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Air energy water heaters are not free money

Kukel International Group Limited | Updated: May 22, 2018

Looking at the public safety incidents in recent years, “yoghurt gelatin” fired the yogurt maker, “melamine” heated the soya-bean milk maker, and “drinking water safety issues” triggered the water appliance market again... It is not difficult to find an interesting phenomenon here: There is always a home appliance with the help of "topics" quickly become popular, worth skyrocketing. The closest to us are air purifiers that have been rising in sales in recent haze. Then, the high-speed growth of air-to-water heaters is bound to have its cause!


     There is no lack of chance in the above-mentioned products, and some of them are even doped with hype. However, it is undeniable that they are highly consistent with the needs of consumers and have won business opportunities in the highly competitive home appliance market. Compared with traditional household electrical appliances, most of these products that meet the consumer's pursuit of health, green, safety, and comfortable life can be categorized into emerging home appliances. In the past two years, dry cleaning machines and wine cabinets that are familiar to and accepted by consumers have gradually become popular. Dishwashers, dehumidifiers, coffee machines, and IH rice cookers (electromagnetic rice cookers) are all included in this list.


     Driven by consumer upgrades, emerging home appliances are becoming another growth point for the home appliance industry. Taking water purification equipment as an example, in 2012, when the sales of traditional home appliance products generally declined and the demand was weak, the contrarian trend increased by more than 10%. In the past two years, the average increase of air purifiers exceeds 15%. There are also air-energy water heaters (heat-pump heaters), which are always surpassing their speeding growth, far more than other water heaters. Emerging home appliances not only expand the product line in the field of home appliances, but also broaden the development path for companies, and become the "testing field" for new technologies and new market ideas.


     However, it is worth noting that the use of new household electrical appliances has only just begun in China and is basically in the initial stage of market introduction, and the penetration rate is relatively low. For example, in the past two years, the hot water purification equipment on the market has developed for almost 20 years, and the penetration rate of 2% seems to have become the ceiling for its growth. In addition to domestic consumer attitudes and consumer awareness, the low market access threshold and product mix are the main reasons. Emerging consumer electronics products are rich in product types and their life cycles are constantly being shortened. This requires companies to have rapid innovation capabilities. However, what we have seen is that although new products emerge in an endless stream, businesses have focused their efforts on the appearance of products, publicity and hype, and neglected the performance of products. This is particularly evident in the air purifier industry.


     Unlike traditional home appliances that are fiercely competitive, new home appliances are still a blue ocean. Similarly, regardless of the type of market that companies want to have long-term stable performance, they must have deep technical reserves and product R&D capabilities, as well as an ever-improving brand influence. The competition in the emerging home appliance industry is a long-distance race, not a 100-meter sprint. Air-energy water heaters, as industries that have just emerged in recent years, have very promising prospects. However, if air-powered enterprises are obsessed with making quick money, making the entire industry unruly, this is a short-sighted industry for air energy companies and is a deadly act. Overdraft consumer demand at the price of "a rich night" category is particularly true! We need to have a degree, we must take a long-term perspective, air energy water heater companies can only be greedy money!


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