2013 CHINA WALL SWITCH AND SOCKET MARKET REPORT

Transcription

1 2013 CHINA WALL SWITCH AND SOCKET MARKET REPORT 新业视点咨询公司 Green Industry Market Research Company Ltd Company Address: Level 7, Metropolis Tower, No. 2, Haidian East Three Street, Zhongguancun Xi Zone, Haidian District,Beijing, , P.R. China Tel: Fax:

2 PREFACE During the first quarter of 2013 GIM Research has conducted another round of in-depth research and analysis into the Chinese wall switch and socket (WSS) industry and is now pleased to present the 2013 China Wall Switch and Socket Market Report. The report is essential industry reading, featuring all the latest trends such as market sizing, product info and distribution channels. It features a thorough competitive analysis based on the 2012 market, plus expert views and opinions for 2013 and beyond. Based on over 20 in-depth face to face interviews as well as telephone interviews with the key industry players, this report is the product of a rigorous and methodical research and analysis process, conducted by an expert team of consultants and researchers, who possess a deep understanding of the wall switch and socket (WSS) industry market in China. Armed with this report, you and your management team will have a critical advantage within the market place. From planning key strategies for growth to understanding and properly evaluating opportunities and threats, the 2013 China wall switch and socket (WSS) Report will empower your company with the vision and insight necessary for success. If you want to learn more about this report or our company, please us at info@girmresearch.com or visit our website at COMPANY INTRODUCTION Green Industry Market Research Company Ltd. (GIM Research) is a market research agency that specializes in conducting independent and exclusive studies focusing on the building efficiency and new energy sectors, and offers a comprehensive range of market research services to clients across the globe. Established by a dedicated group of market consultants, GIM Research offers many years of combined experience in the building efficiency and new energy sectors, and their personal network of researchers, consultants and insiders reinforces the strength and accuracy of all of our syndicated reports. The team at GIM research strives to give our clients the most precise and clear evaluation of the market, and has the willingness and the know-how to guide them towards achieving success in the market.

3 2013 China Wall Switch & Socket Market Report GIM Research 2013 Copy Right

4 TABLE OF CONTENTS 1 Market and Study Scope Definition Market Definition And Study Approach Market Definitions Research Methodology Market Segmentation Methodology WSS Product Coverage Executive Summary Market Size, Forecast and Trends Economic Environment China s Construction Market Urbanization in China: Still Going Strong after 30 Years Soft Landing in Property Investment, with Shift to More Commercial Building Ambitious Government Plans for Subsidized Housing Market Size in Market by Tier Market Segmentation by Region Distribution Vs Project Sales Market Forecast Market Forecast Market Trend by Market Segment Market Contributed More from Commercial Building Market Sector Five-Star Hotel Investment Heats Up Product Trends Current WSS Product Status Product Characteristics by Segment End User Analysis Suppliers and Market Characteristics Market Characteristics GIM Research 2013 Copy Right

5 4.1.1 Market Share in Key Suppliers in the Distribution Market Key Suppliers in the Project Sales Market Distribution Channels The Growing Trend Of Strategic Cooperation Between Suppliers and Developers Distribution Channel Categories Building Material Markets (BMM) Exclusive Brand Shops (EBS) Mom and Pop Hardware (MPH) Shops E-Shops The Decoration/Fit-out Company WSS Channel Analysis WSS Product Pricing Price Vary with Distributional Structure WSS Product Production Key Suppliers Introduction TCL Legrand Feidiao CHINT Schneider Electric Panasonic Siemens GIM Research 2013 Copy Right

6 LIST OF TABLES Table 3-1 WSS Market Size, USD mil., Table 3-2 WSS Market Size, RMB mil., Table 3-3 Market Size by Tier, USD mil., Table 3-4 Market Size by Tier, RMB mil., Table 3-5 TI Market Market Share by Supplier, US$ mil Table 3-6 T1 Market Market Share by Supplier, RMB mil Table 3-7 T2 Market Market Share by Supplier, US$ mil Table 3-8 T2 Market Market Share by Supplier, RMB mil Table 3-9 T3 Market Market Share by Supplier, US$ mil Table 3-10 T3 Market Market Share by Supplier, RMB mil Table 3-11 T4 Market Market Share by Supplier, USD mil Table 3-12 T4 Market Market Share by Supplier, RMB mil Table 3-13 Zones/Regions in China Table 3-14 Market Size by Region, USD mil. In Table 3-15 Market Size Forecast, USD mil., Table 3-16 Market Size Forecast, RMB mil., Table 4-1 Total Sales Value by Key Supplier, (USD mil.), Table 4-2 Total Sales Value by Key Supplier (RMB mil.), Table 4-3 Distribution Sales Value by Key Supplier (USD mil.), Table 4-4 Distribution Sales Value by Key Supplier (RMB mil.), Table 4-5 Project Sales Value by Key Supplier (USD mil., %), Table 4-6 Project Sales Value by Key Supplier (RMB mil., %), GIM Research 2013 Copy Right

