In the dynamic landscape of consumer electronics, one question looms large: Is your home ready for the future? As technology advances at an unprecedented pace, the China Smart Appliances Market is on the verge of a revolutionary explosion.
The days of traditional appliances are numbered, and a new era of convenience and efficiency is dawning. From intelligent refrigerators that order groceries to washing machines that know your laundry preferences, the possibilities are limitless.
Are you prepared to step into this smart, connected world and redefine how you interact with your home? Join us on a journey through the fascinating realm of China’s smart appliance market, where the future of your home is smarter, more efficient, and undeniably captivating.
Prospects for Growth of the Smart Appliances Market in China
In 2022, the Smart Appliances segmented a substantial US$13.85 billion in revenue. This impressive figure is expected to grow steadily at an annual rate of 13.86% from 2022 to 2027, projecting a market volume of US$27.93 billion by the latter year.
By 2027, we anticipate a significant rise in active households within the Smart Appliances segment, reaching approximately 163.3 million users. This trend reflects a considerable increase in household penetration, which is predicted to rise from 8.5% in 2022 to an impressive 33.6% by 2027.
As of now, the average revenue per installed Smart Home stands at around US$345.00. When making a global comparison, it becomes evident that the majority of this revenue is being generated in China, with an astounding US$13,850.00 million recorded in 2022. These numbers reflect not only the current state but also the promising future of the smart appliance market.
Smart Cities in China
China is reinventing its urban development taking “smart cities” as a reference. The paradigm is Xiong’an, a hyper-digitalized and sustainable city.
After the coronavirus crisis, China launched the economy with a gigantic development plan for smart cities, the connected cities of the future. It will be a huge bet.
According to Xu Xianping, former vice president of the National Commission for Development and Reforms, China’s main economic planning body, national investments in new infrastructure are expected to reach 17,500 billion yuan (about 2,200 billion euros) in the period 2020-2025, with a growth rate of around 21.6% per year.
Hu Qimu, a researcher at the China Digital Economy Institute, said that, compared to traditional ones, the new infrastructures will attract investments from more market entities, such as internet companies.
The plan for the development of “new infrastructures” that transform the current overcrowded and polluted Chinese metropolises into hi-tech, green, and more people-friendly paradises, in fact, provides for the use of a wide range of technologies: from the use of self-driving electric vehicles with recognition and warning systems, up to sustainable structures powered by green energy sources. All are connected thanks to 5G and ultra-fast fiber networks that enable new services.
E-commerce Sales of Smart Appliances are Increasing in China
China’s burgeoning e-commerce landscape is experiencing a significant uptick in the sales of smart appliances, driven by consumer demand for convenience and efficiency. As consumers increasingly seek to upgrade their homes with intelligent solutions, several popular items have emerged as the darlings of the e-commerce market.
Robot vacuum cleaners and smart mops have found favor with Chinese consumers, providing automated cleaning solutions that save time and effort.
In the kitchen, smart appliances like intelligent ovens, coffee makers, and rice cookers are becoming increasingly popular. These appliances offer precise cooking controls, recipe suggestions, and remote monitoring through smartphone apps.
With the rise of streaming services, smart televisions have become a staple in Chinese households. These TVs offer access to a wide range of content, all while integrating with other smart appliances for a cohesive home entertainment experience.
When it comes to platforms driving these e-commerce sales, Alibaba’s Tmall and JD.com are leading the charge. These giants of the Chinese e-commerce industry offer a wide array of smart appliances, often with competitive pricing and reliable delivery options. Additionally, Suning, a prominent electronics retailer, and Pinduoduo, known for its group-buying deals, have also made significant strides in capturing the smart appliance market.
Do you want to sell smart appliances in China? Here is what you have to do:
Build a Good E-Reputation for Your Smart Appliances’ Brand
In China more than everywhere else the reputation of a brand is what will make the difference. Chinese consumers do not easily trust the new brand and don’t really like to take risks and buy a new product without knowing and being informed about it.
For an unknown brand with no E-reputation, the cost of getting visitors can be really high. That’s why E-reputation should be the base of your marketing strategy, especially when doing e-commerce in China, whatever platform you choose.
In China, E-reputation is key to success. PR is a good way to build your credibility. Not only you are getting experts talking about you, but it also means backlinks from authority websites.
