Water heater market is flat

Water heater market is flat

In the first quarter of 2015, there was no surprise in the water heater market. Sales volume rose slightly and sales decreased. However, in the plain start, the mainstream water heater companies are actively gaining momentum in product innovation, channel expansion and other aspects, the water heater market is brewing a change.

Flat line on the rapid growth

According to the Ove Cloud Network monitoring data, China's overall water heater market sales in the first quarter of 2015 was 1.73 million units, an increase of 1.5% over the same period in 2014; sales were 2.93 billion yuan, a year-on-year decrease of 3.6%.

In the first quarter, the overall water heater market was in a downturn. This was seen by Song Chunfeng, general manager of Aowei Yunwang’s kitchen appliances division, which was mainly affected by the downturn in the real estate market and the demand for the previous policy overdraft market. The negative growth in sales was due to a negative year-on-year growth. The secondary market tends to be saturated, and the main companies and channels adopt the strategy of placing price premiums.

If you want to find out the highlights of the water heater market in the first quarter, then the highlight is the rapid growth of the online market.

Owei Cloud Network monitoring data shows that in the first quarter, the sales of water heaters on the e-commerce platform reached 690,000 units, an increase of 82% year-on-year, and sales of 850 million yuan, an increase of 66%. Song Chunfeng expects that the market for water heaters on the online market in the second quarter will continue to grow substantially, and the growth rate will remain above 70%.

Compared to the online market, the performance of the water heater offline is somewhat unsatisfactory. However, this situation will not last long. Song Chunfeng believes that as the policy overdraft effect gradually subsides, plus the recent introduction of the new property market in the country, the situation in the second half of the water heater market will reverse.

Product innovation: energy efficiency is a major trend

In the case of sluggish growth in the overall market, mainstream water heater companies have accelerated the pace of transformation driven by scale-driven innovation. In terms of product innovation, they have focused more on research and development around consumer demand, from intelligence, comfort, security, energy conservation, convenience, and many other aspects. To enhance the user experience. This point, in the water heater companies released new products and push the star product has a very obvious embodiment.

At the 2015 China Household Appliances Expo, Haier exhibited an ultra-large-capacity electric water heater. New technologies and features such as gradient heating technology, large-scale hot water output, Wi-Fi remote control, and intelligent monitoring enabled the company to accumulate a large number of products at the exhibition. Popularity. The admiration of the audience is that the water heater's hot water output rate reaches 90%, and the 24-hour inherent energy consumption coefficient is 0.5, far exceeding the first-level energy efficiency standard.

Midea uses double-brick water heater F400-50N1 (HEY), dual-core and four-heater tubes to heat the water in layers, greatly increasing the heating efficiency and the output rate of hot water. The United States excellent spring series of air energy water heaters, more than 70% energy than electric water heaters.

AO Smith electric water heater EWH-E9W, with intelligent maintenance tips and liner self-service cleaning function, "MRI mobile phone intelligent remote interactive system", allows users to understand the status of the water heater through the smart terminal anytime, anywhere, and remote control of the water heater.

Linnean enjoy series of forced-balanced gas water heaters have also been welcomed by the market since it was launched: fully enclosed structural design, precise temperature control technology, user-friendly operating system, and ECO energy-saving mode design that can save energy up to 20% from safety , comfort, convenience, energy saving and many other aspects to enhance the use of experience.

Seeing from the mainstream trend, more and more applications of intelligent technology are being applied. High efficiency and energy saving are still the major trends in the development of water heaters. On April 22, the China Green Water Heater Summit hosted by China National Grid will be held in Beijing. By then, mainstream companies will focus on the theme of energy conservation and environmental protection, and conduct more in-depth discussions on the new technologies and trends of water heaters.

Channel expansion: e-commerce and 34 markets

Expanding channels, this is another important move taken by mainstream water heater companies in parallel with product innovation.

In view of the rapid growth of water heaters in e-commerce channels, each water heater company has formulated a corresponding e-commerce development strategy. The relevant person in charge of AO Smith made it clear that he is very concerned about e-commerce channels, and has strengthened "closer cooperation" with several major e-commerce platforms and "has great expectations" for the growth of e-commerce channels.

Three or four markets, this is another "fat" that water heater companies are eyeing. Song Chunfeng also believes that the ups and downs of the overall pattern of changes in the water heater industry in the future lie in the 34 markets.

In fact, the United States relies on its huge flagship store system and quickly penetrates into the third and fourth-tier markets. Currently, U.S. flagship stores have achieved over 70% coverage in the 3rd and 4th markets. AO Smith, Wanjiale, etc. are also committed to sinking to the 3rd and 4th markets.

However, Song Chunfeng pointed out that how a water heater company can bring the prices and services of the first and second tier markets to the 3rd and 4th tiers while maintaining the same market share in both tier one and tier two markets. This is a test of the overall strength of the company.

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