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China's Home Appliance Consumption Going High-End
May 13, 2005
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China has entered a new era in the consumption of home electrical appliances, according to the latest statistics from Chinese-based appliance retailers Gome and Suning.

High-end products became hot spots, according to Gome. Liquid crystal display (LCD) televisions and plasma display panel (PDP) televisions have replaced traditional TV sets to become the mainstream products, taking up 25 percent of total sales.

Suning said more than 50 percent of consumers have upgraded their electrical appliances and it has expanded its retail space for products such as flat-panel TVs, mobile phones, large storage fridges, laptops, digital cameras, and digital video players.

Suning reported that sales of LCD and PDP televisions have increased 40 percent year-on-year, with sales of double-door fridges and cylinder washers increasing 60 percent.

Gome and Suning have introduced the promotion model of moderate prices for high-end products. Some brand air-conditioners sold for 398 yuan (approx. U.S. $48) each in Gome, handsets with color screens sold for several hundred yuan, digital and high-resolution televisions sold for less than 1,600 yuan (approx. $194), and LCD and PDP TV recorded a 77-percent price drop. (XIC)

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