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The small home appliance market will be reshuffled in 2019. Who will win?
According to the '2018 Power Grid Purchase Analysis Report', in 2018, China's national grid purchases accounted for 35.5% of the overall home appliance market, and online shopping became the mainstream consumption method for the home appliance market. In terms of categories, the small household appliances market performed outstandingly, with an increase of 39.5%. The retail sales exceeded the 100 billion mark and the results were brilliant. Compared with the home appliance market that has touched the ceiling of the industry, the large-scale outbreak of the small appliance market will also bring new growth points to the entire home appliance market.
At present, China's small household appliance market has experienced a long gestation period. With the external demand environment and internal transformation and upgrading of the industry, there will be a huge market potential and growth space, especially with high-end, smart and healthy small household appliances. Innovation and evolution, the small household appliances market is also unique in the overall downturn of the home appliance industry. good environment will surely usher in fierce market competition. Traditional home appliance giants and Internet companies have entered the market. large number of small household electrical appliance enterprises have poured in first, and they have quickly gained a foothold in the small household appliances market with the help of e-commerce platforms.
The greater the market potential, the more intense the competition will be, and the fierce competition will surely usher in the reshuffle of the market. In the first-line market competition, in the face of the inherent advantages of traditional home appliance giants, small household electrical appliance enterprises are always in a dilemma of “passive response, fast follow-up”, but in the fast-developing Internet arena, small household electrical appliance enterprises also have fast and flexible Features. In the end, under the series of competitions such as brand, product, marketing and after-sales, will the small household appliance market be “small and beautiful” or “more and more complicated”? Who can go longer and longer for traditional home appliance giants and small household appliances companies?
With the improvement of China's national consumption level and the change of consumption brought about by the upgrading of consumption, healthy life and quality life have become the direction of people's pursuit. Especially after the 90s and 00s, consumers pay more attention to the personality, technology and fashion lifestyle. The products of niche home appliance companies are more diversified, and the design is more fashionable, trendy, and personalized. Compared with traditional home appliances, it can quickly accumulate user groups. In addition, the marketing model of small home appliance brands can keep up with the trend of the times. Weibo, short video, and vibrato are all major marketing positions. The “grassing” with beauty bloggers, parent-child bloggers, and constellation people can directly drive sales.
In terms of distribution, the distribution service of small household appliances is far more convenient and faster than the large-sized goods such as household appliances, and the requirements for logistics and warehousing of small household electrical appliances enterprises are relatively simpler. At the same time, the price of small household appliances is relatively low, and the price/performance ratio is not the first factor that consumers consider. Whoever attracts more attention will become the market leader.
However, this does not mean that these small and medium-sized enterprises can dominate the small household electrical appliance market. In the process of speeding up the staking of different brands, the threshold of small household electrical appliances technology, production and sales is not high, “low product qualification rate” and “after-sales experience”. Poor' has become the two major pain points in the small appliance market. Compared with the traditional home appliance giants, small household electrical appliance enterprises lack technical strength and support in product development and quality. Low-quality, low-cost, and shoddy products abound. Even some small factories and small workshops still rely on simple assembly of a large number of inferior small household electrical appliances. Consumers are easily fooled. It is understood that at the end of 2018, in the national supervision and spot check of the quality of small household electrical appliances organized by the General Administration of Market Supervision, the rate of non-conformity reached more than 20%. In local spot checks, the quality problems of small household appliances also frequently appeared.
Therefore, whether it is a major appliance brand, a small home appliance enterprise and an Internet company, each has its own advantages and disadvantages. From this perspective, the competition pattern of the entire small household appliance market is constantly changing, and it is bound to usher in a major reshuffle. At present, the small household appliance industry is still in its infancy. It is estimated that the size of China's small household appliances market will reach 401.5 billion yuan in 2019, and the compound annual growth rate in the next five years will be about 12.63%. In the future, how to accelerate the innovation and R&D and product structure upgrade, from 'price', 'marketing' to 'value', is the key factor for small appliance brands to seize market space.
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