In 2017, China's property market experienced a series of regulation and baptisms such as purchase restriction, limit loan, and price limit, and gradually returned to stability. In the short run, real estate regulation is regarded as an unfavorable factor in the growth of the kitchen appliance industry. However, in the long run, the penetration of real estate decoration and urban renewal have brought huge growth space for the development of the kitchen appliance industry.
In 2017, China's real estate decoration market broke out in the fourth quarter, and it also showed a growth trend. According to Avi Cloud (AVC) real estate big data monitoring: the size of the fine decoration market in 2017 was 1.274 million sets, a year-on-year increase of 9.9%, including kitchen appliances. The product is still a high-end product with a configuration rate of over 98%.
The era of full decoration
In April 2017, the “13th Five-Year Plan for the Development of Construction Industry†of the Ministry of Housing and Urban-Rural Development proposed that, in accordance with the objectives of the “13th Five-Year Plan†of the urban and rural construction undertakings, by 2020, all new civil buildings in urban areas will meet the energy conservation standards. The urban green building accounts for 50% of the newly built buildings, the newly-built fully-renovated finished residential area reaches 30%, the newly-built fully-renovated finished residential area reaches 30%, and the green building materials application ratio reaches 40%.
China's real estate has officially entered the “full decoration†era from “fine decorationâ€. At present, the penetration rate of the full decoration market has exceeded 20%, which is 5% higher than that of 2016. More than 140 cities across the country have launched full renovation projects, only in 2017. Nearly 30 new cities have been added to the annual renovation project. At the same time, compared with 80% penetration rate in developed countries such as the United States, France, Germany, and Japan, there is still huge room for improvement in China's fully renovated housing market in the future.
With the advent of China's real estate renovation era, real estate developers have returned to their original products to pay more attention to the quality and added value of their homes. For the kitchen appliance industry, the growing market of full decoration directly drives the development of the entire kitchen appliance industry. The data shows that the cooperation rate of TOP20 housing enterprises and kitchen appliances leading brands reached nearly 70% in the first three quarters of 2017, the range hood The matching rate of kitchen appliances such as stoves and sinks is over 95%. This means that the real estate channel will become an important growth point for the kitchen appliance industry in the future.
In addition to the continuous rise of the new housing market, in the future, the “urban renewal†based on the “renovation of old buildings and the increase of stocks†in the core areas of key central cities will also become an important growth space for real estate – the era of stocks is opening. This will accelerate the pace of kitchen appliances renewal and release an objective space for the future growth of the kitchen appliance market.
Real estate developers and kitchen appliances have huge depth of cooperation
The trend of full decoration and the pursuit of quality kitchen life by consumers have made it necessary for real estate developers and kitchen electric companies to cooperate and build together. With the 80s and 90s gradually becoming the main consumer, their high pursuit of quality will directly drive the high requirements of full decoration. Space design and precision assembly play an important role in the high-end of residential buildings. From the analysis of kitchen appliance power allocation rate in the overall hardcover market, integration, intelligence and high-end are the requirements of more young people for kitchen appliances.
According to a survey by the People's Daily Online, half of consumers said that the budget for purchasing a complete set of kitchen appliances is between 5,000 and 10,000 yuan, which is basically the same as last year; the budget is more than 10,000 yuan, accounting for 22%; but the budget for consumers under 5,000 yuan is significantly reduced. In line with the high quality requirements of more consumers, the data shows that real estate developers prefer to buy first-line professional brands such as boss appliances.
The traditional cooperation mode only stops at the sales link, which is purchased by the developer and quoted and sold by the kitchen appliance company. In the era of full decoration, developers will build a collaborative and cooperative cooperation model with kitchen appliances companies, and kitchen and food leading enterprises will gradually shift from kitchen appliance manufacturers to kitchen solution providers. For example, Boss Electric is trying to deepen cooperation with developers, and advance cooperation from sales to design. With the overall concept as the guide, the design, technology and marketing departments of the two sides work together to propose a total solution and further cooperation in the subsequent marketing links. Use differentiated products and services to break sales.
The synergy between the developer and the kitchen appliance company and the deep cooperation, the effect is obvious: First, it can reflect the developer's insight and understanding of the residents' aesthetic and residential needs, and enhance the brand reputation and product recognition. Second, increase product added value, increase project premium and sales speed. Third, the cost aspect is conducive to reducing land value-added tax.
Under the general trend of consumption upgrading, the kitchen appliance industry will play an indispensable role in the hardcover of the house. How the kitchen and electric industry can deeply explore the value of products and services through in-depth cooperation with real estate developers will be an important aspect for the future development of the kitchen electric industry.
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