1. kitchen appliances industry overview

1. Kitchen appliance industry definition and classification

Kitchen appliances refer to household appliances used for kitchen cooking, cleaning, disinfection and other functions, and are one of the indispensable facilities in residents' lives. According to the different functions and forms, kitchen appliances can be divided into the following categories:

Food cooking: including gas stoves, microwave ovens, rice cookers, ovens, induction cookers and other products, mainly used for food heating, cooking, cooking and so on;

Fume treatment category: including range hood, integrated stove and other products, mainly used to absorb and purify the smoke and odor generated during the cooking process of open fire;

Disinfection category: including disinfection cabinet and other products, mainly used for disinfection of tableware, food materials, etc;

Food processing category: including dishwashers, garbage disposers, water purifiers and other products, mainly used for cleaning and processing of food materials and tableware;

Integrated category: including integrated stoves, integrated sinks and other products, mainly to integrate multiple functions in one device, saving space and cost, improving efficiency and beauty.

2. Kitchen appliances industry development process

The development of the kitchen appliance industry began in the late 1970 s and has gone through the following stages:

The first stage (1979-1997): In the early stage of reform and opening up, the market economy rose, the commodity economy developed rapidly, and the form of kitchen electrical appliances continued to innovate. Benefiting from the expansion of China's gas development area, gas stoves have gradually replaced old stoves such as coal stoves with their superior performance, safe and convenient product experience, and the market penetration rate has increased rapidly. At the same time, the product form of range hoods has gradually begun to mature. Products such as direct suction range hoods have gradually replaced old exhaust fans. Many manufacturers have actively introduced range hood technology from abroad to gradually solve the problem of high noise and poor purification effect of range hoods. And other issues.

The second stage (1998-2008): during the period of housing commercialization, the area of residents' kitchen increased significantly, the degree of kitchen matching and electrification increased greatly, and the concept of overall kitchen began to spread. At this stage, the requirements of Chinese residents for kitchen appliances have gradually increased, and the design concept, product quality and user experience of kitchen appliances have been continuously improved. On the one hand, emerging kitchen appliances such as disinfection cabinets, induction cookers, and ovens have begun to emerge in the market. On the other hand, the thermal efficiency of gas stoves has continued to improve. European-style range hoods have been generally recognized, and safety, environmental protection and cost-effectiveness have increasingly become consumers. The focus of choosing kitchen appliances.

The third stage (since 2008): the development of kitchen electricity industry in the new period, in this stage, the design and production technology of traditional kitchen electricity products such as gas stoves and range hoods are becoming more and more mature, the per capita ownership of kitchen electricity products in economically developed areas is gradually saturated, the dominant enterprises in the industry begin to sink their sales channels to 3. fourth-tier cities to obtain incremental customers, and the traditional product design also improves the level of intelligence and human-computer interaction through the introduction of Internet technology. At the same time, new product forms began to appear, side suction range hoods were rapidly promoted, and products such as integrated stoves and integrated sinks brought consumers a better user experience through the combination of different product functions and simple and integrated product design., Quickly become a highly competitive product variety in the kitchen appliance industry.

2. Kitchen Appliances Industry Market Status

1. Kitchen appliances industry overall market size

Since the reform and opening up, the level of urbanization in China has been continuously improved, the income level of residents has been rising year by year, the consumption concept has been continuously upgraded, and the health awareness has been gradually enhanced. China's kitchen appliance manufacturing industry, especially the field of large-scale kitchen appliances, has developed rapidly, and the market scale has expanded rapidly. According to Shangpu Consulting Group, the retail size of the kitchen appliance market (excluding integrated stoves) in 2020 is 101.9 billion yuan, an increase of 9.45 over 2019, and the retail size of the kitchen appliance market (excluding integrated stoves) in 2021 is 1110 yuan.billion yuan,2022year1210Billion yuan, year-on-year growth9.5%。The main reasons are:① Affected by the new coronary pneumonia epidemic, residents spend more time at home and demand for kitchen environment and equipment increases;The promotion of infrastructure construction and the increase in the penetration rate of kitchen appliances in rural areas;③ The technological innovation and rich categories of kitchen electrical products have attracted more consumers.

2. Market size of integrated stove products

Although my country's first integrated stove product was launched on the market as early as 2003, due to factors such as low technical maturity and high price of early integrated stove products, consumer acceptance is low and the market scale is small. After more than ten years of technology accumulation and improvement, the integrated stove industry has made great progress, and the market scale has shown a rapid development trend in recent years. According to the data of Shangpu Consulting Group, from 2020 to 2022, the retail sales scale of China's integrated stove market increased from 25.6 billion yuan to 35 billion yuan, and the retail volume of integrated stoves increased from 3.9 million to 4.2 million units, with a compound annual growth rate of 32.4, and the growth rate of retail sales and retail volume was faster.

