China is the largest appliance manufacturer and consumer.  Released by China Household Electrical Appliance Institute (CHEAI), “Third Quarter Report on China Electrical Appliance Industry” (Q3 Report) showed that the overall market of China electrical appliance was decreased 5.6% to182.1 billion yuan in Q3, when compared with the same period of previous year, with 8.7% falling down by air conditioners.

Vice president of CHEAI, Mr. Ge Fengliang said, the trend of consumption upgrade is not changing, the demand is expanding, new and personalized demand is forming, although the overall market is not optimistic as desired.  Meanwhile, the future market will be more competitive and bring enterprises new requirements and challenges.

Domestic demand shrinking and frequent products promotion are the factors leading to decrease

From the aspects of economic index, structure index, quality index and benefit index, China economy keeps a stable and uptick trend, with the backdrop of international serious economic environment.  But impacting by shrink of real estate, climate and flat demand, the household appliance market is under pressure.

There were many promotion activities in the first half of year which extracting the demand in Q3, and the prices of certain appliances decreased sharply by frequent promotion led to the slash of consumers demand in Q3.

Serious competiveness will make a high concentration of brands.

High quality life driving products replacement is a new development engine

Despite of weak market in Q3, the products with the concepts of intelligent, healthy and high level kept stable increase.  Products replacement and upgrade has become a new engine of household appliance industry.

Q3 Report clarified that the shipment of intelligent appliances was increasing with amazing growth rate of air conditioner.  In Q3, the retail value of intelligent air conditioner accounted for over half of the total.  For consumers, the smart appliance is the symbol of high quality life.