Analysis of the market status and development prospects of the small home appliance industry in 2021, some categories broke out during the epidemic

Small household appliances generally refer to household appliances other than those with high power output. Generally, these small household appliances occupy relatively small power resources, or the body size is relatively small, so they are called small household appliances. Mainly include food cooking appliances, cooking appliances, household environment appliances, personal care appliances, etc.

Summary and Review of 2020

1. Overall market conditions
According to the National Bureau of Statistics, as of November 2020, the main business income of China's home appliance industry was 785.26 billion yuan. Although the operating situation of the industry in the first half of the year is still severe, the situation has gradually improved in a single month since April. In the first three quarters, the cumulative decline in revenue from main operations further narrowed by 2.87 percentage points from the previous month, and the cumulative decline in profit decreased by 7.5 percentage points from the previous month.

2. Production of small household appliances
From the perspective of production, the entire supply chain system is currently complete, market demand continues to pick up, and enterprise production is steadily recovering. Benefiting from the market recovery, home appliance companies have adjusted their production scheduling plans based on their original production scheduling plans.

3. Sales of small appliances
From the perspective of the proportion of product sales, the sales of small kitchen appliances accounted for 76%, small household appliances accounted for 13%, and personal care accounted for 11%. Whether in the world or in the country, the proportion of small kitchen appliances is the largest, followed by small household appliances, and the proportion of small personal care appliances is the least.
The epidemic has created strong demand for small household appliances. Small cooking appliances such as air fryer and grilling machines, cleaning appliances such as vacuum cleaners, electric mops, etc., and personal care appliances such as hairdressers, personal massage equipment, etc., have been boosted by the "home economy". In particular, the integrated micro-steaming and baking products maintained a relatively high growth rate, with retail sales reaching 2.7 billion yuan in the first three quarters, a year-on-year increase of 53.4%. At the same time, as the real estate market continues to pick up, dishwashers have also achieved growth against the trend. In the first three quarters, cumulative sales of 1.27 million units and sales of 5.7 billion yuan, an increase of 32.9% year-on-year.

4. Export situation
With the effective control of the new crown epidemic by various countries, global economic activities have gradually resumed, and the "home economy" has been activated during the epidemic, promoting the hot sales of home appliances. The export enterprises of China's small home appliances have started the "explosive orders" model. According to customs data, China's exports of small home appliances have increased by more than 600% this year, and microwave ovens have set a record in export value; in the first half of the year, my country's exports of electric frying pans, bread machines, juicers, etc. Increases were 62.9%, 34.7%, 12.1% respectively.
From 2015 to 2019, the export volume of microwave ovens in China's small home appliance industry increased from 53.71 million to 59.8 million. As of November 2020, the total number of exports of microwave ovens was 60.82 million, a growth rate of 10.8% compared to 2019.

Industry forecast for 2021

1. Market size
Benefiting from consumption upgrades, the future growth space of the small home appliance market is much larger than that of large appliances. Clean appliances and high-end kitchen appliances will become the future consumption hotspots. Cleaning appliances including vacuum cleaners, steam mops, mite removal devices, and sweeping robots will be the next "tuyere". According to data, the scale of China's small home appliance market will reach 402 billion yuan in 2019. The China Business Industry Research Institute predicts that China's small home appliance market will reach 486.8 billion yuan in 2021.

2. Future development trend
(1) Continuous increase in market penetration
In most key small appliance categories, China’s penetration rate is lower than that of developed countries, indicating that China has huge growth potential. In terms of vacuum cleaners, China has only 12 vacuum cleaners per 100 households, the United States and the United Kingdom have more than 100 vacuum cleaners per 100 households, and Japan and South Korea have more than 90 vacuum cleaners per 100 households.
As consumers in the market become younger and products become more convenient, it is expected that the penetration rate of small home appliances will continue to increase in 2021.
2) The double guarantee of quality and fashion will become the development trend of small household appliances
As consumer demand for small home appliances continues to increase and change, small home appliances are further subdivided, and the product structure has a clear trend of upgrading. The market share of high-end, smart and healthy small home appliances has increased, becoming the main driving force for market growth. . In addition, the younger generation that has grown up with the Internet has gradually become the main consumer in the small home appliance market. This type of consumer group is more fashionable and more inclined to healthy types of products, making fashion and health a new trend in the development of small home appliances. At the same time, the continuous advancement and marketing of the e-commerce industry has promoted the continuous increase in sales of online channels. It is expected that in 2021, major e-commerce platforms will continue to launch relevant preferential activities to drive the expansion of the small home appliance market.
(3) Products will be more humane and intelligent
With the development of science and technology and the universalization of AI intelligence, more and more devices have this technology in our daily lives, and it also brings convenience to our lives. In the future, the direction of R&D and production of small household appliances will gradually develop from single pragmatism to personalized and customizable development, making them a household item with consumer personality, rather than simple household appliances. With the development of Internet technology, small household appliances will be more embedded with Internet-enabled modules to realize WIFI networking control and other functions.
(4) Diversification of small household appliances
The improvement of residents' spending power and the change of consumer groups have promoted the upgrade of small household appliances consumption, and people's demand for new small household appliances has also grown day by day. On the one hand, people have a demand for replacement of existing small household appliances, and their willingness to buy is gradually inclined to high prices and high quality. On the other hand, small home appliances with innovative functions are emerging in an endless stream, such as electric stew cups, electric egg beaters, electric lunch boxes, toasters, yogurt machines and humidifiers. Affected by the epidemic, consumers are increasingly accepting and compulsively adapting to the "home culture". It is expected that in 2021, such multifunctional small appliances will satisfy people's pursuit of quality of life and become a new competitive field for small appliance companies.