CE China Daily 2018 - Day 2 Edition
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DAY 2<br />
FRIDAY<br />
4 TH MAY <strong>2018</strong><br />
By Cleverdis,<br />
the publisher of<br />
IFA International<br />
BUYERS’ GUIDE<br />
FRIDGES<br />
E-Commerce 3.0 Comes Alive<br />
<strong>CE</strong> <strong>China</strong> <strong>2018</strong> gives deep insights into latest trends<br />
together with Asian distribution<br />
SMART<br />
IS COOL<br />
The uptake of connected<br />
appliances by consumers is<br />
likely to be driven around<br />
the refrigeration category,<br />
which will manage<br />
food provisions helping<br />
consumers to waste less,<br />
as well as eating a wider<br />
variety of healthy foods,<br />
ordering replacement<br />
items and receiving<br />
menu suggestions via<br />
smartphone technology.<br />
Find out more, in our<br />
buyers’ guide, on page 7.<br />
Roland Gerke<br />
Chairman & President,<br />
BSH Home Appliances<br />
Holding (<strong>China</strong>) Co., Ltd.<br />
Read page 5<br />
Visitors to this year’s<br />
edition of <strong>CE</strong> <strong>China</strong> will<br />
have the opportunity to<br />
get deep insights into latest<br />
e-commerce trends. Today,<br />
the E-Commerce Export<br />
Forum will be hosted by<br />
the Shenzhen E-commerce<br />
Service Center, partner of<br />
<strong>CE</strong> <strong>China</strong>. The E-Commerce<br />
Export Forum is yet another<br />
opportunity for brands,<br />
manufacturers and retailers<br />
to learn about latest<br />
trends at <strong>CE</strong> <strong>China</strong> <strong>2018</strong>.<br />
Yesterday, the new IFA Retail<br />
University offered a wide<br />
range of power-briefings<br />
from market research<br />
companies, international<br />
brands, manufacturers and<br />
innovators.<br />
Indeed, as <strong>China</strong> is a<br />
global case example of<br />
online product marketing,<br />
top brands present at <strong>CE</strong><br />
<strong>China</strong>, such as BSH (see<br />
our exclusive interview<br />
– page 5) or Haier, with<br />
their high-end Casarte<br />
brand, are able to gain new<br />
THE<br />
E-COMMER<strong>CE</strong><br />
EXPORT FORUM<br />
IS YET ANOTHER<br />
OPPORTUNITY<br />
FOR BRANDS,<br />
MANUFACTURERS<br />
AND RETAILERS<br />
TO LEARN ABOUT<br />
LATEST TRENDS AT<br />
<strong>CE</strong> CHINA <strong>2018</strong><br />
value from this exceptional<br />
platform provided by <strong>CE</strong><br />
<strong>China</strong>. This year, Haier is<br />
presenting the “Haier U+<br />
Smart Life” in four zones<br />
at <strong>CE</strong> <strong>China</strong>: Smart Living,<br />
Smart Kitchen, Smart Bath<br />
and Smart Sleeping.<br />
With outstanding new<br />
products on show, <strong>CE</strong><br />
<strong>China</strong> is again an excellent<br />
platform for business<br />
networking.<br />
TRADE TALK<br />
HOME APPLIAN<strong>CE</strong>S<br />
Chen<br />
Zhang<br />
CTO, JD.com<br />
The Chinese<br />
e-commerce landscape<br />
is already one of the<br />
most developed in the<br />
world, but continues<br />
to see tremendous<br />
changes. About 18%<br />
of retail takes place<br />
online in <strong>China</strong>, about<br />
double that of the US.<br />
» Read page 4<br />
Natalia<br />
Andrievskaya<br />
Global Director,<br />
Major Domestic<br />
Appliances, GfK<br />
Online channel is<br />
still a driver of the<br />
MDA market, adding<br />
that this doesn’t<br />
cannibalise offline,<br />
but brings incremental<br />
growth. In 2017, 25%<br />
of global sales were<br />
online, as opposed to<br />
23.7% in 2016 and<br />
21.7% in 2015.<br />
» Read page 6
PREFA<strong>CE</strong><br />
PREFA<strong>CE</strong><br />
Richard Barnes<br />
Opening Ceremony Attracts<br />
Major Media Attention<br />
Back to<br />
the Roots<br />
While this is the third edition of <strong>CE</strong> <strong>China</strong> in Shenzhen,<br />
the roots of the event go much deeper. <strong>CE</strong> <strong>China</strong> is part<br />
of the “global IFA events family”. It was in 1924 that the<br />
first IFA took place, and over the years, the show became<br />
the world’s leading event for consumer electronics and<br />
home appliances. IFA is now known as the trade show for<br />
connected living, and it was this concept that inspired <strong>CE</strong><br />
<strong>China</strong>. As Jens Heithecker, IFA Executive Director & Messe<br />
