The kitchen and electric industry has turned sharply and the price war is not playing.

For more than a decade, the situation of China's kitchen electric appliance market has never been as severe as it is today. In the first half of the year, it suddenly turned sharply. Most of the categories such as smoking machines, gas stoves and water heaters experienced different degrees of decline. The growth was weak and competition intensified. The market is not a small panic, the biggest concern is the price war.

In view of the competition situation of kitchen appliances in the second half of the year, some people believe that the competition between Fang Tai, Boss, Vantage and other professional brands is dominated by the competition of Midea, Haier, and other comprehensive brands. If they do not move, the price war will be difficult to scale; others believe that real estate regulation Overweight, kitchen power demand narrowed, inventory climbed, small and medium-sized manufacturers' price wars counterattack, and the industry's volume and price fell for a while.

Before the market, such as color TVs, refrigerators, etc., the market was reversed, followed by real estate regulation and control, channel reforms, and where is the competition in the kitchen power market? Will price wars become the ultimate destination of kitchen competition? Who can become the dominant market situation? For a moment, there is a lot of argument!

The market has turned sharply, and the price war has increased sharply.

In the third-party organization, Yikang data shows that the market size of the kitchen electricity market (smoke stove, micro steaming, and washing embedded machine) in the first five months of 2018 reached 36.9 billion, an increase of -4.2%. The data of Ovi Cloud also shows that the retail sales of the kitchen mains market in the first quarter of 2018 was 12.8 billion yuan, down 6.1% year-on-year.

Based on the decline in the first half of the year, the agency lowered its fuel consumption target for this year from 150 billion yuan to 110 billion yuan. That is to say, the scale of kitchen electricity revenue has exceeded 100 billion yuan this year, but it has to grow at a high speed. It is unlikely in the past two years.

For the first time in more than 10 years, this is the first negative growth in the Chinese kitchen appliance market. However, from the outside world, it is no accident that the kitchen appliance industry has turned sharply downward this year.

As a real estate-related industry, in the country's macro-intensive regulation, restrictions on purchases and loans, the traditional kitchen appliances are difficult to continue to take the real estate economy of the car, hoods, gas stoves, water heaters, etc. are in a situation of weak growth, demand slowdown, inventory Climbing and increasing competition have become fixed.

In the past ten years of rapid development, the traditional kitchen electric industry is facing severe product homogenization competition, and it is in a saturated situation. The popularity of kitchen appliances is shifting from the first and second line markets to the second and third lines, and even to the central counties and towns, embedded and intelligent. It takes time to promote the application of new kitchen appliances such as a healthy sink dishwasher and a steaming machine.

If the demand is narrowed again and the transformation and upgrading are difficult to break through, the market will not only be more fierce, but also the low-end fight will be even more cruel.

Some insiders pointed out that the price war has never been so close to the kitchen electricity industry as today. It is the traditional mainstream products such as range hoods, gas stoves and water heaters. These products are also the main force in the growth of kitchen appliances.

From the specific data, in May, the retail sales of gas, electricity, water and electric water heaters fell by more than 6% year-on-year; the retail sales of Chinese, European and near-suction range hoods fell by 23% and 14% respectively. 7%; retail sales of desktop and embedded gas stoves decreased by 25% and 10% respectively.

In addition to products, kitchen cakes not only cause Fang Tai, Boss, Vantage and other professional companies to grab food, but also the United States, Haier and other comprehensive brands plus, but also attracted Hisense, Changhong, TCL, Supor, Jiuyang, and Yunmi, Skyworth After the cross-border intrusion of home appliance companies, the number of brands in the kitchen appliance industry has exceeded 500. The kitchen appliance market is no longer a blue ocean. Later, the intruders are best at using price wars.

It seems that the risk of price wars in the kitchen appliance industry has been high, and second- and third-line brands lacking core competitiveness are most likely to be the initiators of the bottom line. Of course, if the kitchen appliance head brand is not involved in the price war, or through the product structure adjustment to optimize the market price competition system, then the price war of small and medium-sized brands is undoubtedly just "let go", it is difficult to quickly and effectively.