Integrated stove products have direct substitution for traditional range hood products, and the market scale growth rate in recent years is much larger than that of the traditional range hood industry. In the future, with the improvement of national income, the improvement of national requirements for the kitchen environment, and the gradual improvement of the market recognition of integrated stoves, the replacement speed of traditional range hoods by integrated stoves will be accelerated, and the market space will be broader.

3. Integrated sink and dishwasher market size

The advent of the integrated sink after the integrated stove, its product design concept mainly draws on the idea of integrated stove, through the integration of water purifier, garbage disposal, dishwasher and other functions in the traditional sink to meet the diverse product needs of consumers. At present, many kitchen appliance manufacturers have entered the integrated sink industry one after another, and have developed different series of integrated sink products through design improvement and functional integration of traditional sink products. Some kitchen appliance manufacturers sell integrated sinks as auxiliary products for kitchen appliances such as integrated stoves and gas stoves. But overall, the current market penetration of integrated sinks is low, the market size is small, and the industry is still in its infancy.

In recent years, the dishwasher industry has developed into one of the fastest growing categories in China's home appliance industry. Thanks to the improvement of the level of urbanization, the change of residents' living habits, the increase of per capita disposable income and other positive factors, the dishwasher market has a good momentum of development in China. From the perspective of the overall market, in 2022, the dishwasher market will expand rapidly, with retail volume and retail sales increasing by 40% and 51% respectively, reaching 6.5 million units and 12.4 billion yuan. Expected full year 2023The demand for the dishwasher market will continue to grow, and retail volume and retail sales are expected to break through.10 million and 20 billion yuan. In terms of product types, embedded and desktop dishwashers still dominate, accounting for more than 90% of the total.

Market Demand Analysis of 3. Kitchen Appliances Industry

1. Analysis of market demand sources in the kitchen electricity industry

According to the analysis of the source of demand, the demand for kitchen and electric products mainly comes from two aspects. On the one hand, the demand for kitchen and electric products is increased by the decoration of residents' kitchens during the construction of new houses, and on the other hand, the demand for renewal of kitchen and electric products generated during the renovation of old kitchens.

(1) The demand for new real estate is an important source of demand in the current kitchen electricity market.

The kitchen is an indispensable facility in the lives of residents, and it is also an indispensable link in the decoration of new houses. Therefore, the demand for new real estate is an important source of demand in the current kitchen electricity market. Considering that the appearance of kitchen appliances will directly affect the overall visual effect of the kitchen and the daily experience of users, it has become a common practice for consumers to include the purchase of kitchen appliances in the consideration of home decoration, so its sales volume has a certain correlation with the real estate cycle. In the case of range hoods and gas stoves, for example, the growth rate of the market size of these products is highly correlated with the growth rate of residential sales area. According to data from Shangpu Consulting Group, the national commercial housing sales area in 2022 was 1358.37 million square meters, a year-on-year decrease of 24.3 percent; from January to April 2023, the commercial housing sales area was 376.36 million square meters, a year-on-year decrease of 0.4 percent. In the context of the downturn in the real estate market, the kitchen appliance industry is also facing the challenge of reduced demand and intensified competition.

(2) Old kitchen renovation and product renewal will affect the long-term market demand of the kitchen electricity market.

From the perspective of product attributes, kitchen appliances such as range hoods, gas stoves, and integrated stoves have certain similarities with refrigerators and washing machines, and they are all essential household items after the improvement of residents' living standards. At present, the number of range hoods installed in the eastern part of China's more economically developed areas is considerable, and has gradually entered the renewal period. At the same time, the maturity of kitchen appliance products and technological breakthroughs have made the quality, smoke absorption effect and overall appearance of new range hoods and integrated stoves and other products launched by major kitchen appliance enterprises in recent years have been greatly improved and improved compared with previous products. With the continuous investment in advertising by kitchen appliance enterprises and the promotion of brand awareness, it is expected that the demand for renovation of old kitchens will further ferment in the future, the demand for the renewal of kitchen electric products will further increase. Therefore, in the long run, old kitchen renovation and product renewal will significantly affect the future market demand of large kitchen electric market.

2. Future demand prospect analysis of kitchen electricity industry

(1) Increased health awareness and per capita disposable income, and gradually increase the rate of household kitchen appliances.

Cooking with open fire and cooked food are the most important dietary methods for Chinese residents at present. However, the high-temperature oil fume generated during the cooking process of open fire contains a variety of harmful substances. These substances can induce respiratory diseases and cause damage to the skin. Old kitchen appliances such as coal stoves, exhaust fans and other products are inexpensive, but they are often time-consuming and laborious in terms of food cooking and fume treatment. With the improvement of per capita disposable income of Chinese consumers and the strengthening of health awareness, more and more consumers begin to pursue a healthier and cleaner kitchen life. The use of gas stoves, range hoods, integrated stoves and other kitchen electrical products has been recognized by more and more consumers.

