2020 Annual Report on China's Switch Socket Market

Overall market overview

The demand for electric switch sockets is closely related to the development of real estate. 2014 and 2015 are the prosperous periods of real estate. Therefore, the overall market for switch sockets is growing rapidly. Among them, numerous small switch socket manufacturers have emerged. By the end of 2017, the market size of switch sockets reached 199.70. 100 million yuan, and then the growth rate gradually flattened out.

Since 2018, real estate policy regulation has continued to tighten. In 2019, real estate in first- and second-tier cities has gradually entered the stock market, and the growth rate has slowed down. The beginning of the spring of 2020 will be affected by the new crown epidemic, the building materials market will be closed, construction sites will be suspended, logistics will be suspended, and the retail market will be greatly affected. The market demand for engineering projects is delayed, but it is expected that the impact on the whole year will not be significant. Considering that the real estate industry is one of the stabilizers of the economy, the purchase restriction policy in 2020 may be relaxed. Light switch socket will be delayed for about half a year to one year after the start of the real estate. It is expected that the switch socket market will grow at a certain rate in 2021.

Summary of hot topics in 2019

Retail growth is sluggish, project market goes up. In recent years, the proportion of hardcovered houses has continued to rise, and the engineering project market has greatly squeezed the retail market. The national and regional engineering markets have seen significant increases. In 2019, the overall retail market of power switch socket has fallen by more than 10%. In order to make up for the gap in the retail market, major brands have made efforts to attack real estate KA customers, expand staff, establish professional teams, launch new products and provide more flexible strategic prices.

The trend of channel sinking is obvious, and the resources of high-quality agents continue to expand. In order to seek new growth points, many manufacturers are constantly exploring the third and fourth tier areas, and high-quality agent resources have become the targets of many manufacturers. Some manufacturers will sink their retail and engineering channels to the city level, and some retail to the county level, expand agents and distributors, and increase channel coverage of modern sockets in third and fourth tiers and weak areas.

Smart home has become a new focus of manufacturers. After three to five years of market cultivation, the market for smart homes has gradually increased. In 2019, major switch socket brands have launched smart switch socket. Some switch manufacturers have launched smart door lock products to initially test the smart home market; some switch manufacturers provide whole-house wired smart solutions, which are currently costly. The main customer groups of wired solutions are banks, governments and other public institutions, as well as some villas The market capacity is relatively small. Some manufacturers have launched wireless smart single products like smart life light switch, which can be applied to the intelligent upgrade and transformation of new and old houses. Other single products can be expanded and linked later, with low use threshold and high product scalability, which are suitable for ordinary consumer groups. Smart sockets and switches have facilitated people’s life a lot. Wireless wifi controlled power switch can reduce the trouble of rewiring, which is fast, simple and safe. Pir sensor light switch is also used widely to save energy and protect environment.