A small household appliance refers to low-power appliances. It can be classified into 4 types by functions. The first is cooking products (including rice cooker, soybean milk machine and microwave oven); the second is furniture products (including fan, stereo equipment and water cooler); the third is personal care appliances (including hairdryer, shaver and electronic toothbrush); the fourth is digital consumer products (including MP3 and digital camera).
The developing Chinese economy and improving personal income accelerate the pace of life. Therefore, the market of small appliances which reduce domestic labor intensity and improve the quality of life is developing rapidly.
According to CRI, in the first and second tier cities with higher income per capita, the small appliances market has been saturated. In the third and fourth tier cities and rural areas, due to the huge population (taking up over 80% of the Chinese population), different areas have different levels of economic development. Rapid economic growth in the third and fourth tier cities and rural areas provides a huge market opportunity for small appliances. The development of small appliances is characterized by short popularization period of single product, new product-driven growth and diminishing marginal utility of new products. In contrast to major appliances, lower prices of small appliances shorten the popularization period. It often sees explosive growth in one to two years before the market gets saturated and the sales growth slows down.
CRI expects that Chinese economy will remain at 6% of economic growth from 2017 to 2021. residential income will continue to rise. Considering the low prevalence of small appliance compared to developed countries, the small appliance industry is expected to grow in the next few years.