Berlin Vice-President, <strong>CE</strong> <strong>China</strong> Chairman, explained in<br />
his opening speech here yesterday, IFA is based on a very<br />
specific and unique concept, addressing retailers as well<br />
as brand products. It was this approach that made IFA<br />
Berlin the most successful and the most international<br />
efficient retail meeting, and because of this history and<br />
experience, leading Chinese retailers asked Messe Berlin<br />
to support them in getting connected with more western<br />
brands. The idea to establish a new brand retail show<br />
here in <strong>China</strong> was born and today, the baby is standing<br />
on its own two feet<br />
The opening ceremony of the third<br />
edition of <strong>CE</strong> <strong>China</strong> saw a major<br />
media turnout, with the cream of<br />
the industry, along with Chinese<br />
government representatives, on the<br />
stage for a ribbon-cutting ceremony.<br />
Jens Heithecker, IFA Executive Director<br />
& Messe Berlin Vice-President, <strong>CE</strong><br />
<strong>China</strong> Chairman, received a warm<br />
welcome from local delegations,<br />
and took the time to underline his<br />
organisation’s philosophy regarding<br />
this event: “Firstly, <strong>CE</strong> <strong>China</strong> is about<br />
helping the brand industry to get<br />
personal access to qualified retail<br />
instead of having to rely solely on<br />
online distribution. Secondly, <strong>CE</strong><br />
<strong>China</strong> is about supporting retailers to<br />
make a difference in quality to online<br />
business. We help them to learn about<br />
the opportunities of additional value<br />
of brands and upselling strategies,<br />
and following this approach, <strong>CE</strong> <strong>China</strong><br />
is developing in <strong>2018</strong> with more<br />
western brands exhibiting.”<br />
The IFA “boss” added, “We are<br />
convinced that we serve the Chinese<br />
consumer market more effectively<br />
and that we correspond well with<br />
the initiatives by the Chinese<br />
government.”<br />
Finally, Mr Heithecker gave some<br />
Key Performance Indicators from last<br />
year’s event. “86% of all visitors were<br />
impressed by <strong>CE</strong> <strong>China</strong> and wanted<br />
to revisit again this year. Even 90%<br />
of the visitors had influence regarding<br />
purchasing decisions. It is our joint task<br />
to establish new business contacts<br />
and to increase these figures.”<br />
Dai Fengjun, Executive Vice-President<br />
South <strong>China</strong> Region – Suning.com<br />
group also addressed the audience,<br />
stating, “Suning is now not only a<br />
retail operator and internet company,<br />
but also a technology enterprise. This<br />
year, Suning put forward ‘smart retail<br />
for a better life’ as well as the idea of<br />
a good product, a good service and a<br />
good life. We hope that through this<br />
exhibition, we can introduce more<br />
technology and more noble products.<br />
And through the IFA platform, we<br />
hope that Chinese products can be<br />
placed on the global stage”<br />
<strong>CE</strong> <strong>China</strong> <strong>Daily</strong> is a CLEVERDIS Publication<br />
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• Cover: © BSH Home Appliances Holding (<strong>China</strong>) Co., Ltd.<br />
© CLEVERDIS <strong>2018</strong> - Registration of Copyright May <strong>2018</strong><br />
Information presented in this publication is purely indicative in order to illustrate subjects contained therein. No guarantee<br />
can be given as to the accuracy of data or content at time of printing and thus the latter should not be used for professional<br />
or commercial ends. While all efforts have been made as to accuracy and pertinence of content and data contained in this<br />
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according to the legislation of 11 th March 1957 covering copyright. All brands cited in this publication are registered trade marks<br />
and/or belong to companies which are their respective proprietors. The publishers and editorial staff decline all responsibility as<br />
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Photo Credits and Copyright: All Rights Reserved.<br />
Chu Jianzhong, General Manager Shenzhen Branch – Haier; Yang<br />
Hongyu, Vice General Manager – Shenzhen Investment Holdings<br />
