The Kitchen Appliances Market in China (Smart Guide)

China’s Kitchen Appliance Market is experiencing significant growth and is considered one of the largest and most competitive markets globally. With a rising middle class and increasing disposable income, Chinese consumers are looking for modern and efficient kitchen appliances to enhance their cooking experience.

Major international brands, as well as local manufacturers, are competing in this market, providing consumers with various options to choose from. Additionally, e-commerce platforms have played a crucial role in the growth of the Kitchen Appliance Market in China, making it easier for consumers to compare products and make purchases online. China is the major kitchen appliances market in the world.

China Home Appliances Market

The Chinese home appliances market has experienced rapid growth in recent years. With a population of over 1.4 billion people, China represents a massive consumer base for home appliances. The rising disposable income and improving living standards have contributed to the increased demand for various household appliances.

Chinese consumers have a wide range of options when it comes to choosing home appliances, from refrigerators and washing machines to air conditioners and televisions. Innovation and technological advancements play a crucial role in attracting consumers, as they seek products that are energy-efficient, durable, and offer smart features.

The Kitchen Appliances Market in China

The kitchen appliances market in China has experienced lucrative growth in recent years. With the rapid urbanization and rising disposable incomes, more and more Chinese consumers are investing in modern and efficient kitchen appliances. From refrigerators and ovens to dishwashers and coffee makers, the demand for these products has been steadily increasing.

The market is highly competitive, with both domestic and international brands vying for a share of the pie. Chinese consumers are increasingly seeking appliances that not only offer functionality but also reflect their lifestyle and taste.

For instance, in March 2017, the China Household Electrical Appliances Association released its standard Cloud to Cloud Interconnection for Smart Household Appliances. Being the first in the industry, this standard paved the way for the further development of smart appliances. In July 2018, Xiaomi launched a new product to its Mijia product line. Mijia Smart Air Conditioner, which won the 2017 Good Design gold award.

As a result, manufacturers are focusing on innovative designs, energy efficiency, and smart features to cater to the evolving needs of the Chinese market. With the government’s emphasis on sustainable development and the growing awareness of environmental issues, there is also a rising demand for eco-friendly kitchen appliances.

Overall, the kitchen appliances market in China presents a promising opportunity for manufacturers and retailers alike, as the demand for modern, efficient, and stylish appliances continues to rise.

Chinese people want more designed homes

As consumers’ brand awareness continues to heighten, more emphasis is being placed on product design, functions, and features, while price sensitivity is falling. Medium to high-end products is becoming the mainstay of the consumer market, while the demand for eco-friendly and energy-efficient kitchen appliances is also growing as consumer environmental awareness increases.

The imported kitchen market is growing

More and more people spend their money on enjoyment-centric consumption or improvement-centric consumption. The imported kitchen market is expected to generate around US$27.22 billion (RMB189.75 billion) in revenue in 2022, and the market is anticipated to further grow by a CAGR of 5.14% from 2022 to 2027.

The furniture industry, and so the kitchen too, have a highly separated structure. According to the survey, industry giant such as IKEA has only 3% market share globally. In China, the major part of the market share belongs to the Chinese native brand.

So in face of the Chinese market where the market margin is still very high for high-end imported furniture, how should a foreign furniture brand take its first step to the Chinese market?

The success of microwaves and small home appliances in China

In 2020, the microwave market soared in the Middle Kingdom. Because of the Covid-19 pandemic, there was a switch in consumer behavior. The Chinese spend more time at home and turn more easily to the kitchen and home purchases.

According to the e-commerce platform JD.com statistics, young consumers mostly spent on their kitchen during the 618 Shopping Festival, in June 2020. The sales of large home appliances increased by 17% and even reached 28% for small home appliances in 2020.

Chinese netizens often spend a lot of time on social media and live streaming to find new kitchen and home appliances to purchase. For instance, on Kuaishou, the Chinese are more willing to spend more on products related to their home. Kuaishou is a video-sharing app in China with 262 million daily active users (DAU). On average, Chinese users spend 80K RMB for home decoration and 9K RMB for electronic appliances. In 2023, the microwave market in China should reach a total revenue of US$1.59 billion.

Learn from the international giant IKEA

IKEA is known globally for its low prices and innovatively designed furniture. In China, however, it faced peculiar problems. Its low-price strategy created confusion among aspirational Chinese consumers while local competitors copied its designs.

IKEA identified the strategic challenges and made attempts to overcome them. One of the main problems for IKEA was that its prices. Considered low in Europe and North America, they were higher than the average in China. Since 2000, IKEA has cut its prices by more than 60 percent.

IKEA also had to tweak its marketing strategy. In most markets, the company uses its product catalog as a major marketing tool. In China, however, the catalog provided opportunities for competitors to imitate the company’s products. Instead, the company is using Chinese social media and micro-blogging website Weibo to target the urban youth.

A good marketing plan is a key to success

Therefore business in China involves a lot of hard work and awareness of consumer behavior. If you find yourself weak in understanding consumer expectations, professional marketers can be of great use. In the field of the kitchen furniture business too, the owner has to have a complete arsenal at the disposal to score big market share. Here is what a kitchen furniture business owner in China needs to have for meeting the promotion objectives.