According to Shangpu Consulting Group, in 2022, the per capita disposable income of urban residents in China will be 49283 yuan and that of rural residents will be 20133 yuan, an increase of 15.5 percent and 25.7 percent respectively over 2019. With the increase of residents' income level, the retention rate of kitchen appliances has gradually increased. In 2021, the household ownership rate of China's kitchen and electrical products increased, with the household ownership rates of lampblack machines, gas stoves, disinfection cabinets, microwave ovens and other major categories being 77.3 percent, 79.8 percent, 36.4 percent and 52.1 percent, respectively, up 1.5 percentage points, 1.3 percentage points, 1.7 percentage points and 0.9 percentage points, respectively, compared with 2019. It is expected that with the advancement of urbanization and the improvement of infrastructure construction in rural areas in the future, the retention rate of kitchen electrical products will continue to increase.

(2) Kitchen appliances to high-end, energy saving and environmental protection, intelligent direction

With the upgrading of the consumption concept of Chinese residents, the demand for kitchen appliances is not only limited to the satisfaction of basic functions, but also pays more attention to the quality, appearance and experience of products. Therefore, the development of kitchen appliances to high-end, energy saving and environmental protection, and intelligent has become a generally recognized trend in the industry.

High-end: high-end kitchen appliances have better performance, more refined design and better service, which can meet consumers' pursuit of quality life. At present, my country's high-end kitchen appliance market still has a large space, especially in economically developed areas such as first-tier cities and new first-tier cities. According to the data of Shangpu Consulting Group, the high-end trend of integrated stoves, range hoods and gas stoves in China's kitchen and bathroom appliances in 2022 is obvious. In 2022, the price segment above 8000 yuan in the integrated stove offline market accounted for 53.5, an increase of 1.7 percentage points from 2019; the price segment above 6000 yuan in the range hood offline market accounted for 21.7, compared with 2019 An increase of 1.2 percentage points; the price segment above 3000 yuan in the gas stove offline market accounted for 29.2, an increase of 5.0 percentage points from 2019. It is expected that throughout 2023, as consumers' demand for the quality and function of kitchen appliances continues to increase, the high-end of these three categories will continue to grow.

Energy conservation and environmental protection: energy conservation and environmental protection is an important theme of the current social development, but also an important consideration for consumers of kitchen appliances. Energy-saving and environmentally friendly kitchen appliances can not only reduce the user's use cost, but also reduce environmental pollution, which is in line with the development concept of green and low-carbon. At present, the major kitchen appliance manufacturers are constantly improving the energy-saving and environmental protection performance of their products, such as the use of more efficient motors, more reasonable air duct design, more advanced purification technology, etc., to meet the requirements of consumers and policies.

Intelligent: Intelligent is the current development direction of the home appliance industry, but also the innovation point of the kitchen appliance industry. Intelligent kitchen appliances can realize remote control, automatic adjustment, voice interaction, data analysis and other functions through the Internet, Internet of Things, artificial intelligence and other technologies to improve the convenience and comfort of users. At present, major kitchen appliance manufacturers are actively developing and promoting intelligent products, such as supporting mobile phone APP control, supporting Xiaoai classmate voice control, supporting intelligent menu recommend, etc., to attract more young consumers.

4. kitchen appliances industry competition pattern

1. Overview of competition in the kitchen appliance industry

The kitchen appliance industry is a highly competitive industry with many participants, including well-known domestic and foreign brands, domestic regional brands and unbranded products. According to different product types, the competitive landscape of the kitchen appliance industry is also different.

Gas stove market: The gas stove market is a relatively mature and stable market, with low product technology thresholds, many competitors, and low market concentration.The top five brands in China's gas stove market in terms of retail sales are Wanhe, Fangtai, Boss, Vantage and Midea, with a combined percentage46.4 per cent, with Wanhe ranking first with 12.7 per cent.

Range hood market: The range hood market is a relatively growing and changing market, with higher product technology thresholds, fewer competitors, and higher market concentration.The top five brands in China's range hood market in terms of retail sales are Boss, Fangtai, Vantage, Wanhe and Midea, with a combined percentage66.6 per cent, with the boss ranking first with 19.8 per cent.

Integrated stove market: the integrated stove market is a relatively new and active market, with high product technology threshold, more competitors and low market concentration. The top five brands in the retail sales of China's integrated kitchen market are Fangtai, Boss, Huadi, Shuaikang and Wanhe, accounting for 52.9 percent of the total, of which Fangtai ranks first with 16.8 percent.