Co., Ltd.; Hu Xiaoqing, Deputy Director-General - Economy, Trade<br />
and Information Commission of Shenzhen Municipality; Chen Biao,<br />
Vice Mayor - Shenzhen Municipal Government; Jens Heithecker, IFA<br />
Executive Director & Messe Berlin Vice-President, <strong>CE</strong> <strong>China</strong> Chairman;<br />
Dai Fengjun, Executive Vice-President South <strong>China</strong> Region - Suning.<br />
com Group; Orient Zhu, <strong>China</strong> Vice President - IDG Group; Chen<br />
Wenbing, National Sales Key Account General Manager - BSH Home<br />
Appliances (<strong>China</strong>) Co., Ltd.; Sophie Shao, Brand Management<br />
Director - Midea Group; and Wolfgang Niedermark, Chief<br />
Representative - German Industry and Commerce Ltd.<br />
2
NEWS<br />
推 进 智 能 化<br />
生 产<br />
家 电 品 牌 格 兰 仕 为 “ 中<br />
国 制 造 ” 正 名<br />
Promoting Intelligent<br />
Manufacturing<br />
Galanz home appliance business changes<br />
meaning of “Made in <strong>China</strong>”<br />
中 国 家 电 品 牌 格 兰 仕 将 携 其 全 套 G+ 智 能 家 电<br />
出 席 <strong>CE</strong> <strong>China</strong>。 专 门 从 事 家 电 制 造 行 业 39 年<br />
的 格 兰 仕 以 其 在 微 波 炉 行 业 的 专 业 技 术 而 闻<br />
名 , 但 如 今 其 业 务 范 围 已 经 拓 展 至 各 类 微 波<br />
炉 , 空 调 , 冰 箱 , 洗 衣 机 , 干 衣 机 , 洗 碗 机<br />
和 其 他 的 小 型 家 电 。<br />
在 过 去 的 20 年 中 , 格 兰 仕 与 欧 洲 许 多 知 名 品<br />
牌 建 立 了 战 略 合 作 关 系 , 有 近 2 亿 家 电 产 品 出<br />
口 到 了 欧 洲 。 他 们 与 博 世 集 团 (Bosch) 的 战<br />
略 合 作 从 微 波 炉 和 电 动 蒸 汽 炉 开 始 , 随 之 在<br />
欧 洲 和 亚 洲 地 区 共 同 开 发 市 场 。 此 外 , 格 兰<br />
仕 还 专 门 为 CASO( 德 国 家 电 品 牌 ) 针 对 中 高<br />
端 用 户 群 定 制 了 i 系 列 微 波 产 品 。<br />
The Chinese brand Galanz is present<br />
at <strong>CE</strong> <strong>China</strong> with the whole set of G+<br />
intelligent home appliances. Specialised in<br />
manufacturing for 39 years, Galanz was<br />
primarily known for its expertise in the<br />
microwave trade, but its business now<br />
covers a full supply of microwave ovens,<br />
air conditioners, refrigerators, washing<br />
machines, dryers, dish washers and other<br />
small home appliances.<br />
Over the past 20 years, Galanz has<br />
established strategic partnerships with many<br />
famous brands in Europe, with almost 200<br />
million home appliances exported to Europe.<br />
The strategic cooperation with Bosch Group<br />
started from microwave to electric steam<br />
stove, and co-developed markets in Europe<br />
and Asia. Furthermore, I-series microwave<br />
products have been customised for CASO<br />
targeting middle and high-end user group.<br />
At the same time, Galanz is developing<br />
strategic cooperation with global<br />
mainstream retail channels covering<br />
products from kitchen appliances to white<br />
goods and improving international strategic<br />
cooperative value through independent<br />
innovation and brand. Galanz has directly<br />
entered into business with many mainstream<br />
retail channels in Europe, such as Media<br />
Markt, Saturn, METRO, Aldi South, Kaufland,<br />
Carrefour (France), and Fillony.<br />
Galanz has established subsidiaries and R&D<br />
centres in Germany, UK and France, and<br />
employed local talent to build local teams<br />
for marketing, operation and quality control,<br />
accelerating retail business development<br />
as well as building local warehousing and<br />
logistic distribution system in Europe<br />
» STAND 9B08<br />
与 此 同 时 , 格 兰 仕 正 与 全 球 各 主 流 零 售 平 台<br />
发 展 战 略 合 作 伙 伴 关 系 , 涵 盖 的 产 品 包 括 了<br />
从 各 类 厨 房 电 器 到 大 白 家 电 , 另 外 , 他 们 还<br />
利 用 自 主 创 新 和 品 牌 来 提 升 国 际 战 略 合 作 价<br />
值 。 如 今 格 兰 仕 产 品 借 助 与 欧 美 众 多 知 名 品<br />
牌 结 成 的 战 略 伙 伴 关 系 直 接 进 入 欧 洲 市 场 ,<br />
如 万 得 城 电 器 (Media Markt)、 土 星 电 器<br />
(Saturn)、 麦 德 龙 集 团 (METRO)、 奥 乐<br />
齐 连 锁 超 市 (Aldi South)、 考 夫 兰 特 超 市<br />
(Kaufland)、 法 国 家 乐 福 (Carrefour) 和<br />
翡 利 (Fillony)。<br />
格 兰 仕 在 德 国 , 英 国 和 法 国 已 经 建 立 了 其 分<br />
公 司 和 研 发 中 心 , 聘 请 了 当 地 人 才 并 组 建 了<br />
本 地 团 队 进 行 市 场 营 销 、 操 作 运 营 和 质 量 控<br />
制 , 以 此 加 快 其 零 售 业 务 的 发 展 、 建 立 其 本<br />
地 仓 储 和 欧 洲 范 围 内 的 物 流 配 送 系 统<br />
» STAND 9B08<br />
<strong>CE</strong> <strong>China</strong> <strong>Daily</strong> • Friday 4 th May <strong>2018</strong><br />
3
TRADE TALK<br />
Drones, Autonomous Vehicles<br />
and Automated Warehouses<br />
Not the future; today – in <strong>China</strong> – with JD.com<br />
Chen Zhang is JD.com’s CTO, overseeing the company’s<br />
R&D capabilities with a focus on addressing the ecommerce<br />