It is a basic of marketing where the right people talk about you and it’s also cost-efficient.
Use Zhihu & Forums to Educate Chinese Netizens on Smart Appliances
Zhihu is an amazing channel for Chinese people who want to find recommendations for products from other people and, at the same time is important for brands to explain product benefits.
Zhihu is a Chinese question-and-answer site like Quora. On Zhihu, questions are created, answered, and organized by its users. In Classical Chinese, “Zhihu” means “Do you know.” 20 % of users work in the tech sector.
The platform has an array of features that can be used to create and manage a community around a topic related to your brand. It is really useful for B2B.
Leveraging KOLs to Drive Smart Appliance Sales
Key Opinion Leaders are always a great way to influence Chinese consumers to buy your products as they are seen as more loyal than the company’s advertising campaigns. They are also important in the smart appliance sector as they offer consumers an example of a wealthy lifestyle.
However, if a company wants to collaborate with KOLs, it must be very careful in its choice as not all KOLs are reliable and produce results for companies.
Is the right KOL for my brand? Is it in line with my core business and are its followers my target market? His followers are true or not? These are all questions that are difficult to answer. This is why GMA is here to help you choose the right KOL for your brand image.
Sell Your Smart Appliances on Tmall
Tmall is the leading B2C e-commerce site in China. It has 877 million monthly active users. It is a generalist platform that focuses on the sale of branded products. You can find products of all kinds, from beauty to mechanics.
The brands are presented on Tmall in the form of graphically customizable flagship stores.
Tmall has a simplified payment process, where buyers don’t necessarily have to use a credit card. In fact, it is possible to finalize your purchase through the Alipay electronic payment system. Only original and verified brands are accepted.
Sellers have an excellent analytical tool and periodic reports on sales trends. Tmall often launches real shopping festivals to attract new consumers and stimulate sales. The most famous is Singles’ Day, which falls on 11 November and records some of the highest sales peaks of the year.
Jd.com Can be a Good Alternative to Tmall
Jd.com has 570 million active users. The most active age groups on the platform are those of the Millennials and Generation X, therefore young people under 40.
It is a generalist platform that focuses on the sale of products of all kinds, from fresh food to beauty, including electronic products. It stores sells and distributes directly to the final consumer thanks to its national shipping network.
It is the site with the most accurate logistics system, with guaranteed deliveries in 1-2 days throughout the country. 85% of orders are delivered on the same day.
It is a guarantee of quality and it is linked to WeChat.
Suning.com
Suning Global is Suning’s leading platform dedicated to cross-border e-commerce. Launched in 2014, it currently features around 300 foreign shopfronts, and Suning, like Alibaba, offers its own integrated logistics service (4 aviation hubs, 12 automated pickup centers, and 660 urban distribution centers), as well as financial support services.
Among the main categories of best-selling products on the platform, we find household appliances and products for maternity and childhood. Suning Global is particularly used by users for its multiplicity of payment options.
You can use their online payment escrow service or Yi-Pay to complete transactions in either RMB or foreign currency.
Navigate the Chinese Smart Appliances Market with GMA
Stepping into the Chinese smart appliances market presents a mix of opportunities and challenges. GMA offers over two decades of expertise to guide you.
Our extensive experience provides deep insights into China’s smart appliances landscape, from understanding trends to adapting to evolving consumer preferences. Navigating the intricate web of regulations, laws, and logistics can be complex. We simplify market entry, ensuring a smooth process by handling compliance requirements and distribution channels.
In a fiercely competitive market, building a robust brand presence is essential. We help tailor your brand strategy for Chinese consumers, emphasizing value and trust. Data is our cornerstone. GMA conducts thorough market research to inform your decisions, from demographics to emerging trends.
Efficient distribution is crucial. Leveraging our network, we connect you with the right partners and retailers to ensure broad product availability. In a diverse market like China, local partnerships are invaluable. GMA assists in identifying and collaborating with key local players to expand your reach.
Our commitment extends beyond entry; we support your growth and provide ongoing market insights to help you adapt to changing consumer preferences. In essence, GMA is your experienced partner for navigating the Chinese smart appliances market, unlocking its immense potential for your brand.
