Xiaomo: Weak retail sales data for mainland home appliances in September reflect price pressure and weakening terminal demand

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that AVC data showed that retail sales data for China's home appliances in September was weak. Retail sales fell 13% year on year, further deteriorating from July and August, which fell 9% each, even though the comparison base was significantly lower. In terms of market share, Haier Smart Home (06690)'s total market share rose to 26.6%.

The bank pointed out that the average sales price fell 11% year on year, and sales volume fell 2% year on year, reflecting the weakening of price pressure and terminal demand. The data reduced the bank's confidence in short-term domestic demand. In particular, third-quarter results are expected to be scrutinized more closely. The bank will not change its constructive view of the industry due to monthly data, but it has proven that the burden has increased. Management's comments on the third quarter results and October sales will be key follow-up data points.