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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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• Publisher: Gérard Lefebvre • Managing Director: Jean-François Pieri • Publishing Director:<br />

Jean-Guy Bienfait • Project Manager: Wenchao Wang • Chief Analyst: Richard Barnes • Editorial<br />

Coordination: Yingying Deng • Marketing Manager: Nathalie Meissner • Art Director: Hélène<br />

Beunat • With the participation of: Bettina Badon, Naila Ben Ghorbal, Borhan Moussa, Finn-Georg<br />

Sander • To contact them : first name.last name@cechinadaily.com<br />

• Printing: <strong>China</strong> Gold Printing Group Limited, Shenzhen 518029, Guangdong, <strong>China</strong><br />

• 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 />

publication, CLEVERDIS may in no case be held responsible for the consequences, whatever their nature may be, that may result<br />

from the interpretation of this data or content, or any eventual errors therein. Any reproduction of the content of this publication,<br />

even partial, by any means whatsoever, is strictly prohibited without the prior autorisation of the publisher. Any copy, whether by<br />

photography, photography film, magnetic tape, disc or other means constitutes a forgery, liable to punishment under French law<br />

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 />

to opinions formulated in this publication by those interviewed or cited therein. Their opinions are entirely their own, and are<br />

included with the understanding that they contain, to our knowledge, no malicious intent. The inclusion of all texts, photographs<br />

and other documents supplied by those included in this publication imply the acceptance by their authors of their free publication<br />

therein. Documents and photographs will not be returned. It should be understood that this publication contains forwardlooking<br />

statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are<br />

statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include assumptions relating<br />

to the timing of the recorded date. If any of these risks or uncertainties materialises or any of these assumptions proves incorrect,<br />

actual results could differ materially from the expectations outlined in these statements. Cleverdis assumes no obligation and<br />

does not intend to update these forward-looking statements during the period of publication.<br />

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

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