industry’s biggest technological challenges. At JD.com, he also<br />
leads the company’s programmes to develop innovative and<br />
cutting-edge technologies, its external collaboration programs,<br />
and its development of international talent. The company<br />
recently started testing robotic delivery services and building<br />
drone delivery airports, as well as operating driverless delivery<br />
by unveiling its first autonomous truck, so we asked Mr Chen<br />
to tell us more.<br />
We now have daily operations for<br />
drone delivery in several locations<br />
in <strong>China</strong>. We use drone delivery to<br />
lower logistics costs and increase<br />
efficiency in areas where complex<br />
terrain and poor infrastructure make<br />
“last mile” logistics challenging.<br />
JD.com is also building out fullyautomated<br />
warehouses, including<br />
the first fully automated business-toconsumer<br />
warehouse in the world,<br />
which has already begun operations<br />
in Shanghai. Meanwhile, we are<br />
leveraging AI, deep learning and<br />
image recognition technologies to<br />
develop smart logistics solutions.<br />
We’ve been testing autonomous<br />
delivery vehicles in a few university<br />
campuses in <strong>China</strong>. In the long<br />
term we expect these vehicles to<br />
make urban deliveries in locations<br />
like corporate campuses and office<br />
buildings.<br />
Moreover, we are researching<br />
autonomous light electric vans with<br />
industrial partners for the delivery of<br />
goods from JD’s distribution centres<br />
to delivery stations in the future.<br />
How is big data helping put your<br />
company compete in the market?<br />
JD.com’s advanced big data analytics<br />
are increasingly providing brands and<br />
consumers an enhanced shopping<br />
experience.<br />
Our dynamic pricing initiatives<br />
maximise efficiency through<br />
sophisticated algorithms that<br />
provide real-time pricing for 4 million<br />
products stored in JD warehouses.<br />
JD.com has joined forces with<br />
Tencent, Baidu and other internet<br />
giants in <strong>China</strong>. The partnerships<br />
give JD the most complete data set<br />
of user habits of anyone in <strong>China</strong>’s<br />
Internet space – extending JD.com’s<br />
leadership in offering brands<br />
unrivalled insights to help retailers<br />
reach the right target consumers<br />
quickly and effectively, providing<br />
outstanding ROI.<br />
What do you see as being the<br />
key trends in the evolution of<br />
consumer demand in <strong>China</strong>?<br />
The Chinese e-commerce landscape<br />
is already one of the most developed<br />
in the world, but continues to see<br />
tremendous changes. About 18%<br />
of retail takes place online in <strong>China</strong>,<br />
about double that of the US. By<br />
2020, Chinese online purchases are<br />
expected to exceed those of the US,<br />
UK, France, Germany and Japan<br />
combined.<br />
<strong>China</strong> is a mobile-first commerce<br />
market and Chinese consumers look<br />
for the best consumer experience.<br />
On JD.com, about 80% of our orders<br />
come from mobile and for our users<br />
in many parts of <strong>China</strong>, same-day<br />
delivery is seen as a standard.<br />
Another key evolution is that Chinese<br />
consumers are becoming more<br />
and more discerning. They look for<br />
quality products and therefore, the<br />
demand for imported goods is rising<br />
sharply. The rapid growth of our<br />
cross-border e-commerce platform<br />
JD Worldwide is an illustration of<br />
this trend.<br />
Thoughts on omni-channel?<br />
Today, reaching Chinese customers<br />
means for brands developing an<br />
omni-channel strategy using online<br />
social media channels, CRM & omni<br />
channel strategies.<br />
JD.com has been a global leader in<br />
the shift to omnichannel.<br />
For instance, we have jointly<br />
Chen Zhang<br />
CTO, JD.com<br />
deployed with Walmart a supply<br />
chain and backend system to<br />
integrate inventory management.<br />
When a customer places an order<br />
on JD.com, our order management<br />
system will determine whether a<br />
JD.com warehouse or Walmart<br />
store is closer to the customer, and<br />
dispatch a courier accordingly.<br />
We also launched JD-Tencent Retail<br />
Marketing Solution. We co-develop<br />
a secure database of shopping data<br />
