Color TV companies join the race for new kitchen appliance market

Last year's performance of listed kitchen appliance companies increased year-on-year. Color TV companies joined the competition for the new kitchen appliance market.

The revenue of the kitchen appliance industry continues to grow. Photo @ Visual China

　　Guangzhou Daily News (all-media reporter Duan Chenqun) Hisense range hoods, TCL's new smart range hoods, Skyworth's establishment of a kitchen appliance division, and Konka's launch of range hoods. Against the backdrop of the kitchen appliance industry outperforming the overall home appliance market, the kitchen appliance field has become a market that major color TV giants and home appliance companies are competing for.

　　Data shows that Robam Electric achieved revenue of 7.481 billion yuan in 2018, a year-on-year increase of 6.61%; net profit of 1.481 billion yuan, a year-on-year increase of 1.36%; basic earnings per share of 1.56 yuan. Vatti Group achieved operating income of 6.146 billion yuan in 2018, a year-on-year increase of 7.25%; net profit of 689 million yuan, a year-on-year increase of 35.28%. Midea Group expects to achieve a net profit attributable to its parent company of 19.8 billion to 20.8 billion yuan in 2018, a year-on-year increase of 15% to 20%. Gree Electric expects a net profit attributable to its parent company of 26 billion to 27 billion yuan in 2018, an increase of 16% to 21% over the same period last year.

　　Color TV giants are deploying kitchen appliances

　　It is reported that the steamer category has become a fast-growing category in the kitchen appliance segment. According to data from China Market Research, in 2017, the retail sales of the steamer industry reached 2.5 billion yuan, a year-on-year increase of 33%, second only to dishwashers in the growth rate of kitchen appliances. The steamer market is in a period of rapid growth, from 1 billion yuan in 2015 to 2.5 billion yuan in 2017. It is reported that in order to expand the layout of kitchen appliances, Robam Electric announced the establishment of a steamer business department in 2018, covering categories including steamers, ovens, microwave ovens, and all-in-one machines. Among the steamers sold by Robam Electric in 2018, the retail sales of embedded steamers accounted for 33.8% of the market. The steamer category continued to grow rapidly from 2017 to the first half of 2018, with a full-year growth rate of 79% in 2017. Data from January to April 2018 showed a high growth rate of 128%.

　　According to data from Aowei Cloud Network, the total retail sales of China's home appliance market in 2018 reached 832.7 billion yuan, a year-on-year increase of 1.5%. Among them, the retail sales of kitchen appliances in China in 2018 reached 64 billion yuan, and the growth rate of emerging kitchen appliances remained rapid. Data shows that in 2018, the retail sales of dishwashers in China reached 5.6 billion yuan, a year-on-year increase of 27.6%; the retail sales of microwave ovens reached 20.4 billion yuan, a year-on-year increase of 30%; and the retail sales of electric ovens reached 6.5 billion yuan, a year-on-year increase of 10.6%.

　　Faced with the rapid growth of the industry, domestic non-traditional kitchen appliance companies have made layouts. In March, Skyworth Group announced the establishment of a large kitchen appliance company to form a full-category kitchen appliance sector. During the 2019 AWE, Hisense brought new kitchen appliances to the exhibition, Konka launched the AI ​​90° range hood, Changhong displayed the smart kitchen, and TCL also announced to accelerate its layout in the kitchen appliance field. The industry said that the overall domestic home appliance market is highly competitive, but emerging kitchen appliance products have grown rapidly in the context of consumption upgrading, thus attracting five major domestic color TV companies including Hisense, Skyworth, Konka, TCL, and Changhong to make layouts. However, as more companies enter the market, the market competition among kitchen appliance companies will become more intense.