Data from market research institutes such as China Yikang and Ovid Cloud Network showed that the first quarter of this year saw a “cold winter” in the kitchen power market. However, high-end products and emerging cities performed even more 'bright-eyed', with bosses and other head companies vigorously expanding. , The kitchen market with competition is accelerating.
In the first quarter, the kitchen electricity market volume fell
Recently, AVC released total omnichannel data, showing that in the first quarter of this year, the retail volume of the kitchen appliance market was 12.8 billion yuan, down 6.1% year-on-year; retail sales were 13.669 million units, down 3.3% year-on-year. The overall amount fell, and the entire kitchen and electric industry was cold.
At the same time, the data released by China Yikang indicated that the retail sales of traditional kitchen electric range hoods, gas stoves, and disinfection cabinets were -16.7%, -7.5%, and -11.9% respectively in the 1-12 weeks this year. The offline market experienced a very cold environment, especially the expected spring home improvement season together with 3.15 sales, which did not give the market signs of recovery. At the same time, the growth rate of the online market further slowed down, taking the smoke stove as an example. The growth rate of retail sales in the market was 20.0%, 25.9%, and the growth rate dropped to less than 30%. From the seventh week to the 11th week, the smoke stove products all experienced negative market growth for five weeks in a row. The online market experienced reduced flow bonuses and Relatively low product prices and other factors caused by the bottleneck.
Analysts pointed out that from the perspective of the real estate market, since the middle and late March, in order to maintain the position that 'houses are used to live, not used for speculation', more than 10 cities across the country have issued regulatory policies, including restrictions on purchases. Restricted sales and Yaohao, the first set of differentiated measures such as superior purchase. It is precisely under the influence of the continuous regulation of the real estate market that the kitchen and electric appliance industry has entered a growth period.
Head companies buck the trend with high-end products
Boss Electric recently released its quarterly report this year. During the reporting period, the company achieved operating income of 1.592 billion yuan, an increase of 16.89% year-on-year; and net profit attributable to shareholders of listed companies was 312 million yuan, an increase of 20.05% year-on-year. increase.
According to the announcement, due to the increase in sales at the end of the reporting period, the agents played actively, and the net cash flow generated by the company's operating activities amounted to 558 million yuan, a year-on-year increase of 200.25%. The company expects the first half of this year to earn 658 million yuan to 777 million yuan. Increased by 10% to 30%.
The company's previously published annual report shows that in 2017, the market share of its five major categories, namely smoke, stove, consumer, embedded microwave ovens, and embedded steamer, ranked first in the country, and the range hoods won the first place in global sales for three consecutive years. .
In the first quarter of this year, Boss Electrical Appliances vigorously promoted its innovative central product range hoods to national real estate companies. The Central Range Hood is a systematic product consisting of 'hosts, terminals, power distribution valves, and intelligent cloud platforms'. Based on a systematic solution, it completely solved the problem of fume extraction and purification of the entire building. At the end of March, the owner of the appliance signed a strategic cooperation agreement with Vanke and Evergrande's real estate procurement e-commerce platform.
In addition to the owner's electrical appliances, Fangtai also maintained its high-speed growth in the first quarter, but its main growth was in sink dishwashers and embedded products, sink dishwashers and built-in ovens, and the steamer led the sales of Fangtai overall kitchen appliances. Directly improved performance; and Vantage is relying on dishwashers, embedded new categories of increase brought about a quarter of revenue growth of more than 30%.
Profit space is forcing industry reshuffle
At present, almost all home appliance brands are involved in kitchen appliances, among which the unknown brands are numerous. At present, the market concentration of kitchen appliances is low, hundreds of brands are everywhere, and the head company’s market share in kitchen and electric appliances is still scattered.
The retail monitoring data of Zhongyikang showed: 5 types of kitchen appliances, including range hoods, gas stoves, water heaters, electric ovens, and water purification equipment. Last year, the number of branded omnichannel channels was 475, 546, 416, and 246 respectively. There were 284, of which the number of new brands entered was 105, 127, 84, 73, and 79 respectively. The number of brands withdrawn was 102, 115, 60, 32, and 38 respectively.
Industry insiders analyzed with reporters that a large part of the market eliminated by the market in recent years was the 'Yi branded' cottage brand. Prior to this, the main channel was often online. Because the price of cutting corners was low and similar to some famous brands, it was temporarily taken away. A gold. But in the past two years, as the national regulatory authorities and major e-commerce companies have stepped up efforts to eliminate counterfeit and shoddy products and upgrade consumer demand, these brands have gradually lost their original market.
'The number of smoke machines per 100 households in China is 20, while in Japan it is 70. The share of kitchen electric faucets in developed countries and regions is at 35% or above. In the context of consumption upgrades, the kitchen electricity market is still increasing. However, the low-priced and low-end products will be less and less space. ' Kitchen electric industry practitioners told reporters.
On the one hand, the low-end product Shanzhai brand was eliminated and the other side was the owner. Vantage, Midea, Haier, Wanjiale, Wanhe and other brands actively launched high-end products. The industry expects this trend to accelerate this year.
Third-tier cities will become incremental new venues
Market analysis data shows that, in the context of real estate regulation, the sales of kitchen appliances in first-tier and second-tier cities have declined year-on-year, while those in third and fourth-tier cities are rising.
Li Yunlong, president of Boss Electric South China Operation Headquarters, told reporters that in the third and fourth line markets, young people in the township have become mainstream consumer groups. They value product quality and experience, and are more willing to purchase high-end products. The sales volume in the third and fourth tier markets increased by 46% year-on-year. More than %, high-end products have a huge space in the third and fourth line markets.
According to industry sources, consumers in third-tier and fourth-tier cities will become the fastest growing group in the future. According to McKinsey’s forecast, domestic households in Chinese cities in the next decade will see a significant increase in the proportion of middle-income and above, which is expected to increase. It reached 81% in 2022, becoming the most important contributor to China's consumption upgrade.
As of the end of last year, in the third and fourth tier markets, Boss had covered 60% of prefecture-level markets. To promote channel sinking and cover third- and fourth-tier cities, Boss Appliance is currently using a 'dual-brand' strategy. Kitchen power, sinking and accurately locating the market for the top 10% of the population in the third and fourth tier cities; the company launched the kitchen appliance brand 'MQ fame' in 2009, targeting the mass market in the third and fourth tier cities. By the end of last year, 2614 new outlets had been added. One store 885.
In addition to manufacturers, platform vendors Suning and Jingdong also targeted home appliance retailers in third and fourth-tier cities. Suning and Boss Electronics finalized a cooperation target of 12 billion sales in 2018-2020 in March this year. This year Suning will be in the third or fourth line and even five. Six-line market layout 3000 retail cloud stores.
This year, the number of JD.com home appliance store stores is planned to increase to 15,000. The sales volume will increase by 5 times compared to that of 2017, and it will cover 100% of the county seats in the country and accelerate the opening of the four to six-wire home appliance retail market.