that will give brands the ability to<br />
better understand user preferences<br />
and target potential consumers,<br />
regardless of whether consumers<br />
choose to shop online or in-store.<br />
We are also rolling out offline “JD<br />
Retail Experience Shops”, where<br />
customers can touch and feel<br />
products sourced from JD.com.<br />
JD’s technology, powered by<br />
predictive analytics using big data,<br />
will keep offline stores stocked<br />
with recommended categories and<br />
suggested amounts of products,<br />
while localizing the selection<br />
depending on consumer buying<br />
preferences in each location<br />
BY 2020,<br />
CHINESE ONLINE<br />
PURCHASES<br />
ARE EXPECTED<br />
TO EX<strong>CE</strong>ED<br />
THOSE OF THE<br />
US, UK, FRAN<strong>CE</strong>,<br />
GERMANY<br />
AND JAPAN<br />
COMBINED.<br />
4
EXCLUSIVE INTERVIEW<br />
BOSCH HA HAS<br />
COLLABORATED WITH LIVE<br />
STREAMING PLATFORM ON<br />
SUNING.COM<br />
Roland Gerke<br />
Chairman & President,<br />
BSH Home Appliances Holding (<strong>China</strong>) Co., Ltd.<br />
Consumer Centricity, Digitalisation<br />
& Localisation<br />
BSH develops new categories and new functionality<br />
in home appliances in Asia<br />
BSH is back at <strong>CE</strong> <strong>China</strong> for its third year. We asked Roland<br />
Gerke, Chairman & President of BSH Home Appliances Holding<br />
(<strong>China</strong>) Co., Ltd. what the key elements are for his company’s<br />
success in this market.<br />
BSH Region Greater <strong>China</strong> was<br />
particularly outstanding with an<br />
18% jump in revenue including<br />
categories of refrigerator, washing<br />
machine and dishwasher. BSH<br />
has been driven by the strategy of<br />
consumer centricity, digitalisation<br />
as well as localisation. BSH<br />
actively expands online and offline<br />
distribution channels and enhances<br />
customer service experiences to<br />
meet their demands while being<br />
committed to develop premium<br />
products.<br />
What are the “sweet spots” in<br />
the <strong>China</strong> market? What product<br />
categories are shining?<br />
The “sweet spots” of traditional<br />
home appliances are new products,<br />
new categories development<br />
and new function upgrades. The<br />
market growth points focus on<br />
new categories like dishwasher and<br />
oven. Traditional appliances like<br />
refrigerator and washing machine<br />
also shine in growth points, such<br />
as dryer and washer-dryer. BSH’s<br />
main products and advantages are<br />
premium appliances such as multidoor<br />
refrigerator, dishwasher and<br />
dryer. With the intensifying trend of<br />
consumption upgrade in <strong>China</strong>, BSH<br />
has high expectations on emerging<br />
categories like dishwasher and oven.<br />
This is the third year BSH is one<br />
of the biggest exhibitors at <strong>CE</strong><br />
<strong>China</strong>. What are your results like<br />
from this show, and how do you<br />
see its future?<br />
As a premier trade show for<br />
consumer electronics and home<br />
appliances, <strong>CE</strong> <strong>China</strong> integrates retail<br />
trade to bridge the gap between<br />
manufacturers and customers.<br />
This great opportunity allows BSH<br />
to engage in networking and<br />
collaboration activities with both<br />
Chinese retailers and customers.<br />
Though participating in <strong>CE</strong> <strong>China</strong>,<br />
BSH would like to bring its premium<br />
products, advanced technologies as<br />
well as the concept of Healthy Living<br />
to public while delivering higher<br />
quality and healthy modern home<br />
life to more Chinese customers.<br />
We believe there will be more<br />
manufacturers and brands to get<br />
mutual communication, learning<br />
and interactions with customers by<br />
leveraging the platform of <strong>CE</strong> <strong>China</strong>.<br />
What are the highlights of your<br />
stand this year?<br />
Bosch HA introduced Bosch<br />
VitaFreshpro multi-door refrigerator<br />
with our powerful Vita FreshPro<br />
technology. This new product will<br />
bring customers with brand-new<br />
experience of freshness by providing<br />
the food with accurate storage<br />
temperature and humidity.<br />
In addition, our washing machine,<br />
dishwasher and vacuum cleaner<br />
bring an overall experience of Clean<br />
