Jiuyang Co., Ltd. announced that it has acquired a 51% stake in Shark (Hong Kong) Company Limited (hereinafter referred to as 'Shark') related company with its own funds of 12.495 million yuan, officially entering the vacuum cleaner market. When it comes to Jiuyang, people naturally take it Soymilk painting is equal. In recent years, due to the low-speed development of traditional kitchen appliances, the development of Jiuyang has also encountered ceilings. The main products such as soymilk and juicer all have a downward trend, and they are entering the vacuum cleaner market. Yang from the 'kitchen' to the 'living room' diversified transformation of important measures. The industry believes that compared to Dyson, puppy appliances and other brands, Shark's influence on Chinese brands is weak, the localization of products will take time, so short-term The entry of Shark inside will not have a major impact on the overall domestic vacuum cleaner brand pattern.
Open up new fields
Jiuyang issued a notice saying that the company officially signed the "Equity Transfer Agreement" with Shark. The "Equity Transfer Agreement" clarified the transaction consideration, and made specific arrangements for the rights and obligations of the acquisition participants, and explained the details of the acquisition. Shark will 51% equity of Shangkeningjia (China) Co., Ltd. was transferred to Jiuyang, the transfer price was 12.495 million yuan. After the completion of the acquisition, Jiuyang holds 51% equity of Shangkeningjia (China) Co., Ltd., Shark holds 49% Equity.
According to the data, Shark is a North American vacuum cleaner company. As a brand that has firmly occupied the top spot of American vacuum cleaners for many years, according to incomplete statistics, Shark has sold nearly 40 million units since 2007, which means that every 2- One family in three American families is using Shark. More importantly, in the high-end vacuum cleaner market, even the famous Dyson has been defeated by Shark. According to reports, as early as 2014, Shark released a new model. The Lift-Away vacuum cleaner once competed with Dyson's DC65 and eventually won. After that, Dyson reluctantly revoked the DC65's slogan 'Inhalation power is twice that of any vacuum cleaner'.
Due to the high unit price, Shark's revenue is slightly higher than that of Jiuyang. In 2017, Jiuyang's major shareholder jointly invested in Shark. Jiuyang and Shark will jointly promote vacuum cleaners, air purifiers and other products in China.
On April 18th, the Shark brand from the United States held its first China conference in Shanghai and officially entered the Chinese market. Shark plans to enter China's high-end vacuum cleaner market through strategic channels such as Tmall, Jingdong, Sam, Suning and Gome. Domestic first- and second-tier cities, boutique department stores all channels. Beijing Business Daily reporter observed that at present, Jingdong, Tmall and other platforms have Shark's flagship store.
Jiuyang has always been known as small kitchen appliances such as soya-bean milk machine. In July 2002, Jiuyang Company was established. Wang Xuning, the current chairman of Jiuyang, led his team to formally enter the soybean milk machine industry. After five years of fighting, 2007 In September, it was officially restructured into a joint-stock company. In 2008, it was successfully listed on the Shenzhen Stock Exchange. At that time, there were few brands of soybean milk machine on the market, and the market size was not large. Jiuyang invested a lot of promotion expenses for advertising, and soymilk was gradually recognized by consumers. Year, it can be described as a key year in the history of soymilk development. At that time, affected by the 'melamine' incident, the dairy industry was in trouble, and the soymilk industry was given great opportunities for development. Jiuyang was a big one, once accounting for 80% of the market.
Main business encounter ceiling
For the reasons why Jiuyang entered the vacuum cleaner market, the Beijing Business Daily reporter contacted Jiuyang. As of press time, the company did not reply. The economics observer, Ning Shao, the chief editor of Nail Technology, believes that Jiuyang itself has encountered the development of the ceiling, from The extension of life appliances to environmental appliances, from the kitchen space to the full space of the family, will undoubtedly greatly expand the development space of Jiuyang.
After 2008, the sudden enlargement of the soymilk market, the low technical threshold of the industry and the high profits, attract more and more home appliance companies to shift their sights to the soymilk market. Midea, Haier, Supor, Dongling, Backgammon and other companies have tried water.
With the changes in the home appliance market, Jiuyang began to get rid of the constraints of a single product. In 2002, Shandong Jiuyang Small Appliances Co., Ltd. was established to establish a development strategy for diversified operation of small household appliances. In recent years, Jiuyang has continuously introduced cooking machines. Juicer, noodle machine, steamed bread machine, 'Iron kettle' rice cooker, broken wall machine and other new products. In 2016, Jiuyang also launched a smart smart product cooking robot and dishwasher for the younger generation.
However, the development strategy of diversified operation did not bring unprecedented growth to Jiuyang. Jiuyang was listed in 2008. In the year of listing, Jiuyang deducted a non-net profit of 537 million yuan, a year-on-year increase of 76.53%. The second year after listing ( That is, in 2009), Jiuyang's non-net profit was 570 million yuan, a year-on-year increase of 6.23%, and the growth rate showed a 'bridal' decline. Since then, the performance of Jiuyang has been slowly growing.
