Press release. The Chinese Technical Consumer Goods market grew, compared to the same period last year
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1 Press release The Chinese Technical Consumer Goods market grew, compared to the same period last year Results for GfK TEMAX China for the third quarter of 20 November, 20 Alfred Zhou Tel: , GfK Market Consulting (China) Co., Ltd. Unit , China Life Tower, 16 Chao Wai Street, Chaoyang District, Beijing P.R. China Tel: Fax: Website: Beijing, November, 20 The Technical Consumer Goods (TCG) market in China reached 3.6 billion in Q3 20 an increase of.0%, compared to the same period in 20. Also, the rate of growth was higher than in the last quarter. Performances varied among the different sectors reviewed in the GfK China TEMAX report. The Telecommunications (TC) sector was ranked at the top, with a 30.0% rise. The Small and Major Domestic Appliances (SDA and MDA) sectors followed, with increases of 8.2% and 5.6%, respectively. The Consumer Electronics (CE) sector fell by 0.6%, compared to Q3 20. The Information Technology (IT) and the Office Equipment and Consumables (OE) sectors fell by 9.0% and.0%, respectively. The Photography (PH) sector decreased by 18.8%, compared to the same period in 20 a rate of decline that was higher than in Q2 20. How the sales volume of Technical Consumer Goods in China has developed 372 CNY bn Source: GfK TEMAX, China 1
2 Telecommunications: more consumers willing to purchase domestically produced middle and high-end mobile phones In Q3 20, the TC market reached billion, a 30.0% increase, compared to the same period in 20. Consumption in China s mobile phones market has changed to more middle and high-price devices. In these price brackets, domestic models were as popular as international brands. Since the pace of innovation has slowed, domestic manufacturers have caught up with international brand, and more Chinese consumers have therefore purchased domestic middle and high-end mobile phones. At the same time, the market for inferior products continued to fall, while the average price in the TC market grew. Small Domestic Appliances: the rate of growth decreased, but highend products were in demand In Q3 20, the SDA market recorded a sales value of billion up by 8.2%, compared to the same period in 20. After a long period of high-speed growth, the SDA market slowed in Q3 20, and the performance of different products varied. In the shaver category, sales were more prominent in the online channels and product structure showed high-end trend. In the air treatment equipment market, demand increased as air quality fell due to seasonal factors. In the vacuum cleaners segment, the rate of growth was smaller, compared to the same period in 20. Major Domestic Appliances: the online market maintained a highspeed growth rate, and the mid-range product technology evolution promoted sales In Q3 20, sales in the MDA market were valued at billion, an increase of 5.6%, compared to Q3 20. The growth was mainly due to the expansion of online channels. The pace of growth in the sector slowed, due to product structure adjustment which continued in the third quarter of 20. Because of high capacity in the market and more products incorporating new technology, the price performance of middle and low-end products increased. On the other hand, the high-end market was restrained. The online market continued to grow quickly, while the offline market faced challenges. Consumer Electronics: the online market performed well, the offline market experienced difficulties 2
3 The size of the CE market fell by 0.6%, compared to the same period last year, and recorded revenue of billion. Due to the rapid expansion of the online market, the Panel TVs segment increased in Q3 20, however, the offline market fell. The number of online sales promotions increased and put pressure on the offline market. Both markets saw large-scale sales promotions in Q3 20 in order to reduce stock. Despite that, the overall market demand was low. Information Technology: the sector performed poorly, but largescreen business tablets drew attention The IT market reached billion in Q3 20 a fall of 9.0%, compared to the same period in 20. The size of the IT market including PCs continued to decline in Q3 20. The upgrading of computers equipped with the XP system did not help to promote the sales of personal computers. In addition, the free upgrade to Windows 10 also decreased the demand for personal computers. One positive aspect was that Microsoft and Apple introduced new big-screen business tablet computers to counter the competition from large-screen mobile phones. Office Equipment and Consumables: the whole market remained gloomy, while the gaming market showed positive signs The OE market revenue in China reached 3.52 billion in Q3 20 a fall of.0%, compared to Q3 20. Impacted by a gloomy IT industry, the size of the OE market continued to shrink in Q2 20. However, there were some bright spots, including keyboards and mice products that belong in the gaming peripherals segment. These products did especially well in June, due to online sales promotions. Photography *: the rate of decline accelerated, and consumer demand suffered a downturn The Photography market recorded revenue of 4.75 billion in Q3 20 a fall of 18.8%, compared to Q3 20. The rate of decrease of the PH market accelerated. Low-end products suffered in a poor retail environment, while middle and high-end products increased, but not by much. Although product changes were made in the middle and high-end devices, consumers preferred to take photos with 3
4 smartphones instead of low-end products. Also, demand for high-end products did not rise. * Due to a change in digital camera reporting (camera kits are no longer split into cameras and lenses, but are reported together) data has been reworked for the Photography sector. Summary: product structure adjustment led to TCG market growth The value of sales in the Chinese TCG market rose in this quarter, compared to Q3 20. The online channel market share carried on expanding, and the mix of products sold were continually being upgraded, providing momentum for the growth of the TCG market. Summary in table format Source: GfK TEMAX China The Survey GfK TEMAX is an index developed by GfK to track the Technical Consumer Goods markets. The findings are based on surveys carried out on a regular basis by the retail panel of GfK. The retail panel comprises data from over 425,000 retail outlets worldwide. Since February 2009, GfK has also been compiling the GfK TEMAX index at international level in more than 30 countries. It is the first index that includes all of the markets for Technical Consumer Goods in different countries. All reports and press releases are available at If information from this press release or is cited, GfK TEMAX should be explicitly indicated as the source. About GfK GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than,000 market research experts combine their passion with GfK s 80 years of data science experience. This allows GfK to deliver vital global insights 4
5 matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers experiences and choices. For further information, please contact: Alfred Zhou, Tel: , Responsible under press legislation: GfK Market Consulting (China) Co., Ltd. Alfred Zhou Unit , China Life Tower, 16 Chao Wai Street, Chaoyang District, Beijing P.R. China Tel: Fax: Website: 5
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