Selling out! The market size of this small household appliance will double by 100 times! How profitable is this industry? The industry revealed gross profit margin. .
Speaking of small home appliances, I believe that many consumers will no longer feel unfamiliar. Bean sprout machines, yogurt machines, sweeping robots... As a symbol of increasing the fun and quality of life, these high-value, multi-functional small home appliances are becoming faster and faster. Enter consumers’ homes at a faster rate, and it has shined in the home appliance market in recent years.
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Contrarian growth
Multifunctional small home appliances continue to sell well
Wang Hai is the person in charge of a small household appliance manufacturer in Shenzhen. Since last year, the sales data of his company's small household appliances business has been very gratifying. In particular, the sales of small kitchen appliances such as mixers and soup machines have doubled.
Wang Hai, Director of the Foreign Affairs Office of a certain group company: Kitchen appliances have indeed surged, and it is close to a 200% increase.
Our powerful mixer has a sales of almost 300 million yuan. Our intelligent soup maker, the kind of soup maker that is remotely controlled, has also reached a sales volume of 260 million. The order has been full from the second half of last year to now. The electricity market is very hot, and so far we can't make orders for kitchen appliances.
Relying on the advantages of low unit price, small size and high appearance, small home appliances have become popular in recent years.
Compared with other home appliance products, small home appliances are more able to meet consumers' needs for functional segmentation.
In terms of function, the current small home appliances are mainly composed of small kitchen home appliances, clean small home appliances, and personal care small home appliances. Among them, the small kitchen home appliances and clean small home appliances have the largest market.
Leng Ling, CEO of a company: In 2019, the scale of floor scrubbers in the entire industry will be around 50 million, but in 2020, the scale of the industry will exceed 1 billion in China. We estimate that this new category of scrubbers will have a share of the domestic market this year. , Will reach 40-50 billion.
Stimulated by the "home economy" for more than a year, the sales of small home appliances have increased dramatically.
According to the "Report on China's Home Appliance Market in 2020", in 2020, the annual retail sales of the home appliance market will be 833.3 billion yuan, a year-on-year decrease of 6.5%. However, small home appliances have grown against the trend and become the only product category with positive growth in retail sales. An increase of 1.85%.
In the first quarter of this year, small household appliances still maintained a good growth momentum.
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High gross profit and short R&D cycle
Small home appliance companies share the industry's rapid growth dividend
With the continuous innovation of small home appliances and the rapid growth in sales, manufacturers of small home appliances are also enjoying more and more industry dividends. So how profitable is this industry?
Since last year, small household appliances have become one of the core businesses of Wang Qiang's company. From research and development to sales, the company has built a complete small household appliance production chain.
Up to now, they have launched more than 100 series and nearly 400 small home appliances.
In the company's live broadcast room, new products will be launched on the market every day, and a new series will be launched every three days.
Industry insiders told reporters that a relatively simple small home appliance product, from research and development to market launch, only takes two to three months at the fastest. Compared with black-and-white electrical products, the research and development cycle alone has been shortened by at least half.
In terms of gross profit margin, small household appliances are even higher.
Zhang Peng, researcher of Rongtong Fund Management Co., Ltd.: The gross profit margin of small household appliances can reach 30 points, or even more than 30 points. Some individual products can reach 40 points. It is 25 points, and the black power may be about 10 points.
Since the beginning of the year, as the prices of various raw materials continue to rise, the gross profit margin of small home appliance companies has also been correspondingly compressed, but it is still at a relatively high level in the entire home appliance sector.
The industry believes that from the perspective of sales this year, the sales growth of the small household appliance industry may slow down compared to 2020, but as exports continue to boom and more innovative products appear, the small household appliance industry will continue to develop rapidly.
Yan Xiaoqing, chief analyst of Industrial Securities' home appliance industry: The growth of small home appliances is a relatively large sub-sector. In fact, the number of small home appliances owned by each family in Europe and America is about 30, while Chinese households actually only have about 10.
Therefore, based on this, there is a lot of room for the household ownership of small household appliances in China.
At present, several leading companies in the small home appliance industry have released their 2020 annual reports or performance forecasts. According to disclosed data, Supor, Joyoung, Xinbao, and Xiaoxiong Electric, all four listed companies have achieved profitability.
Among them, Supor has released a quarterly report. In the first quarter of this year, the company's revenue increased by 43.42% year-on-year, and the net profit attributable to the parent increased by 64.59% year-on-year.
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Serious homogeneity of remarketing
Restricting the development of the small household appliance industry
As a fast-growing track, the small home appliance industry can be said to be in a period of dividends, but many small home appliance companies have been criticized for their “light R&D and marketing” mode. At the same time, product quality issues and after-sales service maintenance The problem has also become the hardest hit area for consumer complaints.
A reporter searched for electric toothbrushes on an e-commerce platform and found that many products have very similar appearances, but the prices range from more than 20 yuan to more than 1,000 yuan.
Clicking on the links of some lower-priced products, you can see that many products have similar evaluations as "not powered on" and "broken after more than ten days".
The reporter also encountered the same situation in the offline market.
Industry insiders told reporters that the threshold for the small home appliance industry is relatively low, and the market demand is also greater. Some businesses attract consumers through price wars, but in fact they cut corners, and at the same time planted potential safety hazards.
According to the “Analysis of Complaints Accepted by the National Consumers’ Association in 2020” released by the China Consumers Association, in 2020, from the perspective of categories, Internet celebrity home appliances such as juicers, beauty appliances, air fryer, cooking machines, etc. will become major complaints. Among the disaster areas, the problems of exaggerated marketing and shoddy manufacturing are particularly prominent.
The industry believes that the current main problem of the small household appliance industry is that the industry has not yet established a complete technological innovation system, the entry threshold is low, and the corresponding quality control standards are lacking. Various factors make it difficult to comprehensively improve the quality of small household appliances.