Consumer Electronics in China

Consumer electronics in 2025: The big picture

In 2025, retail volume sales of consumer electronics in China continued to rise, driven by significant factors that reshaped consumer behaviour and market dynamics. As income levels increased and lifestyles evolved, consumer demand for consumer electronics became more diverse and sophisticated. Chinese consumers were no longer solely focused on basic functionality; instead, they placed a greater emphasis on intelligence, convenience, innovation, and brand value. This demand for consumption upgrading was a key driver of growth in sales of high-end and smart consumer electronics. Technological advancements, including the widespread adoption of 5G technology, artificial intelligence (AI), and the internet of things (IoT), in addition to more advanced display technologies (like Mini LED and OLED) facilitated the continuous iteration and improvement of products. These innovations not only enhanced product performance and the user experience, but also attracted a substantial number of consumers to upgrade their existing devices. The popularity of smart home devices also played a crucial role in boosting sales. Smartphones, smart wearables, and smart TVs, among others, gained significant traction due to their ability to interconnect seamlessly, thereby enhancing the convenience and comfort of daily life. Overall, consumer electronics in China saw robust growth in 2025, underpinned by these technological and socioeconomic developments. However, not all consumer electronics categories saw growth in 2025. For instance, with the improving functions of smartphones, this reduced the need for separate devices such as in-car navigation and digital cameras. Meanwhile, home audio and cinema declined due to the increasing preference for portable devices for music and video entertainment.

2025 key trends

In recent years, the deepening application of AI and IoT technologies has transformed consumer electronics in China. Smart home devices, including smart speakers, smart TVs, and smart appliances, have increasingly incorporated AI capabilities, enabling them to offer personalised services that cater to evolving and specific consumer needs. This integration has not only the enhanced user experience, but has also driven the widespread adoption of these smart products, as they seamlessly interconnect through IoT technology, thereby improving overall convenience and comfort in daily life. Nevertheless, it should be noted that smart speakers have faced criticism from some quarters for their weak voice interaction capabilities and limited AI utility. Many devices struggle with multi-step commands and complex queries, leading to user frustration and reducing their practicality beyond simple tasks such as playing music or checking the weather.

Competitive landscape

Huawei Technologies Co Ltd and Xiaomi Technology Co Ltd were the leading companies in consumer electronics in China in 2025, both experiencing rising retail volume sales and achieving very similar shares. However, Huawei just about managed to hold onto its lead. The company has consistently increased its investment in technological innovation, particularly in 5G, AI, and IoT, which has significantly bolstered the market competitiveness of its products. Huawei's advancements in 5G smartphones, smart home devices, and other consumer electronics have consistently improved in performance and stability, attracting a substantial consumer base. As a globally renowned brand, Huawei cultivates a strong brand effect, establishing a reputation for high quality and high performance, especially in smartphones, wearable devices, and smart home products, which contributes to a large base of loyal users. Moreover, Huawei actively promotes its brand on a global scale, enhancing market awareness and consumer trust. The company has expanded its consumer electronics product line, encompassing areas such as smartphones, tablets, smart TVs, smart speakers, and wearable devices. Additionally, Huawei's market presence in China and globally has deepened, particularly in second-tier and lower-tier cities, where it has achieved significant growth, further solidifying its position.

Channel developments

Retail e-commerce remained the dominant distribution channel in consumer electronics in retail volume terms in 2025, and it also saw the strongest share growth. The increasing popularity of shopping online, and the continuous improvement of e-commerce platforms, such as Taobao, JD.com, and Pinduoduo, led consumers to favour online channels for purchasing consumer electronics. These platforms provide a convenient shopping experience, enabling consumers to browse, compare products, and perform price comparisons at any time and from anywhere, while also benefiting from fast delivery services. In 2025, e-commerce platforms continued to hold large-scale promotional events, including the Double Eleven and 618 shopping festivals. These events not only spurred sales of consumer electronics but also attracted a significant number of price-sensitive consumers through coupons, discounts, and other promotional activities, allowing them to acquire high-quality products at reduced prices. The advancement of technology further enhanced the user experience, with innovations like augmented reality (AR) and virtual reality (VR) providing consumers with a more intuitive understanding of products before making a purchase. Additionally, intelligent recommendation systems helped consumers find products of interest more accurately, thus increasing the conversion rate of purchases.

What next for consumer electronics?

Retail volume sales of consumer electronics in China are forecast to experience robust growth over 2026-2030, driven by the rising popularity of smart home devices and wearable technology. These products, which seamlessly interconnect with other devices, such as smartphones, tablets, and televisions, have significantly improved consumers’ quality of life, making them a key catalyst for market expansion. The younger generation, with a growing interest in smart, personalised, and innovative products, has emerged as the primary force in consumer electronics, providing enthusiastic support for new and creative offerings.