High-end home appliances are snapped up! Middle class impact "cost-effective consumption"

The huge market dividend brought about by the rise of the middle class is considered the investment theme for the next decade. According to data released by the middle class white paper on science and technology, China’s population will reach 1.45 billion in 2020, and the number of middle class people will account for more than 48% of the total population, and this figure will exceed the entire European population. Under the background of the rise of the middle class, the high-end home appliance market is very popular, and the smart TVs, washing machines, and refrigerators in the range of 10,000 yuan are listed. Among them, Samsung's Quantum-dot TV is the most eye-catching and sets a new standard for television in terms of color, design, and manipulation. It is considered as an entrance for high-end living rooms and smart living rooms.
Consumption concept transformation, cost-effective performance ratio

In fact, the rise of China's middle class has already appeared as early as 2015. At that time, Chinese consumers did a “sensation” around the world: They ran to Japan and bought the toilet seat almost completely. And this is not a case. The people are keen to buy in foreign countries. They are willing to go over mountains to buy a rice cooker and buy a bottle of eye drops... These phenomena have caused heated discussions.
"Purchase" is only a microcosm, and the rise of the middle class will undoubtedly cause a series of changes. In the past two years, China has constantly mentioned supply-side reforms, craftsmanship, and transformation and upgrading. From mentioning to emphasizing to implementing, these reforms have the impact of the rise of the new middle class.

The middle class has a strong purchasing power, pays more attention to product quality and promotes consumption upgrades, and price considerations will be placed second. In other words, the previous price/performance ratio tilts toward the performance ratio. Zhongguancun Online’s “Measurement of Middle-class Science and Technology Consumer Survey” released in August showed that 91% of consumers are willing to pay for personalized products. Judging from the TV market, TV product technology diversification, ultra-high-definition, large-size, and overall reflects the transformation of the product structure to high-end. China Yikang's retail monitoring data also shows that quantum dots and OLED TVs, which are the cutting edge of display technology, also occupy a certain market share. At present, quantum dot TV accounts for 1.7% of the total color TV market, and OLED accounts for 0.4%.
With the rise of high-end home appliances, Wu Xiaobo, a well-known financial expert in the middle class, believes that 2016 is the first year of new-middle-income consumption and is the beginning of China's consumption upgrade. This is a challenge. It is also an opportunity. The market in the future will be the middle class. We cannot conform to the needs of the times, realize the innovation of product technology and ideas, and create products with quality. We cannot rely on the future market.
The high-end consumer electronics market is particularly evident this year. Whether it is Samsung, LG, Sony and other foreign appliance giants, or domestic leading companies such as Hisense, TCL, have released their high-end products. It can be seen that the prices of smart TVs, washing machines, and refrigerators are all in the yuan range, and the high-end trend is obvious. And these latest products, in addition to their own powerful features, the technology experience is also full of sense. Like the latest Samsung Quantum Dot TV, not only the picture quality has reached the 4K level, but also equipped with a cool voice control, and even can interconnect with the mobile phone, to achieve the sharing of large and small screen resources. The Samsung Art Wall Art TV is tailor-made for high-end users. It has two modes of use: "TV mode" and "art mode". It breaks through the usage scenarios of traditional TVs, and innovatively creates a concept of 24 hours without shutting down.

According to the monitoring of Ovid Cloud Network, during the National Day promotion period, the average price of all categories of household appliances rose across the board, and the product structure was significantly upgraded. Ove Cloud Network data shows that during the National Day period, the penetration rate of retail sales of intelligent and UHD color TVs was as high as 98% and 92% respectively, and the penetration rate of curved TVs was 16%. “Every year on a major holiday, foreign brands must have sold well, because their products are more expensive, and channels are willing to send money to them.” According to Guo Meide, vice president of Ove Cloud Network and General Manager of Appliance Big Data, With the upgrading of consumption, the number of companies in the future will become less and less. “In the past, those who did not pay attention to products and did not pay attention to R&D and brand promotion would be gradually eliminated.”
The arrival of the middle class brings tremendous spending power. The middle-class families are demanding quality life, and China's consumer market will face a qualitative innovation. More competitive products are no longer the cheapest but more quality.

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