to visitors. All categories of our<br />
products with the function of Home<br />
Connect show the visitors with a<br />
healthy and smart modern home life<br />
scene. We would like to highlight<br />
our theme of Simply Healthy, Simply<br />
Goodness to the visitors.<br />
Bosch HA has collaborated with<br />
live streaming platform on Suning.<br />
com by connecting the exhibition in<br />
Shenzhen and our store in Nanjing<br />
Suning to interact and discuss on<br />
Healthy Living topic with customers.<br />
<strong>China</strong> is by far the biggest<br />
adopter of smart products. Why<br />
so? And how are you meeting<br />
this demand?<br />
There is a good foundation of<br />
internet ecological environment in<br />
<strong>China</strong>. The level and structure of<br />
consumers is changing, especially<br />
the new generation of consumers<br />
have broader perspectives and<br />
prefer on smart home appliances.<br />
BSH Home Appliances Group started<br />
researching and developing smart<br />
home solutions in 2007. Since that<br />
time, BSH has been among the first<br />
home appliances companies in the<br />
world to invest in the development<br />
of smart home solutions.<br />
Home Connect is an open source<br />
platform, and is the first solution in<br />
the world that allows users to control<br />
a variety of home appliances and<br />
brands through a single app. The<br />
app has now evolved from version<br />
1.0 to version 2.0, which features<br />
more advanced capabilities. BSH is<br />
on track to proactively cooperate<br />
with global and local partners –<br />
including Google Nest and Alibaba<br />
– to nurture the ecosystem and<br />
provide more customer-tailored<br />
smart home offerings.<br />
At present, the full range of BSH<br />
home appliances have been enabled<br />
with “Home Connect”. Based on<br />
its world-leading expertise and<br />
technological know-how, BSH<br />
is providing fully localised Home<br />
Connect functionality to Chinese<br />
consumers, with extra care on data<br />
security and sensitivity<br />
<strong>CE</strong> <strong>China</strong> <strong>Daily</strong> • Friday 4 th May <strong>2018</strong><br />
5
HOME APPLIAN<strong>CE</strong>S<br />
Natalia<br />
Andrievskaya<br />
Global Director,<br />
Major Domestic<br />
Appliances, GfK<br />
Udo Jansen<br />
Global Director,<br />
Small Domestic Appliances,<br />
GfK<br />
Home Appliances Surf on a Wave of Success<br />
GfK forecasts healthy growth for both major and small appliances for <strong>2018</strong><br />
MAJOR APPLIAN<strong>CE</strong>S<br />
According to GfK, 4.1%<br />
market growth is expected<br />
for global sales of major<br />
domestic appliances in <strong>2018</strong>.<br />
Natalia Andrievskaya, Global<br />
Director – Major Domestic<br />
Appliances, GfK, told an<br />
audience of journalists at the<br />
IFA Global Press Conference<br />
in Rome last month that<br />
online channel is still a<br />
driver of the MDA market,<br />
adding that this doesn’t<br />
cannibalise offline, but<br />
brings incremental growth.<br />
In 2017, 25% of global sales<br />
were online, as opposed to<br />
23.7% in 2016 and 21.7%<br />
in 2015. Looking at freestanding<br />
refrigerators and<br />
washing machines, these<br />
figures are higher, with<br />
30% of fridges and 34%<br />
of washing machines being<br />
sold through online channel.<br />
Smart Appliances<br />
The onset of Smart<br />
Appliances is particularly<br />
strong in <strong>China</strong>. According<br />
to GfK, 50% of consumers<br />
worldwide are sure that<br />
Smart Home will change<br />
their lives in the near future,<br />
however in <strong>China</strong>, this<br />
figure is 75%. In Japan, only<br />
19% of consumers agreed<br />
with this statement. The<br />
number of smart (major)<br />
home appliances sold on the<br />
global market has increased<br />
exponentially from the early<br />
days of the technology. While<br />
in 2012, only seven products<br />
were on the market, 4,131<br />
smart products could be<br />
found in 2017 and this year<br />
the figure has climbed to<br />
7,178. Likewise, the value<br />
share of smart appliances<br />
is increasing globally. APAC<br />
has by far the highest<br />
share, with 21.8% of major<br />
appliances sold in February<br />
<strong>2018</strong> being “smart”, as<br />
opposed to 9.3% in Western<br />
