China Home Appliances Q1 2023: How Emerging Categories Grew

Executive Summary#

Home appliance sales on two leading Chinese marketplaces were almost flat at CN¥ 50.41 billion in Q1 2023, while major appliances grew 3.7% YoY. Traditional categories are approaching saturation, and emerging segments such as outdoor power supplies (+215.1% YoY), wall breakers (+40.5% YoY) and floor scrubbers (+28.8% YoY) are reshaping demand across five high-potential usage scenarios. This analysis examines how innovation built around these scenarios is creating the next wave of growth in the appliance market.

Major Appliances Lead the Rebound#

Major appliances led the market in Q1 2023 with CN¥ 22.90 billion in sales and growth of 3.7% YoY.^[1] Kitchen appliances were almost flat at CN¥ 17.98 billion, while living appliances, at CN¥ 9.52 billion, came under pressure. We believe the difference reflects a structural shift, in which consumers give priority to essential, high-ticket purchases and put off spending on smaller, convenience-oriented products.

The recovery was uneven across traditional segments. Air conditioning grew 37.1% YoY, the strongest rebound, as seasonal demand returned to normal after the pandemic had held back installations, and refrigerators grew 22.0% as consumers upgraded to energy-efficient models. Heaters and sweeping robots came under pressure over the same period, the latter as the category entered a maturation phase.

Emerging Categories Deliver Outsized Growth#

All the emerging categories in the report posted positive sales growth in Q1 2023, and the fastest of them posted triple-digit growth. Two forces explain this performance: technology-driven value creation, where new features justify premium pricing, and market expansion, where new brands enter with cost-effective strategies to meet demand that existing products do not serve.

Pricing split the emerging categories into two distinct patterns:

• ASP increases: Cat litter boxes (+49.5%), outdoor power supplies (+31.7%), feeders and e-book readers, driven by technology features that add genuine value
• ASP compression: Floor scrubbers, learning machines and wall breakers, driven by market maturation, new entrants and stronger price competition

We believe both patterns are healthy for the market, since the first shows that consumers are willing to pay for innovation, while the second brings advanced products within reach of more households.

Outdoor power supplies surge 215% as camping culture drives emerging category growth

*Source: Moojing Market Intelligence*

Five Scenarios Defining the Growth Frontier#

Moojing Market Intelligence identified five high-potential usage scenarios that offer the most promising routes to growth for appliance brands, and each of them reflects a distinct consumer need shaped by lifestyle changes since the pandemic:

• Outdoor Camping: Outdoor power supplies (+215.1% YoY) and camping lights (+33.1% YoY) lead the scenario, as camping matures from a pandemic-era novelty into a lasting lifestyle change
• Pet Care: Feeders (+65.7% YoY) and cat litter boxes (+21.7% YoY) show premiumization toward intelligent, labour-saving products, driven by rising urban pet ownership
• Learning and Office: Learning machines (+13.8% YoY) and e-book readers (+6.6% YoY) benefit from the "double reduction" education policy
• Household Cleaning: Floor scrubbers (+28.8% YoY) lead the move toward integrated, multi-function cleaning solutions, with 200+ brands competing
• Kitchen Cooking: Wall breakers (+40.5% YoY) and juicers (+9.0% YoY) grew faster than traditional categories, as consumers look for versatile, compact cooking solutions

Social media sentiment analysis across major Chinese social platforms shows a common thread in all five scenarios. Consumers increasingly judge appliances from a convenience-first point of view, and they give priority to features that save time and effort in daily routines over technical specifications.^[2]

Key Takeaways#

• Home appliance sales on two leading Chinese marketplaces were almost flat at CN¥ 50.41 billion in Q1 2023, while major appliances grew 3.7%
• Outdoor power supplies grew 215.1% YoY, the fastest of the emerging categories, as camping becomes a lasting lifestyle trend
• Floor scrubbers remained the largest emerging category at CN¥ 1.27 billion, up 28.8% YoY, with 200+ brands competing
• Five scenario-based segments, outdoor camping, pet care, learning, cleaning and kitchen cooking, together account for most of the growth in emerging categories
• Consumers judge appliances from a convenience-first point of view in every scenario, and favour brands that save them time and effort over those that emphasise technical specifications

About the Data#

This analysis draws on Moojing Market Intelligence data covering Q1 2023. The sales figures come from two leading Chinese marketplaces, and the consumer findings from social media analysis. For full methodology and additional insights, see the complete Home Appliances whitepaper.