On the 28th, an article titled "Why are home appliances stealthily raising prices?" was published on China's portal site Sohu.

The article pointed out that "voices are spreading in China that home appliances have become expensive without people realizing it." It stated that in the home appliance market, where "waiting would make it cheaper" was previously the norm, the phenomenon of "the longer you wait, the more expensive it gets" has begun to occur instead.

It was introduced that, as a story from a woman residing in Fujian Province, when she was recently gathering home appliances for her new home, she noticed the price of a dishwasher she was interested in had significantly increased. Even at the end of April, it was several hundred yuan (1 yuan = approximately 23 yen) higher than during last year's sale, and recently, even with various discounts applied, it had increased by more than 600 yuan (approximately 14,000 yen).

This situation is not just a feeling among some consumers, and posts such as "TVs, refrigerators, and air conditioners have all become more expensive" are successively appearing on social media. In fact, in China, since around spring this year, multiple manufacturers including Midea, Haier, Hisense, TCL, and Panasonic have reportedly raised their ex-factory prices, and in some cases, the price increase has reached 5-20%.

According to the article, the background is the soaring price of raw materials. Particularly significant is the price of copper, which has surged in the past year due to expanding demand from AI (artificial intelligence) data centers and the new energy sector. Copper is used in large quantities in compressors and piping for air conditioners, refrigerators, and washing machines, causing a significant impact on home appliance manufacturers. Furthermore, aluminum, plastic, and semiconductors for AI have also risen in price, and cost increases are continuing.

The AI home appliance boom is also becoming a new burden. Due to the rise in prices of high-performance AI chips and memory, home appliances equipped with "brains" such as smart TVs and high-function refrigerators are said to be more susceptible to the impact of cost increases.

However, the situation seems to be not just that. China's home appliance market has already completed its popularization phase, with major home appliances having largely spread to every household. As a result of maintaining sales through price competition, many companies have fallen into a state where "they sell, but don't make a profit." According to local media, approximately 60% of listed home appliance companies saw their net profits fall below the previous year's figures.

Amidst this, manufacturers are seen as shifting away from "sales wars through discounting" and moving towards securing profits. Industry insiders point out that "the surge in copper prices is merely a trigger, and the home appliance industry is beginning to transition from an era of 'gaining volume through price' to an era of 'protecting profits to survive.'"

On the other hand, the article points out that it is unclear whether consumers will readily accept the price increases. "Home appliances are durable consumer goods, and the option not to replace them because they are still usable is available. Therefore, in the future, while large manufacturers with strong financial resources will survive, there is also a view that small and medium-sized manufacturers will be exposed to even fiercer competition," it reported. (Translation/Editing by Kitada)