IFA iNternational 2019 DAY 4 Edition

cleverdis

REGION

SPOTLIGHT ON

CHINA

GfK ON CHINA

Current trends in technical consumer goods markets

Chinese e-commerce growth is reaching a plateau,

according to market analysts GfK. On a regional level,

APAC and China are, of course, the world’s key markets

for online sales. Historically Chinese e-commerce retailers

have enjoyed significant double-digit growth, but in the

past twelve months, growth rates have fallen. While the

total online market for technical consumer goods in China

grew by 8%, the major domestic appliances and consumer

electronics sectors experienced their first negative rates

in the online channel. Despite the share of e-commerce

reaching another high of 36% of the turnover, slowing

growth created a plateau effect. Chinese retailers have

reacted with partnerships and mergers with traditional

retailers.

CHINA’S AUDIO MARKET

DRIVES GLOBAL SALES

Between January and June 2019,

GfK recorded total sales of €7.9bn

for the global audio devices market,

excluding North America. Largest

contributors are the CIS countries

with a 41% increase, and China -

up 38%. In-ear headphones saw a

steady sales value growth of 55% in

the first half of this year, accounting

for sales volume of nearly €3bn

for 70% of the total headphone

turnover. China is by far the largest

market, followed by the Western

European and Developed Asian

countries.

PC MARKET BUOYED

BY CHINESE SALES

The demand for mobile PCs

declined by 5% in units in the

first half year of 2019. Only the

Chinese market managed to grow

(+2% in unit terms), while Western

Europe and APAC (excluding

China) declined by 6% in unit sales.

However, due to the importance of

performance and lifestyle/premium

for the consumers, reflected in

higher price points, the market for

notebooks increased by 1% to reach

nearly €18bn. China’s increase of

7% contributed the most to that

growth, while Western Europe fell

by 1%.

MDA SALES WEAK

IN CHINA

Looking at the regions, in the first

half of 2019, the MDA market

experienced a recovery in Brazil

(+13%) and a strong uptake in

India (+10%). Europe remained

on a growth track contributing to

the biggest part of absolute Euro

growth. However, a 6.2% decline in

China was a major reason for the

overall market slowdown. As China

is such a large market, the other

regions have struggled to offset its

declines in market value. Therefore,

looking at full year results in 2019,

it is clear that market performance

will depend on the fluctuating

Chinese market and its trade

tensions with the US.

A more recent and substantial

trend is steam-supported

appliances which generate multiple

use cases, from improved drying

in dishwashers to fewer creases

in laundry, to healthier cooking.

Globally, steam-assisted products

jumped to a growth rate of 41%

in the first half of 2019. Currently

China and India are embracing

this trend, which promises future

growth.

Smart appliances are usually

equated with the benefit of

simplification. All regions reveal

strong growth in sales of smart

appliances, with the one exception –

China. Looking at the global picture

excluding China, smart appliances

grew by 18% in turnover.

THE TV MARKET

Looking at the first half of 2019

on a regional level, China, with

total sales of close to €8.5bn is the

largest market, closely followed by

Western Europe. However, sales

in China, the former global growth

engine, declined by 12% yearon-year

in the first half. The ratio

between online and offline sales in

China in the first half of 2019 was at

almost 50/50

490

480

470

460

450

440

430

420

410

400

390

380

372.19

370

360

350

340

330 330.78

372.19

364.66

344.98

377.69

352.62

378.48

Turnover Development for Technical Consumer Goods

China Q2 2019 - CNY bn

378.48

405.41

400.56

436.92

397.23

446.10

437.63

481.16

446.86

382.60

393.16

453.10

402.87

403.09

385.74

428.98

389.72

408.63

KEY

FIGURES

€7.9bn

for the global audio devices

market, excluding North

America

55%

In-ear headphones saw a

steady sales value growth

of 55%

320

Q1 2013 Q2 2013 Q2 2013 Q4 2013 Q1 2014 Q2 2014 Q2 2014 Q4 2014 Q1 2015 Q2 2015 Q2 2015 Q4 2015 Q1 2016 Q2 2016 Q2 2016 Q4 2016 Q1 2017 Q2 2017 Q2 2017 Q4 2017 Q1 2018 Q2 2018 Q2 2018 Q4 2018 Q1 2019 Q2 2019

Source GfK

www.ifa-international.org IFA International • Monday 9 September 2019

51

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