So far, the epidemic situation in China has been initially eased, but major enterprises are still making relevant strategic adjustments and work plans, and the government is expected to introduce relevant measures to stimulate the market recovery. MIR Industry long-term monitoring switch socket market, relying on rich market research experience, recently launched the 2020 China Switch socket Market Annual Report, summarized the market last year, and forecast the future development, the following is a summary of the report content.
Overall Market Overview
Switch socket demand and the development of real estate is closely related, 2014 and 2015 is the boom of real estate, so switch socket overall market rapid growth, which is the emergence of countless small switch socket manufacturers, as of the end of 2017 switch socket market size reached 19.97 billion yuan, and then the growth rate gradually flattening.
Since 2018, real estate policy regulation has continued to tighten. In 2019, real estate in the first and second-tier cities gradually entered the stock market, and the growth rate slowed down. In the spring of 2020, due to the impact of COVID-19, the building materials market will be closed, construction sites and logistics will be suspended, and the retail market will be greatly impacted. Engineering project market demand delayed, but is expected to have little impact on the year. Considering the real estate industry as one of the stabilizers of the economy, the purchase restriction regulation policy in 2020 May be relaxed, switch socket about half a year to a year after the real estate start delay into 2021 switch socket market growth is expected to improve.
China switch socket market size and Growth rate from 2016 to 2021
(Data source: MIR Databank)
Summary of hot topics in 2019
L Retail growth is weak, project market is up
In recent years, the proportion of hardcover rooms has been rising, and the engineering project market has greatly squeezed the retail market. Both the national and regional engineering markets have seen significant growth, and the overall retail market declined by more than 10% in 2019. In order to make up for the gap in the retail market, major brands have made great efforts to hit the KA customers of real estate enterprises, expanding personnel, establishing professional teams, launching new products and providing more flexible strategic prices. Siemens set up a professional project team at the end of the year, Bull also completed the establishment of a real estate company KA team, most of the mainstream manufacturers have launched new projects.
L Channel sinking trend is obvious, high-quality agent resources continue to expand
Despite the sluggish retail environment in central cities, bulls bucked the trend in third - and fourth-tier cities in 2019. In order to seek new growth points, other manufacturers continue to explore the third and fourth tier regions, and high-quality agent resources become the object of many manufacturers. Some manufacturers will sink retail and engineering channels to the city level, and some retail channels to the county level, expand agents and dealers, and increase channel coverage of the third and fourth lines and weak areas.
L Smart home has become a new focus of manufacturers
Passed 3 to the market of 5 years cultivate period, the market heat of intelligent household rises gradually. In 2019, major switch socket brands have launched smart home products. Some switch manufacturers launched intelligent door lock products, the initial test of the smart home market; Part of the switch manufacturers to provide the whole house wired intelligent solutions, the current cost is high, wired solutions customer groups are mainly banks, governments and other public institutions, as well as part of the villa mansion single project, the market capacity is small; There are also some manufacturers launched wireless intelligent single products, which can be applied to the intelligent upgrading of new and old houses, and can be expanded and linked to other single products in the later stage. The threshold of use is low, and the product has high ductility, which is suitable for ordinary consumer groups.
Summary of switch socket market segment
L Competition pattern:
The industry has entered a stable growth period, and manufacturers are increasingly competing for the market. As the growth of the first and second tier cities slows down, major brands are gradually exploring the third and fourth tier cities, launching low-cost products to seize the market and squeezing the share of small and medium-sized manufacturers. The market share occupied by the TOP companies in the industry increased year by year, and the market share of the TOP8 companies increased from 43.2% in 2018 to 45.6% in 2019. Among the TOP brands, Bull, with its strong channel laying and brand promotion, ranks the first in market share, more than double the second. Siemens and Chint, the established enterprises, remain in the second echelon with stable performance development; Schneider came from behind and grew rapidly; Roger Lang switch socket business recovery, substantial growth in engineering performance.
L Business model:
Offline retail channels in the central city of all manufacturers have a big decline. Consumers are currently more inclined to turn to home improvement companies for procurement; E-commerce channels gradually mature, consumers have shifted; In addition, the proportion of hardcover rooms in commercial housing increases, resulting in the offline retail market share is squeezed.
Since 2017, the scale of refined decoration commercial housing has been improved. In 2019, the opening scale of refined decoration commercial housing in China is expected to increase by more than 30%, and gradually radiates from the first and second tier cities to the commercial housing market of the third and fourth tier cities. The willingness of consumers to choose hardcover room also increased year by year.
(Source: National Bureau of Statistics, MIR Databank)
(Source: National Bureau of Statistics, MIR Databank)
In addition, in 2019, TOP50 real estate enterprises occupy about 50% of the national market share, the real estate industry continues to gather to the head, the advantages of the top 100 real estate enterprises in land acquisition and development and construction are far greater than regional small and medium-sized enterprises, all brands have carried out the development of engineering KA channel.
In terms of home decoration channels, KA market share continues to rise. In the past two years, home decoration companies have gone through a round of survival of the fittest, and the living space of small companies has been squeezed. The remaining head home decoration companies are mainly equipped and all-inclusive. Schneider and Bull have targeted home decoration KA market and established regional teams to cover home decoration customers; Traditional advantage manufacturer Simon in addition to actively establish centralized procurement with national manufacturers, but also continue to make efforts to regional home decoration companies designer channels. At the same time of developing the market, in order to avoid the loss caused by the capital chain fracture of the home decoration company, all brands have strengthened the requirements on the speed of payment collection.
In 2019, the overall growth rate of e-commerce channels was still above 10%, and there was a high degree of convergence between product end and retail channel, with no obvious channel differentiation. At the demand end, the post-90s who have the habit of online consumption gradually become the main consumer, which leads to the diversion of retail channels to online.
L Decoration main body: home decoration and public decoration
According to the terminal application we will switch socket market is divided into public/home decoration (rough room)/home decoration (second-hand room) three major. Affected by the national fine decoration policy, the proportion of public housing will continue to increase. Home decoration market gradually by the new housing market (rough housing) to the second-hand housing decoration market transition (second-hand housing).
L Regional performance:
Switch socket market share is mainly concentrated in east China, North China and south China three regions, the above three regions regardless of real estate or home decoration industry have better development. Since 2017, enterprises have increased their efforts to acquire land in core cities in western China. Most of the newly added land reserves are in key urban agglomerations and core cities in central and western China. The newly added land reserves in Chongqing, Chengdu, Xi 'an and other cities are prominent, and the attention of western cities continues to increase. It is expected that the market share in east China will remain the first in the next two years, and the market share in central and western China will continue to rise.
The above content is summarized from the 2020 Annual Report of China Switch Socket Market
