Kitchen appliance market slows down, integrated stoves face challenges: growth trend slows down

According to news on July 17, the integrated kitchen appliance market has experienced explosive growth in recent years. However, affected by the external environment, the growth rate has begun to slow down, and the overall market size has also shown a slowdown trend.

According to data from AVC, in the first half of 2023, the retail sales of major kitchen and bathroom appliances (cigarettes, stoves, disinfectants, washers, built-in, set, electricity, gas, and net) were 41.29 million units, a year-on-year decrease of 1.3%, and retail sales of 78.9 billion yuan, a year-on-year increase of 3.8%. Among them, integrated stoves, as the representative of the integrated category, had a retail sales of 1.34 million units in the first half of the year, a year-on-year decrease of 1.3%, and a retail sales of 12.4 billion yuan, a year-on-year decrease of 0.4%.

According to the editor’s understanding, while the integrated stove market is declining, several trends have emerged:

First of all, the steaming and roasting function has received more attention . Integrated stoves originally integrated functions such as disinfection cabinets and steamers, but now the proportion of such products has gradually declined, and instead the proportion of integrated steaming and baking products has gradually increased. According to monitoring data from AVC, in the first half of 2023, the retail sales of independent steaming and baking products and integrated steaming and baking products in the online market accounted for 75%, a year-on-year increase of 9%. Accounting for 59%, a year-on-year increase of 9%.

Secondly, signs of a price war began to emerge. Facing the difficulties of industry development, some companies will inevitably adopt the "price reduction promotion" strategy to increase market share. Now, this trend has also appeared in the integrated stove industry. According to data from Aowei Cloud, the prices of some mainstream styles dropped significantly in the first half of the year. For example, the average price of online steaming and grilling models dropped by 318 yuan year-on-year.

In this regard, the editor makes two suggestions for integrated stove companies: First, they should pay attention to the layout of products with different positionings. Although the market share of integrated steaming and grilling products continues to increase, we should not ignore low-priced entry-level products such as integrated sterilizers and steamers. In the long term, one of the limitations to the expansion of the integrated stove market is the rigid demand or penetration of each module. Therefore, these products have played a positive role in lowering the consumption threshold, increasing penetration and helping the industry return to the growth track.

Secondly, we should avoid falling into price war competition. Currently, as the overall market declines, there are signs that the industry is entering a price war stage, which may cause some companies to break the existing industry order. Therefore, for leading brands in the industry such as Martian and Meida, companies need to stick to their principles and work together to eliminate internal friction and return the industry to healthy competition, thereby promoting the healthy development of the industry.

Although the integrated stove market does not show signs of rapid growth in the past, integrated products are still one of the main directions for the upward development of the kitchen appliance industry. Judging from the data, in the first half of 2023, the retail sales of the integrated cooking center-stove, steam and grill part in the online market increased by 286.4% year-on-year, and the offline market increased by 87.8% year-on-year; the retail sales of integrated dishwashers in the online market increased year-on-year It increased by 42.0%, and the offline market increased by 43.5% year-on-year. Therefore, integrated stove brands should create products that meet the needs of users according to changes in user needs, so that they can return to the growth track in a new stage and continue to promote the development of the kitchen appliance industry.

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