EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
China is a global powerhouse for consumer electronics and home appliances. As the ‘world’s factory’, China has massive electronic manufacturing and exporting capability across a wide range of electronic products including smartphones, computers, televisions, consumer appliances and electronic components.
In brief
- The growth of the consumer electronics and home appliances (CEH) market is primarily fueled by macro-economic as well as technological advancements.
- Trends in 5G, IoT, smart devices, AI, personalization, and sustainability are transforming the consumer electronics industry in China.
- As Chinese consumer electric (CE) products continue to exhibit strong demand globally, there remains huge opportunity for growth. To achieve the same, they undertook a range of strategic initiatives including collaboration with local vendors, exploring e-commerce channels in local countries, acquiring niche companies to expand their presence, making strategic product enhancements to fit the specific customer base, and more.
China consumer electronics and home appliances market overview
Factors nurturing the growth
The growth of the CEH market is primarily fueled by macro-economic as well as technological advancements. The growing preference for online channels is providing customers with enhanced convenience and a broader product choice. Additionally, the surge in disposable incomes is leading to increased spending on high-tech devices. The rapid evolution of products integrated with AI, Internet of Things (IoT) and 5G is captivating consumers attention.
Major trends in the market
The consumer electronics industry in China is undergoing a transformative phase, marked by several notable trends. Trends in 5G, IoT, smart devices, AI, personalization, and sustainability are transforming the industry, supported by the demand for new innovative products from Chinese consumers.
Key trends in Chinese consumer electronics market
Download Market trends report on China consumer electronics and appliances industry
Global CEH market opportunity
To gain a recognizable position swiftly, Chinese brands continue to customize their product strategies based on the specific country and segment in which they operate. Leading smartphone manufacturers leverage competitive technological features and efficient local distribution networks to gain a dominant market position in the country they aim to expand operations. To build consumer trust and increase product penetration, Chinese brands are also adjusting customer-oriented features such as extending the smart fridges warranty from 10 to 25 years in Europe.
Global opportunity for China consumer electronics and home appliances market
CEH market segmentation
As each CEH market segment has its own characteristics and exhibits varied market dynamics and growth potential, understanding the key growth drivers and factors driving them are crucial. Even the growth patterns of each segment are distinct in nature which would narrate a unique growth story.
Industry best practices
As Chinese CE products continue to exhibit strong demand globally, there remains huge opportunity for growth. It is of vital importance to understand how successfully Chinese companies overcame the domestic growth dynamics and established their local presence before exploring their potential for scaling the operations globally. To achieve the same, they undertook a range of strategic initiatives including collaboration with local vendors, exploring e-commerce channels in local countries, acquiring niche companies to expand their presence, making strategic product enhancements to fit the specific customer base and more. Their demonstrated growth trajectory could inspire emerging companies with aims to grow globally.
From domestic brand building to localization lead home appliance companies to go global
EY solutions
EY provides various professional services with rich industry experience & solutions in assisting enterprises in realizing their internationalization strategies, including:
- Tax solutions for overseas investment
- Tax efficient holding and financing structure
- Global human resource (HR) regulatory and compliance
- Customer data protection and integrated channel operation
Thanks to Megha Arora and Neha Goel from EY Knowledge Team for their contributions to this article.
How EY can Help
-
Our indirect tax professionals can help your business identify risk areas and sustainable planning opportunities throughout the tax life cycle. Learn more.
Read more -
Our tax team can help you develop an effective operating model and transfer pricing policies that help your business achieve its potential. Learn more.
Read more -
Our HR Transformation team can help transform your Human Resources team from HR function to human value activator. Learn more.
Read more
Summary
The global consumer technology industry is accelerating its development, and Chinese brands have entered a comprehensive stage of globalization from going global. By accelerating localized manufacturing and strengthening local research and development investment, Chinese brands and innovations will continue to serve global consumers in a new chapter on the international stage.