Europe.<br />
<strong>China</strong> has the highest<br />
share of smart appliances<br />
in the world, with 19.2%<br />
of refrigerators, 36.3%<br />
of washing machines and<br />
40.2% of air conditioners<br />
being “smart”.<br />
“It’s fascinating to see that in<br />
<strong>China</strong>, smart product groups<br />
have already reached levels<br />
we didn’t expect before”,<br />
says Ms Andrievskaya. “Even<br />
though <strong>China</strong> is one of the<br />
most advanced countries in<br />
the world, in terms of share<br />
of smart appliances, we<br />
still see big differences by<br />
product.”<br />
SMALL DOMESTIC<br />
APPLIAN<strong>CE</strong>S<br />
Udo Jansen – Global<br />
Director, Small Domestic<br />
Appliances, GfK, states<br />
that in this category, the<br />
key aspect today is more<br />
than ever innovation. New<br />
appliances and new product<br />
categories are popping<br />
up all the time, and major<br />
growth is being seen in<br />
such product categories<br />
as handstick rechargeable<br />
vacuum cleaners, robotic<br />
vacuum cleaners, and air<br />
fryers, where connectivity is<br />
increasingly important.<br />
According to GfK, the global<br />
market for small appliances<br />
in 2017 amounted to<br />
US$65.2bn. That’s a rise of<br />
8% over the previous year.<br />
The sector is being boosted<br />
by product categories that<br />
didn’t exist before, such as<br />
personal connected scales,<br />
massage mats, and new<br />
kinds of food preparation<br />
machines.<br />
Yet again <strong>China</strong> leads the<br />
world in terms of market<br />
share for connected small<br />
devices. 50% of robot<br />
vacuum cleaners sold<br />
in <strong>China</strong> in 2017 were<br />
connected, as opposed to<br />
26% in 2016.<br />
<strong>China</strong> has also become the<br />
biggest virtual marketplace<br />
in the world for small<br />
appliances, with growth<br />
of 38.7% in sales in 2017<br />
to EUR6.4bn. At the same<br />
time, Chinese consumers<br />
are willing to accept<br />
premium products and<br />
better equipped appliances<br />
over time. For example,<br />
pistol-grip hair dryers in the<br />
“over 150 CNY” category<br />
made up for only 35% of<br />
the market in 2016, but<br />
leapt to 51% in 2017.<br />
Overall, the global key trends<br />
for SDAs are as follows:<br />
1. Continuously good<br />
growth rates – the positive<br />
and dynamic trend<br />
continues;<br />
2. Trading up – consumers<br />
are going for higher priced,<br />
better equipped appliances;<br />
3. Innovation & new market<br />
segments – The SDA market<br />
is driven by innovations and<br />
smart appliances, as well as<br />
new product categories;<br />
4. Energy efficiency: EU<br />
energy labels<br />
5. Connectivity & smart<br />
homes: This will bring new<br />
benefits to consumers<br />
6. Growth of internet sales:<br />
This impacts SDA sales,<br />
however share of online<br />
sales differs greatly country<br />
by country<br />
CHINA<br />
HIGHEST SHARE<br />
OF SMART<br />
APPLIAN<strong>CE</strong>S<br />
IN THE WORLD<br />
2,5%<br />
Smart REF<br />
(Sales Value %)<br />
2015 2016<br />
10,1% 19,2%<br />
2017<br />
2.4 9.2 18.4<br />
(Sales Value, billion)<br />
8,7%<br />
Smart WM<br />
(Sales Value %)<br />
18,6%<br />
2015 2016<br />
36,3%<br />
201701-10<br />
5.7 12.7 20.7<br />
(Sales Value, billion)<br />
Smart Air-con<br />
(Sales Value %)<br />
40,2%<br />
8,6%<br />
22,9%<br />
2015 2016 201701-10<br />
10.6 30.0 56.1<br />
(Sales Value, billion)<br />
Source: GfK - IFA GPC <strong>2018</strong><br />
REF<br />
WM<br />
Air-con<br />
6
BUYERS' GUIDE<br />
FRIDGES<br />
THE MARKET<br />
In line with the global trends<br />
towards built-in appliances, builtin<br />
refrigerators are also on the<br />
rise, as open kitchens become<br />
more the norm around the globe.<br />
In 2017, the trend was supported<br />
by increased manufacturers’ new<br />
launch activity.<br />
CHINA GETS (EVEN) SMARTER<br />
<strong>China</strong> has the highest share of<br />
smart appliances in the world,<br />
with 19.2% of refrigerators sold<br />
in 2017 being smart, and the<br />
trend continues. 75% of Chinese<br />
consumers interviewed by GfK<br />
said they thought smart home<br />
would soon change their lives.<br />
That means there’s still plenty of<br />
room on the upside.<br />
NOFROST DRIVING GROWTH<br />
As consumers nowadays admit<br />
