Industry Analysis & Industry Trends
In the five years to 2011, industry revenue is expected to increase with an annualized rate of 13.2%. This strong growth in recent years has been driven by higher average annual income levels across China, increased numbers of chain stores, greater retail power over suppliers, a constant range of new products in the market, and strong and consistent assistance from the government.
Industry profitability is expected to average 10.2% of industry revenue in 2011. Profit levels vary significantly among different product segments, from around 6% for digital appliances, up to 14.5% for some kitchen and bathroom appliances. Increased industry competition in recent years has resulted in profit declines as companies reduce prices to maintain sales and increase market share.... purchase to read more
Industry Report - Industry Analysis Chapter
In the five years to 2011, increases in personal disposable incomes, especially in urban areas, greatly stimulated the development of the Household Electrical Appliance Retailers industry in China. Household electrical appliances are consumer goods with relatively high demand elasticity. That is, when consumers gain greater disposable income, demand for such products will increase significantly.
Chain store operations have also accelerated the development of this industry. Many large retailers have adopted chain store operations, successfully building their brand names and extending their store networks to become leading retailers in China. Chain store operations also significantly increased the level of industry concentration in recent years... purchase to read more