Expansion of home appliance stores into China's rural areas will drive future growth.
San Francisco, CA (PRWEB) December 22, 2012
In the five years to 2012, revenue for the Home Appliance Store industry in China has been increasing at an annualized rate of 10.1% to $140.9 billion. Rising incomes, the expansion of chain enterprises, greater retail power over suppliers, wider product ranges, and government assistance have all supported the growth of the industry.
Profit levels vary significantly among different product segments – kitchen and bathroom appliances are the most profitable, electronics the least. However, increased industry competition in recent years has resulted in overall profit declines as companies reduced prices to increase market share. The four largest companies operating in this industry, including GOME and Suning, account for just under a quarter of total revenue, which indicates a low market share concentration level. In many large cities, such as Beijing and Shanghai, the industry concentration level is much higher, with major companies forming oligopolies.
Home Appliance Stores in China are struggling though a demand slump in 2012 due to the expiration of the government's 2009 stimulus package. Moreover, employment and logistics costs are on the rise. Future revenue growth will be slow, says IBISWorld, driven by the expansion of the industry into China's less developed rural areas.
For more information, visit IBISWorld’s Home Appliance Stores in China industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Home Appliance Store industry in China retails household electric appliances, such as refrigerators, washing machines, color televisions and small electrical appliances. These goods are purchased from domestic and international manufacturers and wholesalers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.