to preferring to have more time<br />
than money, convenience of<br />
the NoFrost refrigerators comes<br />
in handy. These appliances are<br />
showing steady growth in sales.<br />
The trend proves to be true not<br />
only for freestanding, but also for<br />
built-in.<br />
THE FUTURE<br />
There has been a significant<br />
amount of product development<br />
and innovation in the refrigeration<br />
market. Manufacturers have<br />
continued to add value through<br />
introducing better technologies,<br />
improved materials and advances in<br />
design.<br />
Consumers today have a wider<br />
choice of sizes, combinations and<br />
functionality than ever before, but<br />
even so the standard fridge-freezer,<br />
with one above the other, remains by<br />
far the most popular format.<br />
STATE OF PLAY<br />
Innovation has touched almost every aspect of<br />
design in the market for refrigeration, inspiring<br />
consumers to trade up for better style, functionality<br />
and different formats.<br />
Today fridges and freezers come in a range of<br />
colours, have a variety of storage solutions, are<br />
more energy-efficient, keep food fresher for longer<br />
and can even be a status symbol – something to<br />
impress visitors.<br />
Now the market is poised for a revolution in<br />
connectivity as smart fridges are becoming<br />
available at prices people can afford.<br />
INNOVATIONS TO LOOK FOR AT <strong>CE</strong> CHINA<br />
SMART PRODUCTS<br />
The uptake of<br />
connected appliances<br />
by consumers is likely<br />
to be driven around the<br />
refrigeration category,<br />
which will manage<br />
food provisions helping<br />
consumers to waste less,<br />
as well as eating a wider<br />
variety of healthy foods,<br />
ordering replacement<br />
items and receiving<br />
menu suggestions via<br />
smartphone technology.<br />
PERSONALISATION<br />
Manufacturers are tapping<br />
into the growing trend for<br />
personalisation, as people are<br />
looking for products that suit<br />
their specific requirements.<br />
Featuring easy-to-use customisable<br />
compartments and a cooling<br />
system that preserves taste and<br />
texture to a new level, is a highly<br />
adaptive fridge storage system.<br />
Inner-door storage allows<br />
consumers to style their fridge<br />
just the way they like it, which<br />
may include plastic boxes that are<br />
helpful for keeping ingredients<br />
separate.<br />
INNOVATING @ <strong>CE</strong> CHINA<br />
ENTER THE ANTIOXIDANT ZONE…<br />
WITH THE CASARTE F+ 520<br />
• Original F+ design<br />
There are 5 large spaces which are equipped with original<br />
technology to customise exclusive storage space for the<br />
family.<br />
• MSA oxygen control preservation<br />
Original oxygen-control and freshness technology,<br />
separation of nitrogen and oxygen, delaying the oxidation<br />
of food materials, to keep food fresher for a longer time.<br />
• Flush insert concept<br />
Integration of cabinets, freedom of personality,<br />
achievement of high-end kitchens.<br />
» STAND 9A02<br />
ENERGY EFFICIENCY<br />
Energy efficiency in home<br />
appliances has pushed forward<br />
significantly over the last few<br />
years, and replacement can help<br />
make sure the kitchen starts life<br />
with high performance, bringing<br />
cheaper bills and reductions in<br />
greenhouse gas emissions.<br />
The difference in running costs<br />
between old and new appliances<br />
can be significant. Some of the<br />
biggest savings can be found in<br />
refrigeration, which should not<br />
come as a surprise as fridges and<br />
freezers are working round the<br />
clock.<br />
STAR OF THE MIDEA BOOTH<br />
– THE BCD-750WGPZV<br />
• Wide Temperature range<br />
The first fridge with exclusive temperature interval from -30°<br />
to +20°C with precisely controlled zones;<br />
• Smart<br />
With AI REF 4.0 system, smart functions like real time food<br />
monitoring, temperature remote control, customized options<br />
based on health data are possible;<br />
• Decorative<br />
The KMI glass door combines the beauty of glass and steel,<br />
enabling this fridge to match most furnishing styles? A 21.5-<br />
inch HD screen is concealed in the glass whenever not in use.<br />
» STAND 9A05<br />
<strong>CE</strong> <strong>China</strong> <strong>Daily</strong> • Friday 4 th May <strong>2018</strong><br />
7