The Transformation of China’s Soundbar Market: An In-Depth Analysis

Summary:

• China’s soundbar market will experience a significant decline in sales by 2025, with a projected drop of 17.2% year-on-year.
• Domestic brands like Huawei and Xiaomi are gaining traction, disrupting the dominance of foreign brands.
• The increasing focus on audio-visual integration is reshaping market dynamics and consumer preferences.

According to recent data from Luotu Technology, the landscape of China’s soundbar market is set for a substantial transformation by 2025. The omni-channel market is anticipated to reach only 740,000 units, revealing a notable decline of 17.2% from the previous year. This impending shift suggests a necessary recalibration within the industry as brands adapt to evolving consumer demands.

A remarkable entry is being showcased by domestic TV brands, notably Huawei and Xiaomi, which have successfully penetrated the top ten in market rankings. Their comprehensive approach has effectively disrupted the long-standing stronghold of foreign competitors.

The impetus for this market reconfiguration is partially attributed to national subsidy policies, which have facilitated market clearing. This has accelerated the exit of low-end, white-label products priced below 1,000 yuan. Furthermore, the landscape of e-commerce is shifting; emerging platforms have experienced a sales decline exceeding 20%, while traditional e-commerce channels are becoming the primary battleground for mid-to-high-end soundbar products.

In contrast, established foreign audio brands, such as JBL and BOSE, have been experiencing a collective downturn in market share. While companies like Sony and Samsung maintain their positions at the forefront of sales, they are facing burgeoning competition from their domestic counterparts.

Huawei and Xiaomi have effectively harnessed the trend of consumption upgrades. By leveraging their robust TV ecosystems, they provide a synergistic audio-visual experience that positions soundbars as essential complements to large-screen setups. This integration addresses the growing consumer preference for high-quality home audio-visual solutions.

Additionally, other domestic appliance brands, including Konka, Haier, and Zhuimi, are actively launching new soundbar products, signaling a broader commitment within the industry. Despite soundbars currently remaining in a niche market segment, there is a marked increase in interest from domestic appliance manufacturers aiming to identify a secondary growth trajectory. These companies increasingly recognize the critical role that advanced soundbars play in enhancing high-end audio and video enjoyment.

As consumer preferences evolve, the soundbar market is poised for a redefined trajectory. This competitive environment underscores the need for brands to adapt swiftly to maintain relevance and ensure sustained growth. Making informed decisions about product development and marketing strategies will be vital in navigating these changes.

Overall, it is evident that the soundbar market in China is undergoing a seismic shift. The convergence of domestic innovation and changing consumer expectations signifies a new era in audio-visual integration, challenging established foreign brands and promising an exciting landscape for the future.

For businesses looking to thrive in this environment, embracing trends such as family-oriented usability and enhanced compatibility with existing home entertainment systems will be crucial. The path forward may be demanding, but opportunities for growth abound for those ready to adapt to the new norms of consumer behavior.