Question & Answer
The development trend of China's embedded kitchen appliances in 2020
With the continuous improvement of residents' consumption level, the transfer of "living room economy" to "kitchen economy" has become a general trend. The arrival of the epidemic in the first half of this year also gave people more time and energy to focus on kitchen cooking, and their attention to kitchen appliances increased accordingly. In the era of housing prices, the area of Chinese kitchens is mostly 5-8 square meters. In the limited space, kitchen appliances are facing a space battle. Embedded kitchen appliances that can maximize the use of space and can be integrated with the overall home have emerged as the times require, and have received widespread attention from consumers.
Embedded kitchen appliances have not been in China for a long time, and they have begun to develop on a large scale for more than ten years. Beginning in 2016, embedded products have seen explosive growth, with a compound annual growth rate of more than 100%. After 2018, due to the lack of pull in the real estate market, the growth rate has gradually slowed down. Under the influence of the epidemic this year, the kitchen appliance industry is under pressure as a whole, and some new development trends have also appeared in the embedded market. After analysis and summary, the following three points:
1. From the perspective of category: the penetration rate of all-in-one products has increased the fastest
The generations born in the 80s and 90s have become the main force of kitchen appliance users, and Western-style dining and cooking methods are becoming more and more popular. In the first half of this year, the upsurge of "going to the kitchen" by the whole people also stimulated the demand for electric oven products. At the same time, users are paying more and more attention to healthy diet. Cooking keywords such as "original flavor" and "less oil" are deeply rooted in the hearts of the people. The demand for electric steamers is also increasing. All-in-one products that can meet the requirements of both functions at the same time have grown very bright this year. According to data from the National Household Appliance Industry Information Center, from January to October 2020, the product scale of embedded all-in-one machines (steaming and roasting, micro-steaming, micro-roasting, and micro-steaming) was 1.67 billion yuan, a year-on-year increase of 12.1%. Affected by the epidemic in the first half of the year, the installation of embedded products was limited, and part of the sales share gave way to desktop products. And because of the integrated design of the embedded all-in-one product, it provides users with more functions and volume segment choices, and sales rebound faster. Especially for steaming and roasting integrated functional products, the share has reached more than 90%.
2. From the perspective of volume segment: different categories show a differentiated development trend
In terms of the volume of embedded products, due to the different performance and purpose of use of different categories, it also presents a direction of differentiation. On the whole, users have the strongest demand for large-volume built-in electric ovens. This year, the 70L volume segment has a higher year-on-year growth, reaching 11.6 percentage points. For other categories, the volume segment is relatively stable. The volume segment of the embedded electric steamer is concentrated in 38-42L, and the embedded integrated machine is concentrated in 40-50L. Considering the product volume and cost of use, the upgrade of embedded devices to large volumes will gradually slow down, and users are more concerned about product performance and user experience.
3. From the perspective of technical indicators: smart, efficient, and clean are the direction of product development
Although the development process of embedded kitchen appliances in China is not long and is still in the early stage of popularization, products are still iteratively upgraded while popularizing. The previous product upgrades were mainly focused on the volume and inner material. In recent years, the trend has been to enhance the intelligent and healthy cooking experience. Although sales have been affected by the epidemic, the functional upgrade of embedded products has not stalled. For example, rotary grill products that can efficiently roast whole chicken or leg of lamb have increased their sales penetration rate by 8.1% this year. It shows that consumers have higher and higher requirements for product performance, and at the same time, the upgrade of technical indicators has fully promoted the premium ability of products.
The current kitchen economy continues to develop, and embedded kitchen appliances are taking advantage of the trend to complete their iterative upgrades in the process of popularization. Although there are still certain unfavorable factors at the macro level, such as the impact of the epidemic and the real estate market, embedded kitchen appliances still have a bright future under the continuous promotion of consumption upgrades.