7 LIST OF FIGURES Figure 2-1: Map of China... 4 Figure 3-1: China s Urban New Construction Figure 3-2: Quarterly Property Investment, Figure 3-3: Quarterly Growth Rate of Property Investment, Figure 3-4: WSS Market Size and Growth Rate (USD mil., %) Figure 3-5: WSS Market Segmentation by Tier in Figure 3-6: Market Breakdown by Region Figure 3-7: Market Share by Region, in %, Figure 3-8: Market Share by Channel (%) Figure 3-9: Market Size and Growth Rate Forecast (USD mil., %) Figure 3-10: China s Property Investment Growth and Breakdown by Building Type Figure 3-11: China s Property Investment Shares by Building Type Figure 3-12: Hotel Opened in 2012 According to Star Classification Figure 3-13: Share of Hotel Opened by Star Classification in Figure 4-1: Market Share by Supplier, Figure 4-2: Product Distribution Market Share by Supplier, Figure 4-3: Project Sales Market Share by Key Suppliers (%), Figure 5-1: WSS Channel Structure Figure 6-1: Supplier Cost Structure for WSS Distribution Channel Figure 7-1: Three Established Production Bases in China Figure 8-1: TCL-Legrand s WSS Product Sales Revenue, USD mil., Figure 8-2: Feidiao s WSS Product Sales Revenue, USD mil., Figure 8-3: Chint s WSS Product Sales Revenue, USD mil., Figure 8-4: Schneider Electric s WSS Product Sales Revenue, USD mil., Figure 8-5: Panasonic s WSS Product Sales Revenue, USD mil., Figure 8-6: Siemens WSS Product Sales Revenue, USD mil., GIM Research 2013 Copy Right

8 LIST OF APPENDIX Appendix: A WSS Manufacturer List Appendix: B Background Information, Economic and Construction Statistics GIM Research 2013 Copy Right

9 1 MARKET AND STUDY SCOPE DEFINITION 1.1 MARKET DEFINITION AND STUDY APPROACH Market Definitions For this report, the wall switch and socket (WSS) market has been defined by a broad range of products which includes ordinary switches, electrical sockets, and control buttons that are utilized in a diverse range of applications. These products are extensively used in residential, commercial and industrial buildings, and because of the substantially varied needs of these markets, the product quality, safety, price and appearance of WSS products are highly specialized for their end users intended use. Please note the electrical sockets sold to residential end users, or sold by the WSS business unit of each supplier are included in the WSS market as we have defined whereas RJ45 or RJ11 information outlets sold by structured cabling companies to office buildings, commercial buildings, or data centers are not included as these are defined as connectivity products within the structured cabling market. We have calculated market size by adding together the sales revenues of suppliers, excluding 17.5% VAT, however this estimate of market size does not take into account any value added by distributors and contractors, since this varies by case and is subsequently impractical to calculate. Additionally, our market size figures also include counterfeit products sold in the market. Counterfeit products, are also referred to as non-standard products, and are quite common on the open market, as has been the case in China for many years. Various small-scale local manufacturers still exist, mostly in eastern and southern China, although the number of these manufacturers and the quantity of products sold by them has dropped significantly in recent years due to turbulent material price fluctuations, as well as increased competition from legitimate suppliers. Counterfeit products primarily target the lowest-end market segment and are sold through retail channels or for projects Research Methodology The methodology we have chosen for this study is a hybrid of a structured approach and an unstructured approach: the former relies on a logical, sequential, step by step process that follows a research plan based on objectives, while the latter deeply explores the radical factors which have affected this market and seeks to gauge the marketing performance of different brands. The majority of the research carried out for this study relies on qualitative methods, face to face in-depth interviews and telephone interviews. GIM Research 2012 Copy Right Page 1

