The refrigerator market has experienced some challenges in recent years, primarily due to the lag in real estate purchase restrictions, a high number of existing units, and limited product replacement cycles. In 2017, the situation was particularly tough as rising raw material costs pushed the industry to its limits. According to data from Avi Cloud (AVC), China’s refrigerator retail volume in 2017 reached 33.76 million units, a slight decline of 0.6% year-on-year. However, retail sales increased by 3.9% to 93.9 billion yuan.
Industry data also showed that total output for the refrigerator sector in 2017 was 75.162 million units, up 0.8% year-on-year, while total sales were 75.072 million units, an increase of 1.2%. Domestic sales, however, saw a drop of 5.3%, reflecting a more challenging environment for local manufacturers.
With the previous year's performance under scrutiny, the 2018 market outlook has drawn significant attention. AVC forecasts that the refrigerator market will see a 0.6% year-on-year increase in retail volume, reaching 34.96 million units, with retail sales expected to rise to 96.4 billion yuan, a 2.6% increase. As consumption upgrades and replacements continue, there is still potential for growth in 2018.
However, the challenge of high raw material costs remains a major obstacle for most manufacturers. Under the pressure of rising costs and industrial upgrading, brand concentration in the refrigerator market is expected to increase further, with stronger brands gaining even more dominance. Last year, the top 10 brands accounted for 93.5% of the market, a nearly 5-point increase from the previous year. This trend is expected to intensify in 2018.
In addition, consumer demand is shifting towards more personalized and high-quality products. User-centric innovations are driving changes in consumption habits. Why have leading refrigerator brands managed to gain market share despite fierce competition? TCL, for instance, has focused on health preservation and smart upgrades, offering new ideas for the entire industry.
**Unchanging Preservation**
The refrigerator market is undergoing a structural shift, with consumer demand pushing for internal functional improvements rather than just external design changes. Health preservation and smart connectivity have become key areas of focus. A survey conducted by Yiyikang and Red Top Award in 2017 found that consumers prioritize preservation technology, energy efficiency, and intelligent control when purchasing refrigerators. Among these, preservation technology received the highest attention at 41.3%, indicating a growing concern for health and food freshness.
In response, major brands have launched high-end models focusing on advanced preservation technologies. TCL, Midea, Haier, Rongsheng, and Meiling all offer unique solutions. TCL, in particular, has made significant progress in ingredient preservation through its integrated inverter air-cooled refrigerator. After three years of research and development, TCL introduced 17 core technologies and 85 patents, achieving breakthroughs in professional air-cooling and smart functions.
TCL’s refrigerator features fast cooling at 1°C within two minutes, locking in nutrients and preserving original flavors. The AAT negative oxygen ion technology helps purify the air, deodorize, sterilize, and maintain freshness. It achieves a 7-day water retention rate of over 90% for fruits and vegetables and removes 91.17% of E. coli. The refrigerator also includes specialized storage zones such as dry/wet partitions, maternal and child areas, and a -1°C constant temperature zone, ensuring optimal conditions for different types of food.
Some industry experts believe that as disposable incomes rise, consumers are increasingly demanding refrigerators that preserve ingredients at their original quality. This trend highlights the urgent need to improve preservation technology. AVC predicts that 2018 will be a year of intense competition around preservation technologies, with more advanced solutions helping brands capture high-end market shares.
**Achieving Innovative Smart Transformation**
Beyond preservation, smart upgrades are essential for sustainable development in the refrigerator industry. With the rapid integration of AI and the internet, smart home solutions are becoming a key driver for innovation. Younger consumers, especially the 90s generation, prefer personalized and tech-driven products, shaping the future direction of the industry.
TCL has positioned itself as a leader in smart appliances. At the 2017 CES, TCL Group Chairman Li Dongsheng emphasized that AI would become a standard feature in TCL products. The company has been integrating smart functions into its refrigerators, aiming to expand into the broader smart home ecosystem.
For example, the TCL BCD-499WEF1 model introduces smart air functions that ensure even cooling and prevent cold spots. Unlike traditional door-mounted screens, TCL focuses on user experience, addressing pain points with practical and intuitive smart features. The company doesn’t just add simple smart functions; it integrates smart +, function +, scene +, and audience + approaches to meet diverse consumer needs.
TCL’s “smart + Internet†strategy emphasizes technological innovation, enhancing traditional advantages with high-tech value. This approach brings products closer to smart home environments.
In 2018, TCL will continue to refine its smart technology, offering users a seamless and superior experience. The company remains committed to innovation and its role as a national brand. On March 6, 2018, TCL will launch new refrigerator and washing machine models in Shanghai, with global brand spokesperson Ma Tianyu joining the event. As the new product is unveiled, what surprises will TCL bring to the market this year? It’s definitely worth watching.
A mobile surveillance light tower is a portable tower equipped with high-powered lights and surveillance cameras used for monitoring and securing outdoor areas. It is commonly used in construction sites, events, parking lots, and other locations that require temporary or mobile security measures.
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