Electrical Equipment / Components & Telecoms

Under the influence of such adverse factors as the continuing crisis in Ukraine, high inflation in the world and the pressure on inventories in Europe and the United States, the export of Chinese household appliances declined slightly year on year. According to customs data, from January to October, the cumulative export value of China's household appliances (white goods) was 95.49 billion US dollars, down 2.3% year on year. It is expected that the market will recover at the end of the first quarter of next year.

Steady progress in emerging export markets

At present, Asia is still the largest export market of China's household appliances. According to customs data, from January to October, China's accumulated export of household appliances to Asia was 34.73 billion US dollars, slowing down to 5.2%. "This is mainly due to the slowdown of China's export of household appliances to Japan, South Korea and Thailand, the top three exporters." The relevant person in charge of the Household Appliance Branch of China Chamber of Commerce for Import and Export of Mechanical and Electrical Products said.

Under the influence of factors such as high inflation in European countries has not eased and the energy crisis continues to ferment, local market demand and purchasing power are declining, which also has an impact on China's export of household appliances to Europe. According to customs data, from January to October, China's accumulated export of household appliances to Europe was 24.41 billion US dollars, down 11.3% year on year.

In addition, in the United States, the growth rate of China's exports of home appliances to North America has narrowed since this year due to factors such as rising inflation and high inventories. According to customs data, from January to October, China's total export of home appliances to North America was 23.36 billion US dollars, with a sharp drop of nearly 35 percentage points compared with the same period last year.

Different from traditional markets, China's emerging home appliance export markets have made steady progress. Data shows that from January to October, China's export of household appliances to the Arab League amounted to 6.58 billion US dollars, up 11.2% year on year. At the same time, thanks to the continued release of dividends from the implementation of RCEP, China's export of household appliances to ASEAN and Oceania continued to maintain a high growth rate, with outstanding export performance. From January to October, China's total export of household appliances to ASEAN was 10.13 billion US dollars, up 17.1% year on year, showing a steady growth trend; China's export of household appliances to Oceania totaled 2.77 billion US dollars, up 19.0% year on year.

Export of different products fluctuated

Among the main categories of household appliances exported, the export volume of heaters in the first 10 months increased significantly, showing a bright performance. According to customs data, from January to October, China exported more than 46 million heaters to Europe, an increase of 14.7%; China's export of household appliance parts also achieved a simultaneous increase in volume. From January to October, the cumulative export amount of household appliance parts monitored by the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products increased by 14.8% year on year.

In contrast, since this year, the export of large household appliances and kitchen and bathroom household appliances has been sluggish. According to statistics, from January to October, China's cumulative exports of air conditioners fell 22.0% year on year, and the cumulative exports of refrigerators and freezers fell 41.2% and 33.2% year on year respectively.

In this regard, the above person in charge believed that the decline of consumer demand caused by high inflation and overstock in major global markets was the main reason for the decline of China's electricity export data, and the high export base last year was also one of the reasons. The overall export situation of kitchen and bathroom appliances is relatively low, which is due to the fact that after the restrictions on epidemic situation were released in overseas markets, people returned to offline work, increased outdoor activities, the housing economic dividend subsided, and the demand for kitchen and bathroom appliances declined. However, as the energy crisis has led to an increase in the demand for replacing gas with electricity, the export volume of induction cookers in kitchen and bathroom appliances has grown rapidly.

Speaking of the future export trend of China's household appliances, the above responsible person believes that the export downturn in the fourth quarter of this year may continue the previous three quarters. Although the high inflation and high inventory pressure faced by the world have begun to show signs of easing, the inventory of major markets still needs to be digested for at least 3 to 4 months. Therefore, it is expected that by the end of the first quarter of 2023, China's home appliance export market may be expected to recover.