In recent years, traditional kitchen appliances have entered a period of low-speed development, and the development of Jiuyang has entered a bottleneck period. In the first quarter of 2018, Jiuyang’s revenue increased slightly by 5.57% to 1.568 billion yuan; in 2017, Jiuyang’s revenue was 7.25 billion yuan, down 0.92% year-on-year, net profit attributable to shareholders of listed companies was 685 million yuan, down 1.83% year-on-year. 'This shows that Jiuyang has touched a growing ceiling. From the perspective of business composition, food processing products Taking up nearly half of the share, Jiuyang is in need of expanding new profit growth points. 'Dr. Ding said.
Jiuyang's main soybean milk machine has shown a downward trend since a few years ago. According to the report "2017-2022 China Soymilk Industry Development Prospect Analysis and Development Strategy Research Report", from January to September 2016, Soymilk online The retail sales of the market increased slightly by 4.5%; while the offline market performed poorly, and the retail sales decreased by 23.9% year-on-year, far lower than the overall industry level of small household appliances.
According to industry observer Hong Shibin, from the current market survey feedback, the most popular market consumers are the '80s' and '90s'. This part of the population lives in cities, work pressure, and fast pace of life. The soymilk machine takes a certain amount of time and energy from pulping to cleaning, which makes it difficult to keep up with the pace of life of young consumers. 'The soymilk product function is lagging behind, it is difficult to keep up with the pace of young consumers' demand, it must be in young consumption. It is difficult to resonate in the crowd. The soymilk machine is not only complicated in steps, but the cleaning work after the soymilk has become a problem for the majority of users, which has affected the user experience and is difficult to usher in the market outbreak.
And Jiuyang, another potential food machine with great potential, because of the beauty, Supor has invested heavily in R&D resources and actively promoted it in the past two years, posing a clear threat to Jiuyang.
Leverage channel advantage
China's vacuum cleaner market has great potential for development. Ding Shao pointed out that the reason why Jiuyang is eyeing the vacuum cleaner market is because the popularity of vacuum cleaners in developed countries in Europe and America is extremely high, and some countries even exceed 100%, and the penetration rate of urban households in China Only around 10%, in the context of accelerated consumption upgrades, the Chinese market is still in a popular market dividend period.
Guo Meide, vice president of Aowei Cloud Network, also believes that vacuum cleaners, as the main environmental health appliances, are currently in a period of rapid development, and the brand structure of the market has not yet stabilized. Compared with small kitchen appliances, it has a good development prospect, and it is also a small kitchen from Jiuyang. The preferred category for the expansion of home appliances to environmental health appliances.
The data shows that the size of China's vacuum cleaner market in 2017 has reached 14.7 billion yuan, a year-on-year increase of 45.4%. It is a high-growth, high-profit category. Not only Jiuyang, many brands are targeting this new home appliance industry. This year, The vacuum cleaner market is very lively. The US sweeping robot company iRobot has increased its efforts to open up the Chinese market; China's local sweeping robot company Cobos is listed in China; Lake plans to expand its domestic market revenue share; Midea has established a vacuum cleaner business independently to establish a clean electric appliance business. unit……
'Jiuyang enters the vacuum cleaner market. The advantage is that the market is growing at a high speed, and it is expected to be divided into popular market dividends. Second, the competition pattern is not completely stable, and the latecomers have the opportunity to gain market advantage in the survival of the fittest in the round. Ding Shao will be frank.
In addition, Hong Shibin pointed out that Jiuyang's existing offline channel resources are conducive to the market expansion of vacuum cleaners. At present, in Jiuyang's sub-channel sales, online revenue accounts for 40%, and offline revenue accounts for 60%. Based on nearly 10 Shopping Mall brand experience stores and dozens of brand stores, Jiuyang has set a goal: to open 300-500 offline brand stores nationwide in the next three years.
Of course, as a new entry brand, Shark's challenges are also worthy of attention. Guo Meide believes that compared with Dyson, Shark's influence on Chinese brands is weak, and the localization of products still takes time. Some American vacuum cleaners are currently introduced. It is relatively large, and its shape is slightly cumbersome. It also needs to be developed for the small and medium-sized units of Chinese houses.
Beijing Business Daily reporters log in to Jingdong Mall and Tmall Mall to see that although Shark started selling three months ago, the sales volume of a single item is dozens or even single digits.
Ding Shaojun said that Jiuyang's channel advantage is more in the offline, but the domestic offline vacuum cleaner market has been controlled by Dyson for most of the market share. Compared with Dyson, Shark has a big gap in brand awareness and influence. In the high-end market, it is difficult to have an immediate effect. On the online market, Puppy Electric is undoubtedly a strong opponent. 'In addition, Jiuyang’s brand as a small kitchen appliance is too strong, and the brand’s stereotype is that the brand is expanding to clean appliances. Come to hinder. '