The high-end trend of the electric water storage water heater market in 2016 is obvious

Driven by favorable factors such as real estate boom and product structure optimization in 2016, the market size of electric water heaters continued to grow and the growth rate increased. Aowei Cloud Network (AVC) pushed the total data to show that in 2016, the retail sales of electric water heaters reached 32.46 billion yuan, and the retail volume reached 24.724 million units, an increase of 13.1% and 10.5% respectively. In terms of market, the online market retail sales amounted to 5.78 billion yuan, a year-on-year increase of 66.2%, the retail volume was 5.709 million units, an increase of 58%; the offline market retail sales reached 26.85 billion yuan, an increase of 5.9%. The retail volume was 19.051 million units, an increase of 1.4% year-on-year. From the perspective of the market share of the entire retail channel, the online market share in 2016 reached 17.7%, an increase of 5.6 percentage points from 2015, and the online market is still growing rapidly.

Source: Avi Cloud (AVC)

From the point of view of brand performance, in 2016, as the major brands accelerated the iterative upgrade of products, the competition in the industry became more intense. The advantages of the top three brands in the market continued to expand, gradually occupying a monopoly position, while other brands were caught in a long tail. According to the total data of Avi Cloud (AVC), from the perspective of retail sales, the retail sales of A.0. Smith, Haier and Midea accounted for 77.9% of the total retail sales, compared with 2.3 in 2015. Percentage points, brand concentration is further enhanced.

Source: Avi Cloud (AVC)

Healthy bathing into a hot spot in the market, 60-80L products become mainstream

From the new products launched by major brands in 2016, Haier launched the A3 and A6 series with the second generation of clean water, except for the sales of sediment, residual chlorine and bacteria. The US launched the EQ1 series and GQ2 series to sell the 6D live water purification. AO Smith's X10 series is mainly for the replacement of magnesium rods, liner cleaning technology and other selling points; Wanjiale's HA8A fresh water series is the main selling point for nano silver antibacterial liner..... Obviously, products from major brands come Look, health bath has become a hot spot in the market, and from the price point of view, these products are priced at more than 3000+.

Source: Avi Cloud (AVC)

From the perspective of brand product layout, foreign brands dominate the high-end market and continue to consolidate the advantages of the primary and secondary markets. The proportion of products with a price above 3,000 yuan has increased significantly. The domestic brands continue to target the low-end market, accelerate the penetration into the third, fourth and fifth-tier markets, and drive the share growth. The low-end market below 3,000 yuan has obvious advantages in domestic brands. However, it is worth mentioning that domestic brands are actively infiltrating into the high-end market through the upgrading of product structure. Aowei Cloud Network (AVC) pushed the total data to show that in 2016, the retail sales of 3000+ products reached 30.9%, an increase of 3.1%. In terms of products, the 60-79L products in the offline market have become the absolute mainstream, and the proportion of retail sales has increased year by year. Aowei Cloud Network (AVC) data show that the retail share of 60-79L electric water storage water heater increased from 43.9% in 2015 to 48.2% in 2016. In terms of price segments and liters, in the offline market, the retail sales of products below 60L (excluding 60L) decreased significantly, compared with 5% in 2015, while retail sales of large-capacity products continued to grow. The retail sales share of 80-100L increased by 0.7% year-on-year. Among the 60-79L products, the products of 1200-2999 yuan are the best sellers.

Source: Avi Cloud (AVC)

From the perspective of the online market, in order to cope with the slowdown in traffic growth, to make up for the gap in the decline in traffic dividends, and to increase the unit price of passengers has become an important means for maintaining the growth rate of GMV for major e-commerce platforms. Since 2015, the e-commerce platform has begun to strengthen product management and control, clearing off multiple cottages and low-quality brands, enhancing their image, bringing product structure upgrades and price distribution to a high level. Aowei Cloud Network (AVC) data shows that in 2016, the retail sales of products with an e-commerce platform price below 800 yuan fell by 4.4%, while the retail sales of products with a price of 800-1199 yuan increased by 0.8%. The retail sales share of 1200-1999 yuan fell by 1.1%, while the retail sales of products with a price of 2000-2999 yuan increased by 3.2%, and the retail sales of products with a price of 3000-3999 yuan fell by 0.2%. The retail sales of products with a price above 4,000 yuan increased by 1.7%.

