The improvement in the level of residents’ consumption has served as a booster to boost the quality of the Chinese consumer market. In the context of supply-side reforms, living appliances that are convenient, practical, and functionally subdivided into major selling points have been buoyed in recent years. Statistics show that the number of domestic household appliances in developed countries is about 40, while the average household ownership of Chinese households is only about 10 kinds. The industry generally believes that in 2015-2025, China’s household appliances market will usher in Explosive growth period.
China Yikang data shows that in 2017, the total size of domestic electrical appliances in the Chinese market reached RMB 126.7 billion, a year-on-year increase of 17.2%. Both the scale and the growth rate are very impressive. Among them, electric pressure cookers, electric baking pans and other kitchen cooking appliances are small. Household electrical appliances grew by 5.8%, kitchen appliances such as cooking machines and mixers grew by 20.2%, household appliances such as vacuum cleaners and humidifiers increased by 21%, and personal care appliances such as hair dryers and shavers increased by 29.1%. Product Features The new iterations that were created by the subdivision, and the upgrading of revenues, have become two major factors that have accelerated the popularity of household appliances.
Small kitchen appliance profit differentiation High-end upgrade competition for share
After experiencing high-speed popularization in the past ten years, China’s home kitchen appliances are now entering the replacement period, and the demand for soybean milk machines, induction cookers and other categories is increasingly narrowing, and innovative products that can provide more delicate taste and a more healthy life are replaced. Food machine, steaming oven and so on.
As a leading manufacturer of small household appliances in the kitchen, Jiuyang Group achieved revenue of RMB 7.248 billion in 2017, and net profit of RMB 698 million, which was a year-on-year decrease of 0.92% and 1.26%. Relying on Soymilk, the fist product, Jiuyang was founded from scratch. Including rice cookers, induction cookers, water purifiers, large kitchen appliances, etc. 9 categories of product lines.
However, at present, Nine Yang seems to be stuck in the bottleneck of development, and the growth of main business such as soybean milk machine and induction cooker is sluggish. According to the annual report, Jiuyang Induction Cooker's revenue fell by 13.3% in 2017, and the nutrition industry's sales fell by 4.47%. The sales of electric pressure cooker declined, and rice cookers increased. After a slowdown, the soymilk maker gradually stabilized after experiencing a decline in 2016. However, there are also some highlights. Taking the example of the cooking machine, the revenue growth exceeded 50%; the water purification and the kitchen appliance double-digit growth; the growth of western-style small household appliances 6.4%, to a certain extent, hedged the 'weakness' of the old product line.
Analysing the growing status of each category, it is easy to see that low-end, low-cost, small household appliances such as induction cookers, coarse-grinding soya-bean milk makers, and general-purpose rice cookers are being discarded by the Chinese, and that they are replaced by food processors, IH rice cookers, and steam ovens. More convenient upgrades. Han Yang, director of the board of directors Han Run believes that 'the Chinese market has shifted from price competition to value competition, and quality appeal has replaced price demands.' Balance is high, the proportion of products at the lower ends, becoming the top priority for Nine Yang, To this end, the company proposed the strategy of 'value ascending' and adopted corporate resources to 'high-quality, high-value, high-value' products. They introduced new dishes such as broken dishes, rice cookers, and air fryers to regain growth.
In addition, compared with other business partners, Jiuyang has a relatively small business structure consisting mainly of small kitchens. For this reason, they have successively arranged clean water, smoke stoves, dishwashers and other kitchen appliances. In the second half of 2017, Jiuyang was more Further introducing the "kitchen + living room" dual-drive strategy to obtain Shark Ninja's brand and products in China under the control of the Shark Group in the United States, in order to develop cleaner home appliances such as vacuum cleaners and purifiers; At the same time, it has combed its own channels to determine the channel strategy for 'Where is the customer flow and where is the business'? Actively enters into the Shopping Mall and the e-commerce network big-line business expansion. By the 1st quarter of 2018, the overall operating performance of Jiuyang improved. The company achieved revenue of 1.558 billion yuan and net profit of 147 million yuan, a year-on-year increase of 5.57% and 7.87% respectively, establishing a good start for achieving the 8% growth target this year.
