Value Positioning Wins in China's Cooking Appliances

Executive Summary#

While many consumer electronics categories moved towards premium products, China's desktop cooking appliance market moved the other way in 2022. Low-end and mid-range price segments drove the strongest growth, while growth in high-end segments slowed, in each of the eight categories covered^[1]. The entry of many brands and fast product iteration pushed prices down, and in electric grills only products priced below CN¥ 500 grew. This analysis looks at pricing across the categories, sets out the strategies of brands such as Morphy Richards, which differentiated on design at premium prices, and Shanben, which competed on volume at low prices. It also considers the choice facing brands in a market where products are becoming harder to tell apart.

Growth at the Value End of the Market#

Value for money remained the main theme of pricing in every desktop cooking appliance category in 2022, which sets the market apart from the many consumer electronics and home appliance segments where premium products have driven growth. In air fryers, desktop electric steamers and multifunctional pots, the low-end and mid-range price segments grew fastest, while growth in the high-end price brackets slowed.

The arrival of many new brands in each category drove product iteration and competitive pricing. In electric grills, only products priced below CN¥ 500 achieved positive year-on-year (YoY) growth. The middle and high-end segments contracted as products became more alike and consumers found it hard to see a meaningful difference in quality at higher prices.

We believe this pattern reflects how mature some of these categories have become. When products from different brands are functionally similar, as basic air fryers and electric grills were by 2022, price becomes the main way to compete, and margins come under steady pressure.

Air Fryers: Competition on Volume#

Air fryers show the value-driven growth model most clearly, since the fastest growth in the category came at the most accessible price points, and we believe this confirms that the mass-market price tier generated the most new demand. Brands such as Shanben (Yamamoto) and Aux (Oaks) built their air fryer business on low average selling prices (ASPs), while mid-priced products without a clear point of difference face pressure from premium innovators above them and from value competitors below.

The Design-Led Exception: Morphy Richards#

Morphy Richards (Mofei) shows that differentiation on design can support premium pricing even in a market where products are becoming alike, since its multifunctional cookware sells at prices well above the category average. Its distinctive "British retro style" appeals to young consumers who want kitchen products that also work as lifestyle accessories.

Sales of multifunctional cookware came under pressure across the category in 2022. Average prices among the larger brands in the category vary widely, which we believe points to a divided market in which design-led and imported brands compete at the premium end, while domestic brands compete for value-conscious consumers.

Pricing Patterns Across Categories#

The same pricing pattern appears in category after category. In electric grills, growth concentrated at the value end, with the fastest growth among the lowest-priced products. We believe this shows that in a category where consumers care most about basic functionality and affordability, higher prices met resistance whatever the strength of the brand behind them.

Electric crock pots show a different pattern. Revenue held in the CN¥ 1.05-1.18 billion range over five years while volume fell 34.8%, so that higher average prices masked the fall in volume as the remaining buyers traded up to higher-quality products. This suggests that some categories can sustain moderate increases in average price, but only by accepting a smaller base of buyers.

Strategic Implications for Brands#

The pricing data leaves established brands with a difficult choice as their categories become more commoditised:

• Value positioning works at scale: Brands such as Shanben in air fryers and Changhong in electric grills competed on aggressive pricing, which we believe confirms that volume-driven strategies capture the largest share of new demand
• A premium price needs real differentiation: Morphy Richards shows that design-led positioning can command a substantial price premium, which depends on continuous innovation in both design and user experience
• Mid-priced brands face pressure from both sides: Brands in the middle of the price range without clear differentiation face the hardest competition, from value players below them and premium innovators above
• A premium built on technology: International products such as the Ninja SP301 (CN¥ 2,498) show that clearly better technology, such as dual heating and sensor-based cooking, can justify a premium price^[2], which points to where competition may move next

Key Takeaways#

• No premiumisation trend emerged in any of the eight desktop cooking appliance categories in 2022, and the low-end and mid-range segments drove the strongest growth
• In air fryers the fastest growth came at the most accessible price points, and brands such as Shanben and Aux build their strategies on low average prices
• Morphy Richards holds a premium position in multifunctional cookware through design differentiation
• Electric grills grew only below CN¥ 500, where the lowest-priced products grew fastest
• A lasting premium position depends on continuous innovation in technology, design and marketing for specific usage scenarios, and brand heritage alone is not enough

## About the Data

This analysis draws on Moojing Market Intelligence data covering the 2018-2022 period. Moojing analyses brand and category performance across major Chinese e-commerce platforms. For full methodology and additional insights, see the complete Desktop Cooking Appliances whitepaper.