Journalist Investigation: Multiple Factors Drive Home Appliance Price Increases, What Changes Will the Industry Landscape Experience?

Ask AI · How Will the Value War Change the Competitive Landscape in the Home Appliance Market?

Beijing, April 4 — (CNR) According to a report by CNR’s “World Finance” on the Economic Channel of the Central Radio and Television Station, the reporter has just learned that starting from April 1, the domestic home appliance industry has kicked off a new round of price increases. Supply prices for TVs, air conditioners, refrigerators, and washing machines are generally raised, while major kitchen appliances such as range hoods and stoves have seen the highest increases reaching 20%. However, when you walk into stores, you find that terminal retail prices seem not to have changed noticeably yet. What are the deeper reasons behind this wave of price hikes? When should consumers make their purchases?

Acting as a consumer, the reporter visited home appliance stores and online platforms and found that although price tags in the retail market have not yet been fully adjusted, the rumor of “price increases in April” has already spread across major stores. A sales representative at one appliance retailer said that price hikes are inevitable, but for now, they can “wait a bit.”

The sales representative said: “It’s said prices will go up, but the stockpiling from before hasn’t been fully digested yet. Once the inventory is cleared, because the cost has gone up, if you place a new order, it will be more expensive—so it definitely has to be sold at a higher price. For appliances like refrigerators, air conditioners, and water heaters that use copper materials, the increase might be slightly higher, about 5%.”

A customer service representative from an e-commerce platform revealed that some appliance prices are already quietly rising: “From what I understand, over the past two days, some customers have said that in April, appliance prices are higher than in March.”

A sales representative at a physical store attributed the price increases to industry conventions and raw materials: “Air conditioners will definitely go up in price—every year it’s the same. (The price increase) is standard. Plastic products might also see a higher price.”

In the face of expectations of price increases, sales representatives generally advise consumers to lock in prices in advance, and many stores have also launched flexible price-locking services to give consumers some room to buffer.

A sales representative at an appliance store said: “Every year in March and April, we rush to grab market share, and the prices are relatively low. The model you like can be reserved first. After it’s reserved, delivery can be arranged for any time. If in the end you don’t want it, you can return it—no problem, and there’s no charge.”

So is this round of price hikes just a short-term fluctuation, or a turning point in industry trends? Liang Zhenpeng, a veteran industrial economist, provided a clear interpretation from three perspectives: cost, chips, and policy.

Liang Zhenpeng said: “First, international oil prices have surged, leading to a clear increase in the cost of home appliance raw materials. Second, the supply and demand for storage chips are severely imbalanced; the market is in serious shortage, which has led storage chip prices to rise dramatically—historically. Third, under policy guidance, the newly announced national subsidy policy for 2026 makes it explicit that only home appliance products with first-tier energy efficiency and first-tier water efficiency will be subsidized, while low-efficiency and low-end models are phased out. This naturally drives adjustments in the overall product structure of home appliances, resulting in price increases.”

If it’s a trend-driven price hike, why do consumers still not feel it clearly right now? Liang Zhenpeng analyzed: “The transmission timeline for home appliance prices should be that online e-commerce channels start the price increases first, then they roll out in batches and gradually pass the impact on to offline physical store channels. At present, offline physical stores are still in a buffer period, because they still have a large amount of inventory, so they can offer price-locking services. Since the price increases haven’t happened yet, if consumers place orders in advance, offline physical stores can settle according to the previous prices.”

However, how long can this ‘buffer period’ supported by inventory last? Meng Qiuyue, a home appliance analyst at Zhuochuang Information, provided a timeline from the raw materials side: “Rising oil prices directly raise the costs of plastic casings and components for home appliances. PP (polypropylene), as a core raw material, is currently priced at 9,175 yuan per ton, up 40.08% compared with the end of February. And downstream low-priced PP inventory will be basically digested by late April and the early part of May. After that, as companies follow up with replenishing inventory at higher prices, home appliances are expected to see catch-up price increases across all categories from the end of the second quarter to the third quarter. Kitchen appliance categories with a high proportion of PP usage may be the first to see price increases.”

Against the backdrop of continuously rising costs, the competition logic in the home appliance industry is also undergoing profound changes. Liang Zhenpeng said the industry is shifting from the past, where competition was purely about price wars, to value-based competition with value at the core.

Liang Zhenpeng said: “In response to the trend of price increases, the strategy for leading brands is to upgrade products toward higher-end positioning, enhance services, and build ecosystems—while increasing the proportion of high-end models on the product side. From the supply chain perspective, this means building the upstream ‘core’ capabilities yourself. From the service side, it means offering services such as trade-in programs and free installation. The logic for leading brands is not to lock in market share by cutting prices, but to lock in customers through a value war. For small and medium-sized enterprises, their response can only be to reduce functions, reduce costs, reduce channels, or shift direction.”

For consumers, is this a good time to buy home appliances? Meng Qiuyue advised: “For consumers with urgent needs, it’s recommended to seize the current window and buy in advance to lock in prices. For consumers without urgent needs, they can observe and wait for promotions toward the end of the third quarter, but they may bear the risk of price increases brought about by an escalation of geopolitical situations and the sudden surge in oil prices.”