Recovery after the epidemic+consumption upgrading, the sinking market ushered in the turning point year
The three-year anti-epidemic campaign has finally come to an end, but the scar effect brought by the epidemic has made the home appliance market in China in 2022 difficult. According to the total data of AVC, from January to November, 2022, the retail sales of China's home appliance market totaled 654.3 billion yuan, down 7.2 percentage points year-on-year. In terms of categories, traditional household appliances are facing greater challenges, and emerging household appliances representing healthy, lazy and integrated needs are still in the growth channel.
The report also pointed out that China's sinking market has great potential, which is mainly reflected in the fact that the sinking market has a huge population base, a relatively stable purchasing power base, and the income level of residents has steadily increased, and it is rare that the sinking market is in the channel of favorable policies. China's county division includes counties, towns, and rural areas. Counties connect cities and rural areas, which is a key market for double circulation and expanding consumption in the sinking market. It is also the key layout and harvesting market of home appliance stores in the sinking market represented by Tmall Premium. The economic development and consumption power of some top 100 counties are even as good as that of urban markets. At present, there is still room for improvement in the household appliance retention rate in our rural market. The difficulty in expanding household appliance consumption lies in sinking the market, and of course the stamina is also sinking the market.
With the continuous improvement of Internet penetration, the number of Internet users in third-tier cities and cities in China has exceeded 55%. The popularity of the Internet has flattened the barriers to information transmission, and China's sinking market is no longer a blind spot for information. Under such a development background, users in the sinking market attach great importance to brands and are more inclined to buy comprehensive well-known brands and professional well-known brands. At the same time, their demand for home appliances and services are upgrading synchronously, converging to the urban market. In other words, who can grasp the product and service upgrade of this wave of sinking users, who will become the real winner in the future.
Looking to the future, winter goes to spring, and recovery can be expected. As the first year of the epidemic unsealing, it is expected that the market will usher in certain growth in 2023. For the sinking market, we should focus on the popularization of household appliances and the release of update demand. At the same time, the demand voice of small household appliances in the sinking market is from weak to strong, and the layout should be judged. The demand for consumption upgrading of county users is very clear for high-end, intelligent and nested household appliances. We should do a good job in building and upgrading large stores and improve our ability to sell high-end and nested household appliances. Improve the high-end structure & increase the unit price of customers to seize the opportunity of consumption upgrading in the county market.