The kitchen and bathroom appliance industry faces similarly grim prospects, leaving many businesses perplexed and troubled. However, by taking necessary measures to transform and achieve success, these companies will be the first to emerge from the crisis.

Off to a Rough Start: Kitchen Appliance Manufacturers Seek Transformation

The kitchen appliance market faced an unfavorable start in 2012. Data from China Market Monitor indicates that the market size for kitchen appliances—primarily range hoods, gas stoves, and disinfection cabinets—declined in 2011. Specifically, range hood sales dropped by 5.3%, gas stoves by 4.3%, and disinfection cabinets by 11.9%. As kitchen appliance demand is heavily influenced by real estate regulation policies, with no significant easing of these policies in sight, consumers have adopted a wait-and-see attitude, both impacting consumer demand for kitchen appliances. Many kitchen appliance manufacturers reported a decline in market sales.

Amidst the overall contraction of the domestic kitchen appliance market, profit-driven pressures have prompted an increasing number of companies to shift toward the high-end segment, hoping to boost profits by enhancing brand premium pricing power. Fangtai, which has maintained leadership in the high-end range hood market since 2008, achieved a 20% increase in overall performance. The company continues to focus on the high-end kitchen appliance sector, proposing a “triple-core” driving system: enterprise technology-driven, consumer demand-driven, and national policy-driven. In addition to introducing the premium kitchen appliance brand ‘Dize’ through a joint venture with Spain's Fagor Group earlier this year, Robam has also strengthened the high-end positioning of its own “Robam” brand by constructing a kitchen industrial park.

Vanward plans to launch a series of smart products in collaboration with design maestro Kitaro. According to Li Tao, head of Vanward's brand management department, the company's share of products priced above 2,000 yuan continues to expand, with high-end smart products now accounting for 10%-15% of total sales. Wanhe is also pursuing smart solutions, gradually evolving toward providing consumers with innovative home water heating concepts. Haier, in addition to enhancing the Casarte brand image through nationwide exhibitions, has acquired the top New Zealand kitchen appliance brand Fisher & Paykel, strengthening its presence in the high-end kitchen appliance market.