consumer electronics | daxue consulting

+86 (21) 5386 0380www.daxueconsulting.com

FOR MORE INFORMATION ON THE INDUSTRY FEATURED IN THIS REPORT, PLEASE CONTACT [email protected]

© 2015 DAXUE CONSULTINGALL RIGHTS RESERVED

CONSUMER ELECTRONICS

IN CHINA

DECEMBER, 2015



Introduction

1. China’s Consumer Electronics Market Growth

2. Global Brands In China’s Market

3. The Revolution Of Distribution Channels

4. Key Highlights

Table of Contents



Introduction

This report is aimed at introducing the present

China consumer electronics market through

the examples of some famous manufacturers

in this field. Highlighting the point of view that

a comprehensive market analysis of consumer

electronics in China is of priority to the whole

process of market entry.



It is quite unique that policies and regulations that

the government promulgated play a critical role

in the development of the consumer electronics

market in China. This market rose to prominence

after the liberalization of the economy under

the national strategic policy of accelerating the

“informatisation” of its industrial development.As

of 2011, China is the world’s largest market for

personal computers.

Since China became the largest consumer

electronic market instead of US, it is reported

that approximately 1/3 of global consumer

electronic sales happen in China.

And in 2013, the Chinese government issued 4G

licenses to three major Chinese telecom operators,

namely China Mobile, Chine Telecom and China

Unicom, marking the beginning of a new era in

China’s high-speed mobile network.

This significant move had brought rocketing retail

volume sales growth of 4G smartphones, so that

many manufacturers accelerated the speed with

which they launched new 4G smartphones in order

to grab the crucial opportunities.

• CHINA’S CONSUMER ELECTRONICS MARKET GROWTH



Meanwhile, retail prices of 3G smartphones

declined due to the numerous launches of 4G

smartphones, which also stimulated retail volume

sales of total smartphones, as 3G smartphones

became more affordable. The issuance of 4G

licenses continues affecting the tendency of

related industries and keeps the potential of

the smartphone market in China.

• CHINA’S CONSUMER ELECTRONICS MARKET GROWTH

China has become the world’s largest consumer electronic market.



Sony and Panasonic are two famous foreign

manufactures that have already entered the

market in China, but they have since become

much more insignificant. Statistics show that

their market share only reach 30% of Samsung

in China in 2014. During the period in 2013 that

Chinas economy had endured deceleration, the

consumer electronics industry was inflicted quite

heavy loss, except for tablets, smartphones and

LCD TVs. However, the market segmentation of

both enterprises put great emphasis on those

products whose retail volume growth continued

decreasing because of the impact of the macro-

atmosphere. The failure of PSV was just a start of

Sony’s depression. Though it was know that Sony

is excellent at innovation of technology and new

products, it had to choose to give up expansion

in Chinas market. And Panasonic has stopped

producing and selling TVs for the Chinese market,

according to reports from Japan. Panasonic is

reportedly also reviewing the future of its TV

business in the US market.

• GLOBAL BRANDS IN CHINA’S MARKET



Despite the depression of the shares of traditional

electronic products, the dynamic growth of

tablets and smartphones was mainly driven

by the continuous shift from feature phones to

smartphones, as well as product upgrades from

existing smartphone consumers.

The accelerating growth of LCD TVs in 2013 was

boosted by the closure of the policy of providing

subsidies for energy-efficient products. This

policy went into effect in mid-2012 and ended in

mid-2013, leading many consumers to upgrade

their televisions in the first half of 2013.

• GLOBAL BRANDS IN CHINA’S MARKET

Although China’s economic slowdownin 2015, overall consumer electronics continued to grow.



Nowadays, in China, online selling is so popular

that many manufacturers of electronics choose

to sell products on JD.com or Tmall etc., which

contributes to the diversity of the sales channel

and avoids many problems like establishing an

outlet in a rural place. Despite the relatively small

base, continuously rising disposable incomes in

rural areas, together with increasing education

and interest in consumer electronic products

has stimulated demand and continued to drive

volume sales in rural areas. Meanwhile, the

expansion and penetration of retailers such as

Suning and Gome into the rural areas has also

played an important role to boost volume sales in

rural areas. However, urban sales still account for the

majority of volume sales of consumer electronics

products thanks to the higher acceptance of

innovative technologies and disposable income

levels in urban areas.

• THE REVOLUTION OF DISTRIBUTION CHANNELS



We believe that consumer electronics market

in China is optimistic but also risky. And those

who can always survive the crisis are certain to

focus on and seek chances from the policies that

governments issued.

In addition, with the development of online selling,

marketing strategies should be emphasized on

expanding the distribution channels. According

to the whole article, all the results were concluded

from related market researches and just present

a small part of this market. If you would like to

enter this field, you may require further research

on the consumer electronics market in China.

• THE REVOLUTION OF DISTRIBUTION CHANNELS

Specialist retailers remains as core channel despite huge threat from Internet retailers.



• KEY HIGHLIGHTS

China 2G, 3G and 4G enabled mobile devices market in 2014

2G13.4%

3G48.8%

4G37.8%



• KEY HIGHLIGHTS

Top 5 bestselling smartphone makers in China in Q1 2015

4G37.8%XIAOMI

14%HUAWEI

11%APPLE

11%SAMSUNG

10%VIVO

9%



• KEY HIGHLIGHTS

Domestic and international laptop brands in China

201340.7%

201359.3%

Domestic International Domestic International

201444.2%

201455.8%



ABOUT USDaxue Consulting is a market research company dedicated to providing the best specially tailored, high-quality, customer-specific data in one of the most challenging markets in the world; China.We leverage our unique network of university organizations and professors, business associates, industry experts and foreign and local consultants to find the information you need efficiently, reliably and in a manner that addresses your specific needs. We excel because we’re reliable, resourceful and flexible, everything that the Chinese market demands.

BEIJING, CHINA Room 726, Building 1, 40 Dong Zhong Road,

Dongcheng District

SHANGHAI, CHINA Room 1701, Building 1, 525 Fangxie Road,

Huangpu District

HONG KONG, HONG KONG ISLAND 13 Queen’s Road Central, Floor 23,

Central District

PARIS, FRANCEDaxue Consulting, 45 Rue de Courcelles,

75008 Paris

http://www.daxueconsulting.com



If you like what you see, follow us!

Yes, these are clickable buttons!

https://www.linkedin.com/company/daxue-consulting

http://www.facebook.com/daxueconsulting

http://www.twitter.com/daxueconsulting

http://www.instagram.com/daxueconsulting

http://daxueconsulting.com.cn/?page_id=3327

http://weibo.com/daxueresearch

© 2015 DAXUE CONSULTINGALL RIGHTS RESERVED

CONTACT USHONG KONG | BEIJING | SHANGHAI

www.daxueconsulting.com

[email protected]

+86 (21) 5386 0380

+86 134 6658 3902

This report is the property of DaxueConsulting. No copyrighted materials may be reproduced, redistributed, or transferred without prior consent from Daxue Consulting. For more information on the app market in China, please contact us.

consumer electronics | daxue consulting

Technology