The impact on the household industry in 2018 can be said to be very big. First, the real estate industry, which has always relied on for a living, was cold, followed by Internet penetration, the new concept proposed by the industry, and then the entry of capital giants, making the household industry begin to appear unclear. In the crisis filled industry reform, there are also opportunities.
      Faced with a series of changes in 2018, the home furnishings industry, which has been thriving and losing together with the real estate industry, has also caused a series of fluctuations. As a cyclical industry, the home furnishings industry has also ushered in a "new normal" of new and old kinetic energy conversion after enjoying a decade of real estate dividends. The kitchen appliance industry, as a sub sector of the home furnishings industry, has a relatively healthy profit margin and stability within the industry. However, as the real estate industry enters a slow growth cycle, the expectations of kitchen appliance enterprises are also changing, and the demand for updates in the future will gradually surpass the new demand. Taking the engineering market as an example, in recent years, the trend of refined decoration of commercial housing has strengthened, and the proportion of the engineering market in the company's revenue has increased. However, in the long run, this proportion cannot exceed 20%. The social demand structure is changing, especially in first tier cities where the demand for renewal has surpassed the demand for new additions, and this trend will gradually spread to other markets.
      From the current situation, although the kitchen appliance market has developed rapidly in recent years and has become a billion dollar industry, the high growth at such a scale is already difficult to sustain, and high consolidation is the mainstream trend. Faced with market contraction, capital speculators who entered on a large scale in the early stages will leave, and internal funds in the industry will face new risks. Without financial support, industry competition will intensify and face reshuffle. After a significant decline in the real estate market, the decline in the kitchen appliance market in 2018 was also expected. According to relevant statistical data, the sales area of existing houses in the new housing market decreased by 25% in 2018, while the future kitchen appliance market will still be under pressure.
      With the shrinkage of funds and the transformation of the market, the overall sales of the kitchen appliance industry in the home furnishing market, and even the entire home furnishing industry, will basically begin to shrink. This result undoubtedly has a huge impact on the industry. Due to different market pressures faced by each enterprise, industry competition will squeeze each other and compress their survival space. As industry giants continue to annex, some low-end products and small brands are eliminated.
      However, in the long run, the kitchen appliance industry will see more and more outstanding enterprises stand up after this industry reshuffle. In terms of future opportunities, it is undoubtedly beneficial for the industry and market.