China Home Appliances Blue Book

Chinese Home Appliances Bluebook

Becky Han, an Associate Director in the China Research Initiative team, discusses the growth prospect, industry leverage changes and pandemic impact on Chinese home appliances industry.

Market Size and Growth Drivers

Home appliances are one of the most competitive industries in China with a market size of CNY914 billion (USD131 billion) by revenue in 2019. The industry had been riding on China’s urbanization and expanded at a CAGR of 3.7% during 2014-2019. While the growth in traditional home appliances such as TVs and refrigerators is approaching saturation, kitchen and lifestyle appliances, despite their small market sizes, have experienced faster growth due to lower household ownership.

Rising External Funding Needs

Key industry players’ strategy to seek additional growth through merger and acquisitions (M&As) will increase their external funding needs and leverage in this historically cash-rich industry. White Goods Companies’ Leverage is likely to Trend Up on M&A.

China Home Appliances Sector

Please join us as we discuss the key themes in the recently published China Home Appliance Blue Book:

· What are the main growth drivers of the sector going forward? · How is the sub-sector’s competitive landscape different from each other? · How are the industry players tackling the channel shift to e-tailing? · Will M&A activities continue to go up over the next few years? · What is the impact of coronavirus outbreak on the sector?