china home appliance makers poised for strong growth on wage rises, urbanisation - home appliances manufacturers in china

Hong Kong, May 22 (Reuters)-
Due to rising wages and urbanization in China, Chinese home appliance manufacturers such as Qingdao Haier Co. , Ltd. and Midea Group are expected to achieve strong growth this year.
Unlike companies such as Gome Holdings Ltd. and Suning Commercial Group Co. , Ltd. , home appliance manufacturers are expected to surpass Chinese home appliance retailers, because they are largely not affected by the competitive online market, and e-
Business plan.
China's home appliance market is expected to reach 738 units. 1 billion yuan ($118. 40 billion)
Retail sales were estimated at 603 as of 2016.
5 billion yuan this year, 547.
According to Euromonitor, a consumer research firm, it was 5 billion yuan in 2013.
"One concern is that the real estate market is slowing (will affect)
Home appliance sales, but I think alternative demand is still very strong, "said Kelvin Wong, a Hong Kong-based equity research analyst at julius Baer.
China's consumer discretion department, including Wuxi Little Swan Co. , Ltd. and Zhuhai Gree Electric Appliance Co. , Ltd. , expects the overall profit to increase by 42% this year to reach 4-
Growth has risen from 26% last year.
Rising wages across China have spurred a growing middle class eager to improve quality of life in line with Beijing's shift to consumers --
The economy has grown from countries that rely more on exports.
So far this year, the latest revenue from home appliance manufacturers has shown strong growth, with Qingdao Haier, a subsidiary of Haier Group, the world's largest home appliance manufacturer, releasing 20 revenues.
Year-on-year increase of 3%-
Net profit for the quarter was 867. 5 million yuan.
China's rival Midea group said net profit jumped 148 in the first quarter. 5 percent to 2.
54 billion yuan, analysts expect
Annual gains rose 77.
5%, is the fastest growth rate since the group's listing in 2013.
Wuxi Little Swan and Gree Electric were also posted first-
Quarterly profit growth exceeded 50%.
The Little Swan's 2014 profit is expected to grow by 36.
7%, the strongest since 2010, and Gree is expected to rise 22.
4%, according to analysts.
While the outlook for home appliance manufacturers is positive, the competitive online market casts a shadow on the outlook for retailers.
GOME Electrical, backed by private equity fund Bain Capital, is expanding its business from traditional stores to online retail.
It says this week.
Quarterly profits jumped 252.
6% to 0. 268 billion yuan.
Analysts expect GOME
Compared with e-commerce, net business losses will shrink this year.
Net business loss of 0. 54 billion yuan in 2013.
Suning Commerce Group, its larger rival, reported sales of 433.
A loss of 5 million yuan in the first quarter, down 492 year on year.
Profits of 8 million yuan a year ago. Its e-
Business sales fell 26. 7 percent to 3. 3 billion yuan.
The benefits are obvious for those companies that are making their online strategy right. E-
According to KPMG's Global China business, business transactions in China are expected to reach $540 billion by 2015, accounting for about 10% of total retail transactions.
"I bought almost everything you can think of online.
I just bought a toaster from Taobao last month, "said Zhang cherie, an administrative assistant to an educational institution in Shanghai, referring to Alibaba.
Have online shopping sites similar to eBay.