Being consumer-oriented

French furniture brand Ligne Roset has reduced 25% and 15% of its price in the Chinese market. Norwegian brand Stressless has already set its price in China’s home appliances market the same as it in Europe. Some imported brands have even set their price in the Chinese market lower than those in the Japanese and Singapore markets to attract Chinese consumers.

Indeed, Chinese consumers, with their increasing horizons, are more and more reasonable. Imported goods are no longer something untouchable. Consumers pay more and more attention to the design and quality instead of the price tag. It is true that in the first period, imported furniture was still something new and was being worshiped like an idol in the shrine.

Consumers with limited knowledge only pursue high price and a distorted imported-furniture market was born under this consuming behavior. The purchase raised the price and the raised price impel continuously the consumer.

But this has changed dramatically these years. With the development of the native brand and more reconnaissance of quality, Chinese consumer needs no more to “worship” imported brand blindly. So Italian brands need to consider their consumer first and set the strategy of their pricing more carefully.

Online Market

Internet usage is exceptionally common in China. The owner of any business in China, including the furniture specialist, should have an online venture to reach a humongous chunk of the audience. To gain more visibility online, thus, one should have an SEO specialist hired.

Also, the business owner can take the audience on an online tour to the manufacturing unit to gain more trust and credibility. It will give you better chances of scoring more sales ultimately.

An effective way to boost online presence is through social media platforms. Platforms like WeChat, Weibo, and Douyin (also known as TikTok) are highly popular in China and provide opportunities for businesses to connect with their target audience. Brands can use these platforms to share product updates, offer promotions, and engage with customers through interactive content.

Furthermore, partnering with influencers or Key Opinion Leaders (KOLs) can significantly enhance the online presence of smart home appliances. KOLs have a strong influence on Chinese consumers and can help promote products through their social media channels, blogs, or live streaming platforms.

For instance, Xiaomi has a strong presence in Chinese social media when it comes to smart home appliances. One example of this is their official Weibo account, which has millions of followers and regularly shares updates, promotions, and user experiences related to their smart home products. They also actively engage with their followers by responding to comments and questions, creating a sense of community around their brand.

Responsive website

The online presence of furniture starts with building a web property like a website or mobile application. Therefore, any web application or website developed should be responsive in nature.

This way it becomes easy to tap the large consumer base active on mobile phones and tablets.

Take a shot at Chinese E-commerce

In the last 10 years, China has made its way to have the most developed e-commerce industry in the world. Main e-commerce platform such as Tmall and JD.com is no doubt an efficient and economical portal for a foreign furniture brand to expand its brand influence. You can improve your brand awareness, accumulate a customer base hence develop your business in the Chinese market.

According to a sales report from Alibaba, only in “11.11” one day, the most influential shopping festival in China, the sales from the top 5 furniture brands account for 10% of the total sales of all brands that participated in the event. With these general e-commerce platforms such as Tmall and JD.com, one can definitely approach the Chinese market with a limited risk now. Not only limited to big shopping platform, foreign brands who want to have a share in the Chinese market.

So, they can also cooperate with specialized online furniture selling platforms such as ITALYCLASSICO. This platform has a good reputation with real estate developers. Cooperation with real estate developers means a chance to be the furniture supplier for luxury real estate projects. Most developers also believe that using imported furniture is more attractive to consumers.

For example, in the Household Appliances market, 62.2% of total revenue will be generated through online sales by 2023. In the Household Appliances market, volume is expected to amount to 1.02 billion pieces by 2028. The Household Appliances market is expected to show a volume growth of 0.4% in 2024.

A social media account makes different

Approaching the Chinese market using these platforms can be a “hard bone”. For international brands, the communication barrier, and the ever-changing commercial policies in China. It is hard for a foreign brand also in that the digital marketing tools are totally different from those in the Western world.

The disappearance of Google, Facebook, and Instagram can make brand communication an impossible mission. A “new” company that has definitely no idea what’s going on in China. So finding a good business partner that knows the digital approach to Chinese can be fundamental for the business strategy you may choose.

To fathom the online world further, the furniture business enterprise in China should be active on social media networks too. Posting the latest product information creatively, launching promotional events, and giving information about them on social media accounts are some of the ways furniture businesses can try to reach consumers.

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The Kitchen Appliance Market in China has witnessed significant growth in recent years. With the rapid urbanization and rising disposable income of the Chinese population, there has been an increased demand for kitchen appliances.

The market is highly competitive, with both domestic and international brands vying for market share. Chinese consumers have become more aware of the latest technological advancements and are willing to invest in high-quality, efficient, and innovative kitchen appliances.

The main factors driving the growth of the market include the increasing number of households, changing consumer lifestyles, and the growing trend of kitchen renovations and upgrades.

 The Kitchen Appliance Market in China is a dynamic and rapidly evolving industry. With the right strategies and product offerings, companies can tap into the immense potential of this market and cater to the evolving needs and preferences of Chinese consumers.

We are a China-based marketing agency offering cost-effective solutions to foreign brands interested in tapping into the Chinese eCommerce market. Our team of Chinese and foreign experts has the experience and know-how needed to succeed in this lucrative, yet complicated market.

Gentlemen Marketing Agency offers many digital marketing and e-commerce solutions, such as web design, e-commerce and social media marketing strategies, localization, market research, KOL marketing, and more.

Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.