prices 2009);
• Volume & value forecast total televisions market in China up to 2013;
• Key contacts & trade events;
• Overview of China' s demographics and macroeconomics.

Executive Summary

China remains the world' s fastest growing large economy, and foreign investors and marketers continue to scope the country for new ways into the growing wallets of Chinese consumers. The truth, of course, is that China is a tough market anyway, and none perhaps is tougher than the white goods market. Tough, because the competition is so fierce, margins so tight and, until recently, the available market was shrinking.

The rural rebate scheme for reduced price goods to rural consumers has made the available market a lot bigger though, over the past few years. Recent estimates of the 2009 Chinese New Year (CNY) retail figures show that the scheme is beginning to have a significant effect. Official estimates for the CNY period show sales of household electric appliances grew by 17.8% over the same period in 2008.

Margins may be tight, but when volume sales are surging ahead like this, the retailers and manufacturers continue to have the opportunity to make a profit, and this is keeping the overall market very much alive. Although the white goods manufacturing industry is in need of its ongoing process of consolidation, this could provide new opportunities for outside investors looking to buy a stake in the market.

Despite the strong competition, many opportunities lie in developing new products to suit the new consumer groups emerging in China. Not only are the richer Chinese moving up the value ladder, but so are many first time consumers in provincial towns and rural areas, across a wide range of lifestyles in each region, each group with its own product and service needs, creating a much more diverse market environment than before.