Real estate is booming to stimulate the growth of the primary market, and urbanization is good for the three markets.

From the perspective of the whole market, the high-level real estate transactions in the first-tier cities in 2016 have generated a large number of buying and selling needs. The tertiary market has benefited from the policies of urbanization and shantytown transformation, and the scale has expanded; the rural market has been hollowed out and the population has been drained. Restricted, growth is relatively slow, and the proportion of scale has declined. Specifically, Avi Cloud (AVC) data shows that the proportion of retail sales in the primary market reached 44.8%, an increase of 0.4% year-on-year, and the retail sales in the secondary market accounted for 27%, down 0.6% year-on-year. Retail sales in the tertiary market accounted for 13.9%, up 0.7% year-on-year, and the rural market accounted for 14.2%, down 0.5% year-on-year.

Source: Avi Cloud (AVC)

According to the channels at all levels, the big chain maintained steady growth in all levels of the market, including 4% in the primary market; the department store channel was eye-catching in the primary and tertiary markets, up 16% year-on-year. 8%, in the secondary market, it fell by 5% year-on-year; the market performance of the second and third-tier markets was eye-catching, with a growth of 67% in the third-tier market. From a regional perspective, Aowei Cloud Network (AVC) data shows that in the offline market, the North China, East China, and Southwest markets have seen significant growth, while the Northwest, Northeast, and Central South markets have experienced varying degrees of decline. In terms of provinces and cities, Yunnan, Inner Mongolia, Beijing, Shandong, and Guizhou ranked among the top five, with an increase of more than 10%, with the Yunnan market increasing by as much as 24.7%.

For the development trend in 2017, from the policy perspective, the electric water heater market is currently in the policy window, the ten provinces and cities announced the implementation plan of coal to gas, high financial subsidies to promote heat promotion; from the perspective of terminal needs, new urbanization More favorable to heat-burning products, real estate transactions are entering the era of stocks, replacement demand will gradually dominate; from the perspective of manufacturing costs and competitive advantages, upstream cost pressure is positively transmitted to the terminal, electric heating products bargaining power is not as good as competing products, will face from gas Powerful impact of competing products such as water heaters , gas fireplaces , and air energy water heaters .

From the perspective of the real estate market, the hot market in 2016 caused the stocks in major cities to drop rapidly. The inventory level is close to the lowest value. The real estate developers are not eager to cut prices, and the sales and control ratios of major cities are high. In a situation of short supply, the real estate market has cooled down in 2017, but there will be no cliff-like decline, and the overall market will remain stable, which will still play a supporting role in the electric heating market.

Source: Avi Cloud (AVC)

On the whole, it is expected that the electric heating market will continue to maintain the trend of two-line growth in 2017, but with the climax of real estate transactions, the impact of the expansion of secondary replacement sales, electric water heaters will face more from gas water heaters and air energy water heaters. With the alternative competition of wall-hung boiler products, the growth rate of both lines will slow down, especially the offline market has limited growth, mainly relying on online driving. Aowei Cloud Network (AVC) expects the retail sales of electric water storage water heaters in 2017 to be approximately 34.68 billion yuan, a year-on-year increase of 6.3%. The retail volume is approximately 26.292 million units, up 6.2% year-on-year. Specifically, online retail sales are expected to reach 7.22 billion yuan, up 24.9% year-on-year, and retail sales will reach 6.964 million units, up 22% year-on-year. The offline retail sales will reach 27.46 billion yuan, a year-on-year increase of 2.3%, and the retail volume will reach 19.328 million units, an increase of 1.6%. Among them, the proportion of online retail sales will reach 20.8%, an increase of 3.1%.

Source: Avi Cloud (AVC)

From the product point of view, temperature-related functions are the focus of consumers' attention, and the heat preservation effect, heating rate, and thermostat effect are among the highest. Therefore, the competitive hotspots of electric heating products in 2017 will focus on three areas of health, rapid heat and intelligence. .