2. Kitchen appliances industry competitive advantage analysis

The competitive advantages of the kitchen appliance industry are mainly reflected in the following aspects:

Brand advantage: brand is one of the core competitiveness of the kitchen appliance industry, brand awareness and reputation directly affect the purchase intention and loyalty of consumers. There are a number of enterprises with high brand influence and loyal user groups in the kitchen appliance industry, such as boss, Fangtai, Huadi and so on. Through years of market accumulation and advertising investment, these enterprises have established their own brand image and reputation, won the trust and recognition of consumers, and thus occupied a greater advantage in the market competition.

Technical advantages: Technology is one of the core competitiveness of the kitchen appliance industry, and the level of technology directly affects the performance, quality and effect of the product. There are a number of enterprises with strong technological innovation ability and R & D investment in the kitchen appliance industry, such as Midea, Bosch Siemens, Electrolux and so on. Through continuous technological research and development and innovation, these enterprises have launched a series of products with advanced technology and functions, which meet the diversified and personalized needs of consumers for kitchen electrical appliances, thus occupying a greater advantage in the market competition.

Channel advantage: channel is one of the core competitiveness of the kitchen appliance industry, channel coverage and service level directly affect the sales and after-sales of products. There are a number of enterprises with strong channel construction and service capabilities in the kitchen appliance industry, such as Wanhe, Shuaikang, Boss, etc. These enterprises have established extensive and stable sales networks, covering all regions and all levels of the country, and providing professional And caring services have won the favor and support of consumers, thus occupying a greater advantage in market competition.

5. Kitchen Appliance Industry Development Trend

1. The market size of the kitchen appliance industry will continue to grow

Full Year of 2023China's kitchen appliances market retail scale (excluding integrated stoves) will reach32 billion yuan, a growth rate of 9.5; The retail scale of the integrated stove market will reach 41 billion yuan, a growth rate of 32.4. In the future, with the improvement of the income level of Chinese residents, the advancement of urbanization, and the upgrading of consumer consumption concepts, my country's kitchen appliance manufacturing industry will develop in the direction of high-end, energy saving, environmental protection, and intelligence. The category of kitchen appliances will continue to increase, and the market prospects Broad.

2. Kitchen appliances industry competition pattern will be further optimized

In the future, as consumers' demand for kitchen appliances continues to increase, competition in the kitchen appliance industry will become more intense. The dominant companies in the industry will further consolidate and expand their market share, and the disadvantaged companies in the industry will face elimination and withdrawal. pressure. It is expected that the competitive landscape of the kitchen appliances industry in the future will present the following characteristics:

Brand concentration will be further improved: brand is one of the core competitiveness of the kitchen appliance industry, with a higher brand influence and loyal user base of enterprises will occupy a greater advantage in the market competition, through continuous market development and brand building, improve their market share and profit margin. It is expected that the brand concentration of the kitchen appliance industry will further increase in the future, and the head brands in the industry will occupy a larger market share and form a strong brand barrier.

Product differentiation will be further strengthened: products are one of the core competitiveness of the kitchen appliance industry. Enterprises with strong technological innovation capabilities and R & D investment will have a greater advantage in market competition. Through continuous product development and innovation, launch more products that meet consumer needs and preferences, and improve their product competitiveness and added value. It is expected that the product differentiation of the kitchen appliance industry will be further strengthened in the future, and the advantageous enterprises in the industry will create their own product characteristics and advantages through technological innovation, functional integration, appearance design and so on.

Channel diversification will be further deepened: Channel is one of the core competitiveness of the kitchen appliance industry. Enterprises with strong channel construction capabilities and service capabilities will have a greater advantage in market competition. Through the establishment of diversified sales channels, Covering a wider range of markets and consumers, providing more professional and caring services. It is expected that the channel diversification of the kitchen appliance industry will be further deepened in the future, and the dominant enterprises in the industry will expand their sales network through the combination of online and offline, the combination of self-management and agency, and the combination of monopoly and integration.

Champ Consulting believes

Based on the above analysis, we believe that:

The kitchen appliance industry is an industry with great development potential and market space. Benefiting from the improvement of my country's economic and social development level and residents' living standards, as well as the technological innovation and rich categories of kitchen appliance products, the kitchen appliance market scale will continue to grow;

The kitchen appliance industry is a highly competitive and rapidly changing industry. In order to gain a dominant position in the market competition, it needs to have a strong brand advantage, technical advantage and channel advantage, and continue to innovate and improve;

The kitchen appliance industry is an industry that develops in the direction of high-end, energy saving, environmental protection, and intelligence. In order to meet the diversified and personalized needs of consumers, it is necessary to continuously introduce products with advanced technology and functions, energy saving, environmental protection and intelligence. Improve the added value of products and user experience.