Consumer Electronics | Daxue Consulting

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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 threemajorChinesetelecom 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

Despitethedepressionofthesharesoftraditional
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 slowdown
in 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
ruralareas.However,urbansalesstillaccountforthe
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.
Inaddition,withthedevelopmentofonlineselling,
marketing strategies should be emphasized on
expanding the distribution channels. According
tothewholearticle,alltheresultswereconcluded
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
2G
13.4%
3G
48.8%
4G
37.8%

• KEY HIGHLIGHTS
Top 5 bestselling smartphone makers in China in Q1 2015
4G
37.8%XIAOMI
14%
HUAWEI
11%
APPLE
11%
SAMSUNG
10%
VIVO
9%

• KEY HIGHLIGHTS
Domestic and international laptop brands in China
2013
40.7%
2013
59.3%
Domestic International Domestic International
2014
44.2%
2014
55.8%

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Consumer Electronics | Daxue Consulting

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