Home Appliances (+20%)
In an unfavorable climate of higher interest rates and slower real estate development, home appliances focused on producing innovative smart products in an effort to shift the consumer conversation from price to performance.
Along with producing smart features, like appliances that can be controlled from mobile devices, both the manufacturers of white goods and air conditioners improved the energy efficiency of their products. Letv continued to develop smart TVs, and also expanded into content creation.
Brands developed business in lower tier cities, facilitated by an increase in ecommerce and the expansion of distribution to those areas. Haier leveraged its distribution capability in a collaboration with Alibaba in which the appliance maker provides “last mile” delivery and installation support for the ecommerce giant.
Home appliance brands also continued to export products, both under their own brands and as OEMs (Original Equipment Manufacturers) for other brands. Six appliance brands rank in the BrandZTM China Top 20 brands with the greatest percent of revenue derived from overseas.