Supor, which is intensively intertwined with Nine Yang's business, achieved a good growth in 2017 with revenue of 14.19 billion yuan and net profit of 1.31 billion yuan, a year-on-year increase of 19% and 21%. Compared to Jiuyang, Supor has a business scope. It is relatively rich and has four categories of products, including kitchen utensils, kitchen appliances, kitchen appliances, and household appliances. Brokerage research report believes that 'the robust position of the cooking industry in line with the rapid growth of electrical business, promoted Supor's revenue growth.'
In 2017, the market share under Supor's kitchen wire reached 29.3%, ranking the second in the industry; sales of household products such as purifiers, hanging ironing machines, and vacuum cleaners increased rapidly, contributing over RMB 500 million. With the second phase production of Shaoxing Base, the company The proportion of home appliances will also increase.
As a company with a foreign investment background, the synergy between Supor and its parent company, France’s SEB, has also become increasingly prominent. On the one hand, in 2017, Supor's export orders have reached 3.98 billion yuan, an increase of 13% year-on-year, while domestic sales have been 10.2 billion yuan. The share ratio has become 2.5:1; On the other hand, the high-end brands WMF, LAGOSTINA and KRUPS introduced by French SEB have injected new blood for Supor's high-end transformation. In 2018, the Supor Publicity Department established a subsidiary Jiangzhe Futengbao, focusing on operations. The expansion of these three brands in the Chinese market.
In the domestic market, the consumption upgrade brought new opportunities to Supor. In 2017, the company’s domestic sales increased by 22% year-on-year. The sales of vacuum-breaking machines were optimistic. Continuous innovation also pushed up Supor's product prices, and raised raw material costs. , Formed a certain resistance. In addition, in the channel, Supor also improved the layout, focusing on the first and second-tier cities in the chain, Shangchao as a high-end new product promotion window; to improve the three-four market terminal coverage and single-store sales output At present, Supor has already covered 100% of the county-level and above markets nationwide; it has stepped up e-commerce channel construction and is expected to stay flat with the offline line in the future.
In the first quarter of 2018, Supor realized operating income of 4.89 billion yuan, an increase of 21.2% over the previous year, and a net profit of 450 million yuan, a year-on-year increase of +21.9%, achieving a stable growth at a high base.
Popularization of Household Cleaning Appliances to Advance Occupation
In a wide range of household appliances, household cleaning products such as vacuum cleaners, purifiers grow rapidly.
As the leading domestic clean electrical appliance company, Leike Electric met the 'Icefire Twins' in 2017. In 2017, Lake achieved a revenue of 5.71 billion yuan, a year-on-year increase of 30.46%. However, due to the severe exchange rate fluctuations and sharp increase in raw materials. At the price, corporate profits dropped sharply to 341 million yuan, a year-on-year decrease of 27%. The annual report disclosed that only one exchange loss of Lake Electric was as high as 160 million yuan, while the loss caused by raw material price increase was about 400 million yuan. In 2009, Lake Opened the transition from export to domestic sales. However, the current export business still accounts for a large proportion of the company. The ratio of domestic and foreign sales is about 1:4.
In the face of the media, Nik Zugen, chairman of Lake Electronics, once stated that in the more than two decades of working life, Lake has accumulated mature technology and stable quality, but lack of independent brands has always been the pain of the enterprise. With the domestic vacuum cleaner market With the opening, Lake began to attack the domestic market with its own brand, and created the brand of “Penny Springs” water purification brand. In 2016, Lake's own brand growth rate reached 77%, and in 2016, it reached 100%, growing with 'leaping' style. It is no exaggeration to describe. The instability of international trade and the flourishing domestic market have strengthened Ni Zugen’s determination to open up the domestic market.
At present, the ratio of vacuum cleaners, air purifiers and water purifiers is about 5:3:2. In the vacuum cleaner market, Lake ranks first among domestic vacuum cleaner brands with an average price of 1950 yuan, and the market accounts for about 27%; The net and net market share is about 14%, which is basically in the top three of the market; the water purification business is also growing steadily.
