Small kitchen appliances, represented by air fryers, have been advancing rapidly in the past few years, creating many industry myths. From March to May 2022, among the online sales of small kitchen appliances, air fryers increased by 200% year-on-year, and electric steamers, fruit and vegetable washing machines, and electric food cooking sticks all increased by more than 80% year-on-year. However, after the rapid growth, small appliances are being “abandoned” by consumers. Since the beginning of this year, manufacturers’ sales and revenue have both declined.

Is the “falling out of favor” of small appliances because the market is saturated? What adjustments has the industry made to this? Where is the next outlet for small appliances? The “News with Views” of China National Radio and Television Headquarters specially planned “Industry Insights”. This issue focuses on the small appliance industry, and talks with Yuan Qingling, executive vice president of the Jiangsu Home Appliance Association, Guo Meide, president of a big data technology company, and Dou Huaideng, general manager of a domestic electrical sales company.

Data shows that even with the rapid increase in sales in the spring, in 2022, the national retail sales of small kitchen appliances will be 52.03 billion yuan, a year-on-year decrease of 6.7%; the retail volume will be 220.49 million units, a year-on-year decrease of 12.7%. The previous three years were the golden age of rapid growth in my country’s small home appliance industry.
In response to the current situation of the industry where growth suddenly weakened after rapid development, Guo Meide, president of a big data technology company, acknowledged this huge gap and pointed out that the growth pressure in the small home appliance industry is the “biggest one” in the home appliance market. But at the same time, he also rationally stated: “(This year) the sales of small home appliances are similar to those in 2019. Everyone says that ‘the current situation is not good’ is a relative concept.”
So, why is this change happening now? What is the influencing mechanism behind it? Guo Meide further analyzed the social background, changes in the nature of the market, and the commodity attributes of small household appliances: First, during the epidemic, more people chose to cook at home, and the demand for small kitchen appliances surged. The ownership of small household appliances was rapidly saturated, and the incremental market gradually turned to the slow-growing stock market; in addition, from the characteristics of small kitchen appliances, it is different from gas stoves and range hoods, which are just needed items. Consumers are mostly impulse buyers, which are prone to large fluctuations. Dou Huaideng, general manager of a domestic electrical sales company, also explained this change from the perspective of foreign sales, pointing out that starting from the second half of 2022, foreign consumer vouchers will be suspended, which has caused many foreign customers and foreign trade companies to adjust their inventory structure, which also has a certain impact on the interruption of the rapid development of this industry.

For the longer-term industry trend, practitioners and observers in the small home appliance industry have given many keywords, and these directions are based on insights into the characteristics of young consumers.

By comparing the needs of consumers in the “golden three years” with those in recent years, Guo Meide analyzed that consumers have shifted from impulsive consumption to rational shopping: “The time they spend on judgment will be longer, the radius of purchase will be larger, and their determination will be stronger.” In this regard, he believes that in the future, small home appliances should strive to become necessities through iterative upgrades, integrate multiple functions into more practical all-in-one machines, and innovate to explore new consumption scenarios, and comprehensively produce products with high appearance, intelligence, and convenience. Yuan Qingling, starting from the diversified consumption needs of young consumers, believes that “specialized, refined, and innovative” companies in the industry can continue to break out of new tracks and seize new opportunities brought by new consumption scenarios.

In addition, in addition to exploring new consumer needs in the domestic stock market, the vast blue ocean of overseas markets has attracted more and more attention from the industry. Dou Huaideng pointed out: “Small household appliances are a rigid demand for Europeans and Americans. Since the second half of this year, overseas consumption has clearly picked up.” Guo Meide also agreed with this point. He emphasized that domestic enterprises are currently in a serious “involution” and the rise of domestic demand may take time, but there is still a lot of room in the overseas market. Taking both internal and external factors into consideration and advancing in multiple directions, there are more possibilities for the “revival” of small household appliances in the future.