The electronics industry in China has developed rapidly over the last few decades. China overtook the United States and became the largest consumer electronic market in 2013. A third of global consumer electronic sales occur in China.
China is becoming the main driver in the global consumer electronics industry. It’s no surprise to see the rapid growth in the consumer electronics market in China considering the countries large population, with 160 Chinese cities having a population of more than one million people, in comparison to the U.S. having only nine cities with more than one million people.
In addition, China’s economy is expected to grow 7.4% this year, a figure also higher in comparison to the U.S. The most significant growth in China’s retail market is mainly with mobile phone products, which has a 16% retail sales growth.
Note: This article was originally written in 2015.
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China is still known as the world’s factory, despite recent potential changes. Electronic devices and home appliances from companies all over the world are made in China. However, these foreign products are more and more being challenged by domestic ranges.
Samsung electronics like the incredibly popular Samsung Galaxy line of smartphones are now competing with Chinese brands like Huawei and Xiaomi. Larger electronic products like smart home TVs, washing machines, and series 4k home theater systems are being developed in larger numbers than ever by Chinese producers.
1. The Television Market 📺
China’s television (TV) market is rather mature, with the main focus of development on new technology and new sales channels in order to have stronger growth. There were 42 million TV units sold in 2014, and in 2015, this figure declined by 6.7%.
The main driving factors of sales are the large screen, high definition (HD) smart TVs. China’s HD TV sales now account for 14% of the market, where 40% of TVs sold in China are 46” or more, and 70% are smart TVs. Smart TVs and HD screens make up the more significant current trends in the TV market.
Online market sales are an obvious trend, accounting for annual total TV sales of 15%. With the rapid development of the online market, the proportion of online sales is expected to grow sharply.
2. PCs and Tablets 💻
China’s PC market is still developing, and the tablet will take up much of the growth in this area. The smartphone market is very active, with the market demand for smartphones continuing to rise.
China’s mobile communications products have grown in recent years, as evidenced by a 75-80% penetration rate for 4G in just 2 years. This growth accounts for more than 420 million 4G devices.
Many Chinese consumes own more than one PC/laptop. This is typically because Chinese consumers often purchase a different PC/laptop to meet different needs rather than one laptop to meet all their needs. Rapid growth of the tablet market began in 2010, meaning the market’s history is short, however it does have a bright future.
The tablet market is expected to overtake the PC market, as there with its significant growth in sales and market share. The PC market in western countries may already be mature, however, as a developing country, China still has much room for growth in this area.
3. Mobile Phones 📱
It is evident that the mobile phone market is the most significant opportunity in the consumer electronics industry, as computers and televisions proved to be in the more mature stages of development in comparison to the mobile phone market.
China is still a developing market, and there are still some factors that need to be considered.