Compared with the vacant net products affected by haze, the capacity of the vacuum cleaner market in China is fast and stable, providing a lasting impetus for the development of the enterprise. According to industry online data, the current vacuum cleaner penetration in China is less than 15%, but the industry The nodes gradually approached. In 2015-2017, the domestic retail value of vacuum cleaners realized a compound growth of 30%+. According to Hong Jiran, an analyst at Caitong Securities, the rapid popularity of vacuum cleaners took place during the period of per capita GDP spanning over US$12,000 in reference to changes in the Japanese and Taiwanese markets. According to the current domestic income growth rate, the per capita GDP of domestic residents may exceed this threshold between 2022 and 2025. 'We forecast that by 2022, the domestic household vacuum cleaners will have an inventory of 21%, which will exceed 40 million units, compared to 2017. More than double the size of the year. '
The broad prospects of the market have also led to the opening of new layouts by companies including Meimei, Philips, Dyson, and Puppy Appliances. In the second half of 2017, Midea will separate its clean appliances from the original kitchen and electric system and build on the original industry foundation. On the integration of Toshiba and U.S. eureka, the two major brand strengths, the establishment of the Group's tenth division - the Clean Electric Division, is the best interpretation. A media observer close to the United States points out that 'beauty is a market sensitivity. A very strong company, when it sells a certain category, indicates that this category is about to usher in a broad space for development. ' In addition, Coworth, which has been listed on the first launch, and puppy electronics actively seeking IPO are also major domestic clean appliances. Brand.
Personal care appliance category, quality double upgrade
In the age of economy and value economy, personal care appliances became essential for life, including hair products, electric razors, electric toothbrushes, and other categories, including rapid expansion. As a small electric appliance faucet, Flyco Electronics achieved revenue in 2017. 3.853 billion yuan, a year-on-year growth of 14.55%; net profit of 835 million yuan, an increase of 33% over the same period last year.
With the structural changes in the mainstream consumer groups, there is a market segmentation, functional differentiation, and standardization trend for each appliance. Taking Flying Branch as an example, in 2017, the introduction of humidifiers has been strengthened in addition to traditional razors and hair products. New products such as health scales, electric toothbrushes and beauty electric power. As a light asset company focusing on R&D and sales, with the rise of a protective market, Flyco began to focus on the manufacturing sector. It invested 440 million yuan in the expansion of Songjiang last year. The base, it is expected that after the completion of the project, it will add 1,360 pieces of electrical appliances with an annual production income of 857 million yuan.
In terms of categories, in 2017, Flyco's razor business revenue was 2.6 billion yuan, its revenue accounted for about 67%, average customer unit price was 42 yuan, gross profit margin was 45%, and its hair dryer sales was 590 million yuan, accounting for about 15 revenues. %, Average price increased by 11.25%, sales volume decreased by 1.22% year-on-year; Other small home appliance business revenue reached 640 million, up 16% year-on-year.
In terms of product structure, the company's products are relatively low-end, and the company currently targets the target population at the stage of demand introduction. In the first-tier and second-tier markets, in the medium to long-term, high-end small home appliances with higher quality and higher prices are more suitable. Being favored. With high-end brands such as Philips and Braun, the price of Flying Products has moved upwards and trends. With the promotion of consumption upgrade, the flying brand has continued to be branded and high-end in recent years, and the logic of average price increase is expected to continue.
At the same time, Feike optimized the sales channels, and on the one hand, it was committed to canceling the wholesale distribution mode under the Yiwu line in order to manage the channel-sale model of offline wholesalers and terminal distributors, and increase the proportion of e-commerce investment. In 2017, the e-commerce business realized Revenue was RMB 2.015 billion, a year-on-year increase of 35% and accounted for 52% of revenue. Recently, Feico launched multi-category products in US UL and European GS certification work and patent search in key overseas markets, and plans to expand overseas market sales.
For the future, Flyco takes Philips as the target of growth, and hopes to become an international brand with a wider audience through R&D and innovation.
According to Ha Xiaolei, a researcher in the China Life and Time Electric Appliances Division, as consumer demand saturates, consumption upgrades are spreading to the category of small appliances for life. On the one hand, for traditional categories, people are pursuing newer and higher-priced products. High-quality purchase tilt; On the other hand, category expansion is also affected by social, cultural, environmental and other factors, such as haze environment, air purifiers and vacuum cleaners began to enter the Chinese family. At present, Life Electric has formed a scale market Under the conditions of high demand and high growth, the scale of 100 billion yuan is only the tip of the iceberg. We also expect this 'magic bean' to eventually grow into a giant tree.