Head brand dominates, price war is difficult to fully burn?

In the second half of 2018, the uncertainty of the entire home appliance market is getting bigger and bigger. This is the consensus of the industry. As for whether it causes price wars, the outside world has great differences. Some industry insiders said that the concerns and troubles of the price war in the kitchen appliance market did not exist.

From 2012 to 2017, the retail sales of the Chinese kitchen appliance market increased by an average of 13.5% per year, leading all household appliances by double-digit high growth. Today, the scale of kitchen electricity revenue has reached the critical point of 100 billion.

More importantly, the competition pattern of the top three brands, namely Fang Tai, Boss and Vantage, has been established. The rough estimate is that Fang Tai 10 billion, Boss Electric 7 billion, Vantage 5.7 billion, and the profitability of the top three brands are relatively Strong; in terms of net profit margin, Fangtai is about 12%, boss is about 20.8%, and Vantage is about 8.9%. They are the backbone of the development of the kitchen appliance market in recent years, and they have accumulated enough strength and determined to cope with the change.

At the same time, the United States, Haier and other comprehensive brand camps also have considerable strength, not only to increase investment in research and development, markets, channels, etc., but also through the capital mergers and acquisitions, cooperation and other means to seize the world's kitchen electricity economy. For example, Haier acquired US GE appliances, New Zealand's Fisher & Paykel; Midea and Electrolux established a joint venture, Hisense this year to acquire the European brand Gorenje's kitchen power business, etc., to support the high-end transformation of China's kitchen appliances.

It can be said that although the brand concentration of the kitchen appliance industry is not as good as that of white electricity, the giant has become the first driving force of the market change with absolute first-mover advantage, and has the right to define products and lead the industry.

It can be said that the mainstream market of kitchen appliances is almost occupied by the head brands of different camps, and their first competitive means is not price but value. The stable growth of kitchen appliances for decades has formed inertia, the most cutting-edge mainstream kitchen electric appliance enterprises. It is not easy to "price" this market sensitive competitive means to overdraw the market.

In particular, the kitchen electric industry is the real peak season in the second half of the year. “Golden September and Silver 10” can give kitchen and electric companies considerable space and time to digest their inventories. This is also an excellent opportunity for high-end, complete and embedded integrated kitchen appliances. . Before this arrival, the price war did not help to cut meat, which is extremely low probability.

The three strong and comprehensive differentiation has intensified, and where is the 100 billion kitchen power going?

What is certain is that the explosive growth of kitchen appliances has gone through the adjustment period, and the variables in the second half have increased sharply. At the same time, the competition pattern of the “three strong and comprehensive” of the kitchen and electric industry has taken shape, and it has been re-launched to the scale of 100 billion.

At this historic intersection, the upward momentum can be a new kinetic energy to support the next round of growth of the home appliance industry. Downward, it faces the same price war test of traditional home appliances such as refrigerators and TVs. Whether it is up and down, kitchen appliances in different locations will have different options.

At the same time, under the red sea of ​​the kitchen electricity market, it is difficult to cover the outbreak of blue-blue new products such as sink dishwashers, broken machines, water purifiers, etc. Under the strong monopoly of the head brands, it is impossible to stop the price of small brands and cross-border players. Possible.

For kitchen appliances, the second half of the year is more clear, brand differentiation, product diversification, market segmentation, service upgrades, channel sinking, etc., and the competition in the kitchen appliance market has increased dramatically. In this new environment and new intersection, the core competition of kitchen appliances is still inseparable from products, experiences and services.

Especially in product differentiation and brand influence, how to upgrade the added value of new technologies, new products and new services is the inevitable way out for the kitchen electric industry. It is impossible to lose the strategic initiality of its own development because of the temporary ups and downs of the market.

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