The kitchen and bathroom products will grow steadily in the next five years

With the improvement of people’s living standards and improvement of housing conditions, kitchen and toilet companies are constantly improving the functionality and comfort of their products. In recent years, the household attributes of kitchen and bath products have become more prominent and more in line with the needs of modern families. At the same time, consumers are more interested in attractive products, such as near-suction range hoods, European range hoods, embedded sterilizers, and embedded gas stoves have all enjoyed relatively good growth in recent years. Recently, at the 2013 China Kitchen Industry Development Forum in Shanghai, Peng Yi, the deputy general manager of Zhong Yikang, said that the kitchen and toilet industry will maintain a compound annual growth rate of 10% in the next five years.

Steady increase in kitchen and bathroom products Peng Xin said that China's home appliance market has maintained a rapid growth trend for more than 30 years, but in 2012 due to factors such as the withdrawal of financial incentives and real estate control, the industry experienced a 4.8% decline. Based on the low base in 2012, the market experienced a 17.6% rebound in the first three quarters of 2013. The total size has exceeded 1 trillion yuan, and it is expected that the scale will be around 1.3 trillion yuan in the whole year. In addition to the lower base factor of the same period, the reasons for the large-scale increase of the market this year include real estate, especially the rebound of the second-hand housing sales market, energy-saving subsidies and other factors.

In the next five years, the kitchen and toilet industry will maintain a compound annual growth rate of 10%. From 2008 to the first three quarters of 2013, China's kitchen and toilet markets are in a stable state of operation. Peng Yu believes that the external factors affecting the kitchen and toilet industry mainly include the following points: First, real estate is the industry most relevant to China's kitchen and toilet industry. At present, the quantity of kitchen and toilet products in China is relatively low, and the consumer demand for kitchen and toilet products is mainly based on new demand, which is greatly affected by the sales of real estate in China. In particular, the overall rise in real estate in 2009 and 2013 was good, which played a role in escorting kitchen and toilet products. Second, the macro economy has a direct impact on consumer expectations for future income and management of current consumer behavior. It has a significant influence on the entire home appliance market. Finally, related state policy subsidies, such as home appliances to the countryside and energy-saving subsidies, have promoted the rapid spread of kitchen and toilet products.

Expansion of Online Sales Scale At present, the urbanization rate in China exceeds 50%, but it only accounts for about 35% of the total population, which is far below the average level of the developed countries. The increase in the urbanization rate represents a change in the lifestyle of consumers and will greatly promote kitchen and bathroom products. Compared with other household appliances, the household ownership of kitchen and bathroom products in China is still at a relatively low level. With the continuous increase in the income of Chinese residents and the constant promotion of manufacturers' kitchen and bathroom products, the future will be given to kitchen and toilet products. The continuous growth has laid a very good foundation. At the same time, the business opportunities brought by the development of the Internet to the kitchen electricity market is one of the biggest bright spots. The Yikang monitoring data showed that in the first three quarters of this year, sales of kitchen and bathroom products increased by 17.6% year-on-year. Among them, the growth rate of e-commerce channels reached 185.7%, which is 20 times the growth rate of offline channels.

Based on the above considerations, Peng Yu believes that the future development of kitchen and toilet products is huge. The compound growth rate of China's kitchen and toilet products in the next five years will reach about 10%, which is 4 to 5 percentage points higher than the overall growth rate of home appliances. In 2016, the scale of China's kitchen and toilet industry will reach 199.5 billion yuan. Future kitchen and bath products will be more intelligent, energy-saving and systematic. From the aspect of channels, the future kitchen and toilet products will have a good development in the e-commerce platform. Zhong Yi Kang predicts that by 2016, the sales of online home appliances will reach 400 billion yuan, which will account for 27.5% of all home appliance market sales, while the online sales of kitchen and bathroom products will exceed 16.8 billion yuan in 2014.