Kitchen, bathroom appliances businesses yearn for a rebound
China's kitchen and bathroom appliances market faces short-term pressures such as price hikes in the supply chain and demand hit by the epidemic.
But the market will rebound in the long term with upgrade demands for devices like dishwashers and smart toilets, industry officials said.
China's home appliance market revenue is forecast to be less than 700 billion yuan (US$109.4 billion) in 2021, down from 734.7 billion yuan in 2020.
The market is facing pressures from decreased demand because of coronavirus pandemic and China's tightening policy on house market, according to researcher All View Cloud.
The industry also faces challenges from short-term electricity supply disruption in some regions and price hikes on materials and metal in the supply chain, according to AVC.
"It's a tough time for the whole industry. But the demand never disappears as people always pursue a better life," said Zhang Dongli, director of the China National Hardware Association.
The demand for technology upgrades covering wireless connection and artificial intelligence is still growing, industry officials said.
Firms like Fotile and Robam are increasing investment in cooking devices and systems, covering oil stain removal and smart recipes.
Haier expected surging demand for full-house device integration with wireless connection and an AI-featured center.
China's home appliance market will rebound to over 1 trillion yuan within several years, AVC said.
The kitchen and bathroom market is one of the fast growing sectors with revenue expected to pass 100 billion yuan, according to AVC.