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.
How is the Chinese 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. 40% of TVs sold in China are 46” or more, and 70% are smart TVs. Smart TVs and HD screens are the 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.
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 accelerated in recent years, as evidenced by a 75-80% penetration rate for 4G in just 2 years, accounting 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.
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. Firstly, more and more people focus on mobile development when desktop development is also still demanded. Secondly, online platforms could grow sales immensely, however a combination of both online and offline sales is obviously the most ideal for growth. Thirdly, pricing and promotion should be localized. Emerging technology is a major source of growth in the future electronics market. Products such as smart watches, wearable health monitoring devices and 3D printing are main drivers for the future of market growth in the consumer electronics industry.