China’s home appliance market fell 36% in first quarter, expected to pick up in second

Retail sales of home appliances (excluding 3C products) in mainland China were 132.6 billion yuan in the first quarter of 2020, down 36 per cent from a year earlier, according to market research companies GFK and China Market Monitor.

Retail sales of home appliances (excluding 3C products) in mainland China were 132.6 billion yuan in the first quarter of 2020, down 36 per cent from a year earlier, according to market research companies GFK and China Market Monitor.

In recent years, despite the weakness of the domestic home appliance market due to factors such as real estate purchase restrictions, retail sales of domestic home appliances fell 4 per cent to 898.2 billion yuan in 2019 compared with the same period of the previous year, but the deep decline caused by novel coronavirus’s pneumonia epidemic in the first quarter of this year is unprecedented.

The omni-channel data of AVC, another research company, also shows that in the first quarter of 2020, retail sales of domestic refrigerators were 4.68 million, down 22.6% from the same period last year, and retail sales were 13 billion yuan, down 28% from the same period last year.

Retail sales of washing machines were 6.03 million, down 27.4% from the same period last year, and retail sales were 10.7 billion yuan, down 34.8% from the same period last year.

Air conditioners were one of the worst-hit sectors, with retail sales falling 46.6% to 5.24 million units, 58.1% to 14.9 billion yuan, and kitchen appliances down 23.7% to 11.49 billion yuan.

Despite the tremendous impact of the epidemic, China’s domestic home appliance market will gradually pick up from the second quarter, as the domestic epidemic is gradually brought under control.

Peng Xiandong, general manager of China Market Monitor’s home appliances group, predicts that in the second and third quarters of 2020, the domestic home appliance market will decline by 2% and 1% respectively compared with the same period last year, with retail sales of 269 billion yuan and 188.7 billion yuan respectively, and a year-on-year increase of 4% to 238.9 billion yuan in the fourth quarter.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/04/20/chinas-home-appliance-market-fell-36-in-first-quarter-expected-to-pick-up-in-second/.

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