As old home appliances hit expiration dates, replacement demand will drive growth
San Francisco, CA (PRWEB) May 01, 2013
In 2013, revenue for the Household Electrical Appliance Manufacturing industry in China is expected to total $30.7 billion, says IBISWorld. The industry has been growing steadily in the past five years, with revenue increasing at an annualized rate of 8.4%.
With the market becoming more competitive, innovation has becoming an increasingly important basis of competition. Therefore, investment in R&D has increased greatly in recent years, especially in the microwave oven and electric cooker product segments, says IBISWorld.
The top four companies in the Household Electrical Appliance Manufacturing industry in China, Vanward, Vatti, Robam, and Macro, account for an estimated 5.2% of industry revenue in 2013. The variety of product types is largely responsible for the low market share concentration. Low barriers to entry and a large number of enterprises also contribute.
Most of the products in the domestic market are manufactured by local producers such as Robam, Vanward, Vatti, Macro, and Midea. Foreign enterprises operating in the Chinese household appliance market include Siemens and Panasonic. Attracted to the industry's high development potential, new enterprises and subsidiaries of foreign enterprises are setting up factories in Guangdong, Zhejiang and Fujian, says IBISWorld.
Over the next five years, a large number of household electrical appliances will hit their expiration dates, which will raise replacement demand for the industry's products. In addition, the launch of new preferential policies by the government will stimulate more household purchases, says IBISWorld.
For more information, visit IBISWorld’s Household Electrical Appliance Manufacturing 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 Household Electrical Appliance Manufacturing industry in China includes companies that manufacture household electrical appliances such as cookers, water heaters, steamers, fryers, range hoods, food processors, and cleaning appliances. Industrial stoves and other industrial household appliances are not included in this industry.
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.