Generation Z consumption has become a new feature How can brand manufacturers seize this opportunity?

Reporter Jia Li

In recent years, the home appliance industry has been under serious pressure, especially under the impact of multiple factors such as the new crown epidemic, raw materials, real estate, etc., the consumer demand for home appliances has been suppressed, and the development of the industry needs to be broken.

On February 11, the latest data from market research institute Qianqu GKURC (Global Key User Survey and Research Center) showed that Generation Z is becoming the mainstream of home appliance consumption. Among the home appliances that The Generation Z people hope to buy, dishwashers and air fryers are in the forefront, accounting for 37.41% and 25.11% respectively.

So, how big is the Z generation home appliance consumer market, what are the potential and challenges, and how can home appliance manufacturers seize this opportunity to stimulate domestic demand?

At present, the household penetration rate of traditional home appliances is at a high level, and the overall power of user replacement is insufficient, but The consumption of Generation Z is becoming a new opportunity for the industry. A large number of innovative home appliances have also emerged, sought after by young users of Generation Z, and they have gradually become the main consumer force in the home appliance market.

Relevant data show that the Generation Z population is about 280 million people in the country, accounting for nearly 20% of the total population. In the context of 5G and the Internet, Generation Z pays more attention to the intelligence and high-end of home appliances. At the same time, they were born in the Internet era, and their shopping methods have triggered changes in home appliance channels, and short videos and live broadcasts have become popular.

In the retail report released by GfK China, 57% of the respondents "pay great attention to the appearance of the product and are willing to pay more for the 'high-value' products"; in terms of purchasing styles, 72% of the respondents consider buying complete sets of home appliances; in terms of technological innovation, there are also reports showing that cutting-edge technologies such as AI intelligent control, AI care, and AI drying technology are currently one of the main reasons influencing consumers to choose high-end washing and care products. On the shopping channel, they are more willing to buy through online shopping and live broadcasting.

So, what innovative home appliances does Gen Z want to add?

According to the "Survey on Consumption Characteristics and Consumption Trends of Generation Z" released by Qianqu GKURC, among the innovative home appliances that Generation Z hopes to add, dishwashers, air fryers, steamers, sweepers and scrubbers rank in the top five, accounting for 37.41%, 25.11%, 20.86%, 20.53% and 19.9% respectively. The Gen Z population surveyed covers more than 20 cities in China's first, second, and third tiers.

In addition, the proportion of multi-functional breakfast machines, vacuum cleaners, coffee machines, shoe washers, bread machines, steak machines, and yogurt machines is also in more than double digits, which are 18.72%, 17.54%, 15.95%, 15.62%, 14.14%, 11.34%, and 10.12%, respectively.

Ding Shaojian, chief analyst of Qianqu GKURC, told the Securities Daily reporter that the survey results present three major characteristics of the Z generation population for innovative home appliance consumption: favor lazy home appliances, healthy home appliances, and fashion lifestyle home appliances.

He said: "In the top 5 innovative home appliances that Generation Z hopes to add, the dishwasher ranks first, and the sweeper and washer rank 4th and 5th respectively; in addition, the shoe washer is also among the top ten." This fully reflects that the Generation Z population has a high demand for machines to undertake housework, and has a high acceptance of related home appliances; at the same time, the Generation Z population is very concerned about the 'health' attributes of innovative home appliances. The multi-functional breakfast machine, coffee machine, etc., have become among the top 10 who want to buy innovative home appliances, indicating that the Z generation crowd is very respectful of the fashionable and self-pleasing lifestyle, and innovative home appliances that can meet this lifestyle are also favored. ”

At the same time, home appliance services have become an area where Gen Z is more willing to consume. Suning Tesco-related research shows that booking on-site cleaning services for parents in different places during the New Year Festival has become a new choice for Generation Z. It can be seen that in the future service market, the demand of Generation Z will be greater.

At present, many home appliance manufacturers see this market demand and consumption potential, and are increasing their layout, hoping to seize this main consumption force.

Many listed home appliance companies have entered the field of emerging categories, while accelerating channel change and promoting brand rejuvenation. Gree Electric Appliances, Midea Group, Skyworth, Changhong, Whirlpool, Vantage and other home appliance companies have actively laid out new retail, and accelerated the integration of online and offline through the president's platform with goods and the formation of live broadcast teams.

"The competition of competitiveness in the future home appliance track is essentially to meet and create the needs of Generation Z. Generation Z is more willing to try innovative products with a sense of science and technology, home appliance companies should make more efforts in innovation, apply innovative technologies such as AI, IoT, 5G to home appliances pragmatically, and use innovative services such as customized purchase and voice ordering to touch generation Z, stimulate their consumption power, and truly stimulate domestic demand. Listed companies in home appliances should play a leading role. Dong Min, deputy secretary-general of the China Electronic Video Industry Association, told the Securities Daily reporter.

(Edited by Sun Qian)