Home appliance industry
The home appliance industry is one of the few industries in China with international competitiveness and is also the representative of China's manufacturing industry. Since the new century, China's home appliance industry has grown into many outstanding enterprises. Gree, Midea and Haier have a worldwide reputation and their products are sold all over the world. At the same time, we have also cultivated a large number of competitive local brands. Boss, Fangtai and Little Swan are well-known in China. Emerging brands such as Xiaomi are struggling to catch up with the “latecomers”. The household appliance industry is not only the biggest beneficiary of China's “urbanization speed increase” in the past two decades, but also the largest carrier of “consumption upgrade” of Chinese residents. It may become a global industrial integrator in the future.
Stable growth in performance and high return on investment are a major feature of the home appliance industry. In the past ten years, the A-share household appliances index has risen by 250%, ranking first among the 28 first-tier industries. Therefore, the home appliance industry has always been favored by institutional investors. The latest data shows that overseas funds with global asset allocation advantages, in addition, statistics of long-term performance of outstanding public fund products also found that many companies in the home appliance industry appeared in their heavyweights. The steady growth of the home appliance industry has brought higher returns to investors.
The industrial space is large enough and the development space is another feature of the home appliance industry. According to the statistics of the Ministry of Industry and Information Technology, in 2017, the output value of the home appliance industry exceeded 1.5 trillion yuan, and the total profit reached more than 110 billion yuan. The compound growth rate of output value in the past 18 years exceeded 15%, far exceeding the growth rate of GDP. The huge industrial space has absorbed many participants, and various brands have emerged in an endless stream, which has enabled product technology to make great progress. However, compared with developed countries, there are still large gaps in the number of households and household appliances in China.
The perfect industrial chain and strong profitability are another major feature of China's home appliance industry. Looking into the future, China's urbanization is still continuing, and per capita consumption expenditure continues to rise. Under the background of consumption upgrading, China's home appliance industry has a broad development space.
China is the world's largest consumer electronics market with many manufacturing companies and a complete industrial chain. At the same time, China has a competitive engineer dividend and a relatively advanced production line. Therefore, Chinese household electrical appliance enterprises have strong international competitiveness in terms of profitability and product cost performance. These conditions have prompted Chinese home appliance companies to have a certain international ability after they have stabilized the domestic market.
Overall, China's home appliance listed companies have performed well in terms of profitability and return on investment over the past decade. China's home appliance industry has also made great progress. The products are dominated by foreign brands with old-fashioned and expensive prices, and they are dominated by self-owned brands with novel styles and affordable prices. Consumers have gained benefits. Looking forward to the future, in the context of the industry dividends gradually subsiding, the development of China's home appliance industry should be based on refinement, pay more attention to consumer demand, rationally use new channels, produce products that consumers are satisfied with, and enhance international competitiveness.