Is this industry really fragrant?
Giant companies have entered the game!
Some companies have increased their net profit by nearly 99%!
Why is it suddenly hot?
Small household appliances refer to household appliances with smaller volume and power in addition to black and white power.
Since the beginning of this year, due to the impact of the new crown pneumonia epidemic, consumers' living habits have changed, and the demand for various small home appliances has increased rapidly.
Faced with a fierce market environment and consumers with diversified needs, many small home appliance companies are increasing R&D efforts, tapping consumer needs, and speeding up the launch of new products.
At the same time, the market prospects of the small home appliance industry also attracted more entrants.
Live delivery + content e-commerce
Significant growth in online sales of small home appliances
This year's sudden outbreak of new crown pneumonia has greatly increased the time consumers spend at home, and at the same time stimulated market demand for small household appliances in the kitchen.
In a small home appliance company in Foshan, Guangdong, the reporter saw several live broadcast teams being broadcast live.
The person in charge told reporters that since March this year, they have had four to five live broadcasts every day, and the live broadcast time has also changed from two or three hours last year to more than ten hours now.
It is understood that in the past, small home appliance companies could achieve good results by focusing on traditional e-commerce channels such as Tmall and JD.com.
However, with the rise of live streaming and content e-commerce, the marketing channels of small home appliances have undergone major changes. In addition, during the epidemic this year, more people are willing to stay at home and are accustomed to online shopping. Changes in consumption habits have also affected small home appliances. Online sales put forward higher requirements.
According to data released by Aoweiyun.com, in the first half of 2020, the online sales of domestic small home appliances market accounted for 83%, an increase of 9% compared with the same period last year.
According to data from JD.com, during the “618” period this year, the sales of new kitchen appliances such as wall breakers, multi-purpose pots, and air fryer increased by more than 200% year-on-year, and the sales of bakery products such as electric ovens, bread machines, and egg beaters The amount increased by 185% year-on-year.
Increased market competition
Small home appliance enterprises accelerate new
It is understood that compared to the cumbersome production process and technical difficulty of large household appliances, small household appliances are easier to imitate and copy.
In the context of intensified market competition, the innovation of small home appliances has begun to compete with more segmented population operations. At the same time, based on life scenarios to tap new potential needs, small home appliances are gradually developing in the direction of fast-moving consumer goods.
The reporter learned in the interview that the speed of new products launched by small household appliance companies this year has been significantly faster than in previous years.
The market prospects of small home appliances have also attracted more and more capital into the game.
According to data from Aoweiyun.com, from January 2019 to March 2020, the number of online brands of small kitchen appliances increased by about 100, while from 2017 to 2019, the number of online brands increased by only about 60 in the two years.
In addition, some daily necessities giants have also begun to deploy small home appliances. In July this year, South Korea's Lock & Lock released 10 new small home appliances in China, officially entering the field of small home appliances.
As market competition intensifies, how to ensure that oneself will not be left behind or eliminated by the market has become the primary consideration for small household appliance companies.
Significant growth in the performance of leading small appliances
Product innovation spawns new market demands
Recently, listed companies related to the small home appliance sector have successively released the 2020 semi-annual reports.
The impact of the epidemic has led to changes in everyone's living habits, and the demand for small home appliances has greatly increased. Leading small home appliance companies are accelerating in new development, and the performance of companies with certain competitiveness has increased significantly.
So, how should investors grasp the investment opportunities brought by the development of the small home appliance industry?
The data shows that in the A-share market, there are a total of 18 listed companies in the small home appliance sector, of which 10 companies have seen an increase in their semi-annual performance this year, and 8 have declined.
Among them, Xinbao's 2020 interim net profit was 431 million yuan, a year-on-year increase of 79.19%; Xiaoxiong Electric's 2020 interim net profit was 254 million yuan, a year-on-year increase of 98.93%; ASD's 2020 interim net profit was 144 million yuan, a year-on-year increase 79.05%; Aojiahua will report net profit of 149 million yuan in 2020, a year-on-year increase of 42.09%.
From the perspective of stock price performance, from the beginning of this year to the close of yesterday, the CITIC Small Home Appliances Index rose by 52.37%, while the CITIC Home Appliances Index rose by only 11.65% during the same period. The Small Home Appliances Index outperformed the Home Appliances Index by 40.72 percentage points.
Lu Ming, Chief Analyst of Open Source Securities' optional consumption: From the demand side, during the first half of the epidemic, the increase in consumer home time drove the demand for small appliances; from the perspective of stock prices, the overall increase in the small appliance industry was better than that of Bai The main reason for the electricity sector and the entire home appliance sector is that the white appliance sector has many offline channels, and offline channels are more affected by the epidemic. The small home appliance sector is dominated by e-commerce channels, so the overall performance is better.
Industry insiders believe that the increase in residents' disposable income is the basis for the long-term growth of the small home appliance industry.
On the one hand, the development of new consumption has brought about long-term changes in the small home appliance sector, making it more inclined to develop fast-moving consumer goods.
Leading small home appliance companies are accelerating new developments, expanding application scenarios, and tapping demand; on the other hand, industry leading companies continue to strengthen their advantages in e-commerce channels and obtain more traffic. Sales are expected to continue to grow in the future, but at the same time, the industry also has certain Investment risk.
Lu Ming, chief analyst of Open Source Securities' optional consumption: First, there are more categories in the small home appliance industry, and the bottleneck of a single category is more obvious; second, whether leading companies can continue to launch explosive products, there is a certain degree of uncertainty; Third, the entry barrier for the small home appliance industry is relatively low, and it may face the risk of increased industry competition in the future.