In the kitchen and electric appliance industry in 2019, is it a wind or a wave?
The impact of the home industry in 2018 can be described as very large. First, the real estate industry that has been relying on for a living is cold, followed by Internet penetration, a new concept proposed by the industry, and then the capital giants began to enter the market, so that the home industry began to appear. The state of the Qing is also full of opportunities in the crisis-changing industry.
Faced with a series of changes in 2018, the home furnishing industry, which has been co-prosperous with the real estate industry, has also caused a series of fluctuations. Real estate is a cyclical industry. After enjoying the ten-year real estate dividend, the home also ushered in new and old kinetic energy conversion. The "new normal". As a segment of the home furnishing industry, the kitchen appliance industry is relatively healthy in terms of profitability and stability in the industry, but as the real estate industry enters a slow growth cycle, the expectations of kitchen appliances are also changing, in the future. The update requirements will gradually exceed the new requirements. Taking the engineering market as an example, in recent years, the trend of fine decoration of commercial houses has been strengthened, and the engineering market has increased in the company's revenue share, but in the long run, the proportion of this part cannot exceed 20%. The structure of social demand is changing. In particular, the demand for renewal in first-tier cities has surpassed the new demand, and this trend will be slowly transmitted to other markets.
Judging from the current situation, although the rapid development in recent years, the kitchen appliance market has become a billion-dollar industry. Under such a scale, high growth is difficult to maintain, and high-level consolidation is the mainstream trend. Faced with the shrinking market, capital speculators who have entered the market in the early stage will leave the market. The funds within the industry will face new risks. Without the support of funds, industry competition will intensify the face of reshuffle.
After the sharp decline in the real estate market, the decline in the kitchen appliance market in 2018 is also expected. Relevant statistics show that the existing home sales area of the new home market in 2018 fell by 25%. In contrast, the future kitchen power market will remain under pressure.
With the shrinking of funds, the transformation of the market, the kitchen appliance industry in the home market, and even the entire home industry, the overall sales will basically begin to shrink, and this result is undoubtedly a huge impact on the industry. As each company receives different market pressures, industry competition will squeeze each other and compress the living space. As the industry giants continue to annex, some low-end products and small brands are eliminated.
However, in the long-term perspective, the kitchen appliance industry will have more and better companies to stand up after such an industry reshuffle. In the future, it is undoubtedly beneficial to the industry and the market.