GfK TEMAX: slight slowdown within China’s TCG market


The Technical Consumer Goods (TCG) market in China reached ¥283.77 billion in the second quarter of 2013 (¥287.67 billion in Q1 2013), increasing by 22.5% when compared to the same quarter in 2012. The Telecommunication (Telco) sector was the biggest growth driver with a value increase of 42.3%.


Telecommunications: Market leader

As reported by GfK TEMAX, in the second quarter of 2013, overall sales in the Telco sector reached ¥1318.8 billion, a rise of 42.3% compared with the same period of last year.

Under sales promotions in Q2 2013, the mobile telephone market contin-ued to increase, but at a slower rate. Additionally, domestic brands are having an influence on the smartphone segment.

Small Domestic Appliances: Increases for most segments

In Q2 2013, the SDA sector reached ¥6.47 billion, with an increase of 22%.

The competition is fierce in the rice cooker segment. The products with electromagnetic induction heating technology are becoming more and more popular; however, mechanical rice cookers are declining. Regarding juicers, low speed squeezing type products saw strong increases.

*Air Conditioning has been excluded from the SDA sector and figures have been reworked for previous years.

*GfK China started tracking new SDA products as of Q1 2011.

Major Domestic Appliances: Policy drives an increase

In the second quarter of 2013, the sales value of the MDA sector was ¥40.64 billion. Its high growth rate reached 10.4%.

In Q2 2013, the washing machine market was helped by the “energy subsidies” policy and big sales. Because the “energy subsidies” policy expired on 30th May, refrigerators in the city performed well, but the suburb county and rural markets suffered due to the lack of consumer demand, exhausted by the “home appliances to the countryside” policy. The microwave oven market dropped but medium-end and high-end products saw some positive signs.

Consumer Electronics: Flat TV segment shows sound growth

In Q2 2013, the market size of the Consumer Electronics sector in-creased to ¥44.19 billion, with 12% growth.

The flat TV market showed sound growth before the “energy subsidies” policy expired at the end of May. The traditional digital camcorder mar-ket was confronted with the challenge of digital cameras and smart-phones with HD DV function.

Information Technology: Better than last quarter

In the second quarter of 2013, the IT sector achieved ¥49.83 billion, increasing by 7.9%.

Quad-core and 3G products recorded rapid growth in the webbooks mar-ket. As new processors and Windows 8 operating system launched, con-sumer demand for notebook computers saw slight increases. Desktop PCs witnessed a recovery, however figures remained negative. The key-board and mouse segment also saw further drops in Q2 2013.

Office Equipment: Slack performance

The Office Equipment sector achieved ¥3.72 billion in Q2 2013, an in-crease of 3.7% year on year.

Due to reduced demand for home users and small and medium enter-prises, as well as price cuts for laser printers, ink-jet printers dropped significantly. 

Photo: Showed negative growth

In Q2 2013, the value of China’s Photo sector amounted to ¥7.05 billion, a decrease of 8.4%.

The growth rate of SLR and CCD cameras slowed down. The compact camera segment market shrank; manufacturers paid more attention to high-end products in an attempt to stabilize technical barriers and raise prices.

Slight slowdown within China’s TCG market

In the first half of 2013, China’s macro economy maintained a stable and positive trend. Apart from the photo sector, each sector saw positive growth year-on-year. The growth of the Telco sector continues to lead the overall market.

In Q3 2013, China’s TCG market is expected to see further increases.

*Air Conditioning has been excluded from the SDA sector and figures have been reworked for previous years.

*GfK China started tracking new SDA products as of Q1 2011