The home appliances category increased 9 percent in value in the BrandZÔ Top 100 Most Valuable Chinese Brands 2017, following a gain 31 percent a year ago and 20 percent in 2015. Growth leveled primarily because of slower new home sales and high penetration levels for large appliances. Small appliances experienced a lift, according to the China Household Electrical Appliances Association (CHEAA).
These trends impacted the valuations of the eight home appliance brands included in the BrandZÔ China Top 100 Most Valuable Chinese Brands 2017. Two small appliance makers, Robam and Supor, increased in value 37 percent and 35 percent, respectively, placing them in the Top 10 Risers, the brands with the greatest year-on-year value appreciation. Vatti, a maker of range hoods, microwaves and other small appliances, appeared in the ranking for the first time, at Number 99.
Robam leveraged the strength in its core products – range hoods and gas stoves – to introduce new products, and the brand made the sale of built-in appliances a high priority. Supor introduced innovated rice cookers and other small appliances aimed at meeting the lifestyle interests of middle class consumers.
The valuations of large appliance makers increased more modestly or declined. These brands continued to expand in e-commerce, collaborating with key players, including Alibaba and JD.com. They also produced smart appliances to gain leadership in the Internet of Things. And to balance slower growth at home, appliance brands more aggressively looked abroad.
Midea increased in value primarily because warm weather produced strong demand for one of its key products, air conditioners. The brand has also developed smart air conditioners capable of being operated by remote control. Midea, which gained 30 percent of revenue from abroad, acquired Kuka, the German robotics company and the appliance division of Japan’s Toshiba.
Hisense also enjoyed strong air conditioner sales. And the brand collaborated with video brands, such as iQiyi, which offered a one-year free membership to Hisense TV buyers. Hisense derived 22 percent of its revenue from overseas business. It strengthened promotion in the US. TLC, a maker and marketer of consumer electronics worldwide, with a special focus on multimedia entertainment and smart TVs, remained flat in brand value because of competitive pressures.
To expand its presence in the US, Haier acquired the consumer appliances division of GE. Haier declined slightly in value, primarily because of weaker sales of large appliances in China. Gree also declined in value because of sales weakness.