THE CHINESE WAY

Futuresource Consulting gives an insight into the CE market in China

The TV market in China should not be underestimated as the domestic market accounts for 20% of TVs sold worldwide, according to new data from Futuresource Consulting.

“Over 250 million smart TVs will be in use in China by the end of 2019,” said Judy Wang, Futuresource Consulting’s Business Development Manager, APAC. “China remains the world leader in terms of 4K adoption – over 80% of TV sales this year will be 4K.”

VIRTUAL REALITY
China shows strong potential as a VR market, which is forecast to account for over a third of total worldwide VR hardware sales in 2019. In 2018, over 80% of China’s VR market volume was generated by smartphone VR viewers and all-in-one headsets. China’s historic ban on games consoles, although lifted in 2015, has limited consumer adoption of the PlayStation and, therefore, limited potential sales of associated hardware.

SMART APPLIANCES
China is at the forefront of global smart appliance adoption and has the highest share of appliances with Wi-Fi connectivity in the world. Ms Wang says that 19% of all refrigeration and laundry appliances shipped in China this year will be smart.

WIRELESS SPEAKERS (including smart and portable)
China is the world’s leading market for smart speakers, as a result of local players such as Baidu, Alibaba and Xiaomi. Ms Wang says: “China is set to account for nearly 30% of worldwide smart speaker sales this year. Although China is a major market for sound bars, there are more than 12 times as many smart speakers in use as sound bars.”

IN 2018, OVER 80% OF CHINA’S VR MARKET VOLUME WAS GENERATED BY SMARTPHONE VR VIEWERS AND ALL-IN-ONE HEADSETS.

SMARTPHONE/5G
China’s smartphone market has rapidly expanded over the last ve years, however. In 2017 the market’s growth bubble burst and market saturation set in. China’s smartphone market further declined in 2018, however, it is expected to settle into a replacement- rate driven sales cycle in the next five years, maintaining between 400 million and 420 million sales per year.

Ms Wang says: “With future growth now limited, competition in the Chinese market has become fiercer. Huawei, Oppo and Vivo have gained favour over international established brands such as Samsung and Apple, with domestic brands offering premium features as prices more affordable to the local market.”

HEADPHONES
The retail value for headphones, excluding those bundled with smartphones and gaming headsets, in China is forecast to grow at an annual average of 11% through to 2023. More than one in every 10 pairs of headphones that sell this year in China will be True Wireless, says Futuresource Consulting.

GAMING ACCESSORIES
The Gaming PC Peripherals market in China is experiencing double-digit growth year-on-year, thanks to the growing influence of e-sports, streaming and a competitive, low-cost product market. Logitech G, Razer, and HyperX lead the market with a combined 45% market share of gaming headsets in China, with strong performance from local brands such as 1More and Somic.

FITNESS AND ACTIVITY
The wearable market in China will account for 26% of all global shipments in 2019. With a 5% population penetration, it’s a market with a lot of untapped potential for retailers. Ms Wang says: “By 2023, smartwatches will account for 52% of all wearable shipments in China”.


Photo: Judy Wang, Futuresource Consulting’s Business Development Manager, APAC