In 2014 China’s household appliance industry will continue steady development

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According to the information communicated by the China Household Appliances Association (CHEAA), in the last year China’s consumers tended to buy high-end and more expensive products, industrial upgrading continued, while e-commerce increased significantly (including for large appliances) when considered alongside traditional off-line sales patterns. Meanwhile, stimulus policies ended. Given the recent, relatively stable macroeconomic development of China, coupled with improvements in the international economic environment, it can be expected that in 2014, China’s home appliance industry will continue on a positive trajectory. The industry’s turnover in 2013 was forecast to reach 1.3 trillion RMB, an increase of 14-15%. Total profits were expected to reach about 110 billion RMB before tax, 73 billion RMB after tax, an increase of over 25%. Economic growth was mainly due to technological innovation and management innovation which brought in enhanced profitability. The low price of copper, aluminum, steel and other raw materials being low also greatly reduced procurement costs. Appliance industry exports in 2013 were expected to reach 54.5 billion RMB, an increase of about 8%. In recent years, China has entered a period of consumers upgrading their products. Consumers are increasingly keen to have better quality products, stylish design, energy saving and high-end products. In addition, as the younger generation of consumers have become an increasingly important group using appliances, their consumption habits and changes in consumption patterns also contributed to an evolution in appliance industry sales patterns.