10 The results of this research project are based upon dozens of interviews with international and local WSS company suppliers, distributors and retailers across the country in the beginning of MARKET SEGMENTATION METHODOLOGY In this report, we have subdivided the market into 4 tiers by analyzing 2 critical dimensions: product pricing and positioning. Tier 1 (T1): the high end, luxury market, the majority of which are imported directly from the overseas market. The market price of a 1 gang 1 way switch in this tier averages over 100 RMB, and the product used usually in the five-star luxury hotels, entertainment center or very high end residential buildings. Tier2 (T2): this tier consists of the high end and middle high end market that is populated primarily by the middle high end, but locally produced offerings from international brands but is also home to some high end local brand offerings. The market price of a 1 gang 1 way switch in this tier averages between RMB. Actually the majority products in this tier are priced at the range between 25-40RMB, not common in the market the one gang switch product price at between range in the market. Tier 3 (T3): the mid-range market that includes middle ranged and low end, international brand products and the key category, local brand products. These products account for the lion s share of quantity and revenue in a WSS company s product portfolio. The market price of a 1 gang 1 way switch in this tier averages between RMB. Tier 4 (T4): the low end market that caters to the cost-conscious, rural market. Local brands dominate this segment. This segment even includes products which have zero branding on product packaging. The market price for the 1 gang 1 way switch is below 10 RMB. These products are usually produced by small sized local manufacturers, and then sold in the remote rural market, or purchased by residential building developers to install into housing construction projects as a temporary measure until house buyers install their own interior decorations. Several large sized WSS manufacturers, both internationals and locals have the capacity to supply the needs of the entire Chinese market. Most divide total demand by segment and choose the regions which the company is best suited at serving. GIM Research 2012 Copy Right Page 2

11 1.3 WSS PRODUCT COVERAGE WSS products, also known as electrical accessories in China, refer to electric control devices for switches and sockets, and other related categories of electrical connectors for use in residential and commercial buildings (this excludes networking/connectivity products and intelligent lighting switch modules). We exclude these products because they are managed by differing business units and are sold through different channels. In the Chinese market, we have several series/sized product series, including 80 series, 86 series and 120/118series. 86 series: standard size: 86mmx86mm, 86 series switch and socket is the most popular and commonly used products sold in the whole Chinese market. 120/118 series: standard size: 120mmx74mm, or 118mmx74mm, these sized switches and sockets are originally from Japan and are currently common in Zhejiang, Anhui and Hubei provincial markets, but seldom seen in other regional markets. 80 series: is the European standard size product, usually imported from EU country, used by the high end hotel or residential building. The product is not available in the public market. The products covered in this report include: 1 Gang 1 Way Switches 1 Gang 2 Way Switches 2 Gang 1 Way Switches 2 Gang 2 Way Switches 3 Gang 1 Way Switches 3 Gang 2 Way Switches 10A 3 Pin Sockets 16A 3 Pin Sockets 10A 2/3 Pin Sockets 10A 2/3 Pin Socket with Switches 1 Gang TV Sockets 1 Gang Telephone Sockets 2 Gang RG45 Sockets(residential use) Hotel Products: Door Bell switch, Key Card Switch, Shaver Socket, etc. Blank Plate Others GIM Research 2012 Copy Right Page 3

12 2 EXECUTIVE SUMMARY Figure 2-1: Map of China Source: Market Growth Slowed to Only 5% in 2012 After two years of strong growth in 2010 and 2011, the Chinese wall switch and socket (WSS) market posted a sharp slowdown in growth in Total WSS market is valued at 2.0 billion USD, with an annual growth rate of 9.9% in USD terms, but taking into account both price increases (averaging around 2.0%) and appreciation of the RMB to the USD during 2010 (calculated at 2.6%), the WSS real growth rate was estimated to be around 5.3% in terms of actual WSS volume sales. The more subdued performance of the WSS market can be attributed to the general slowing down of real estate investment growth combined with government policies from all levels to counter increasing housing prices. Sustained Property Investment Growth, with a Slow Down in the Residential Sector China's economy is slowing down, and the country is at a key turning point in terms of transforming its fast growing economy into a stable and better quality growth model. In 2012, China's economy grew at its slowest pace in 13 years, GDP amounted to 51.9 trillion RMB or 8.25 trillion USD, up 7.8% compared to the previous year. Total fixed asset investment was trillion RMB, an increase of 20.3%, but 3.6 % less compared to The investment in domestic real estate development reached 7.18 trillion RMB, an increase of 16.2%, down by 11.9% compared with Of this amount, residential buildings accounted for 4.94 trillion RMB with an increase of 11.4% and down by 19.8% compared with The sharp drop in growth momentum from investment in the residential real estate sector is likely to have a strong impact on the future WSS market development. GIM Research 2012 Copy Right Page 4