Wen|She Kaiwen
Source | Intelligent Relativity (aixdlun)
Recently, Omar Electric, Xiaoxiong Electric, and Supor have successively released 2020 half-year performance forecasts. The performance of the three major brands is quite different.
Omar Electric's semi-annual performance forecast data shows that the net profit attributable to the parent was 48.26 million yuan to 62.66 million yuan, a decrease of 83.77% to 78.93% over the same period last year. It is reasonable for Omar's performance to continue to decline for the long delay in getting out of the shadow of financial thunder.
According to data from Supor, in the first half of 2020, Supor achieved total operating income of 8.187 billion yuan, a year-on-year decrease of 16.76%; total profit was 804 million yuan, a year-on-year decrease of 26.66%; net profit attributable to the parent company was 666 million yuan, a year-on-year decrease of 20.48 %, Supor's performance decline is mainly due to the impact of the epidemic on the offline market.
Xiaoxiong Electric has become a standout. In the first half of the year, it is expected to achieve a net profit of 230 million to 268 million yuan, a year-on-year increase of 80% -110%, and both performance and growth rate exceeded expectations.
1. The victory of the "dark horse", but the market is still unpredictable
Just judging from the performance forecast for the first half of this year, a few are happy and a few are worried, but the reasons for the ups and downs of the small home appliance market in the first half of the year can be seen at a glance.
The main reason for Supor's failure in the first half of 2020 was the impact of the epidemic. It is well known that the main battlefields of the three major brands of "US Jiu Su" are offline. Statistics show that the three leading brands once occupied more than 90% of offline small appliances.
After the epidemic blocked the offline market, it was undoubtedly a devastating blow for Supor. As the epidemic stabilized, Supor's revenue in the second quarter has resumed growth.
Xiaoxiong's ability to achieve substantial leap-forward growth is also due to the epidemic. Xiaoxiong's sales channels are diametrically opposite to those of the "US Jiusu". According to previous sales data, Xiaoxiong's online revenue reached 960 million yuan from 2016 to 2018. , 1.51 billion yuan and 1.83 billion yuan, accounting for 91.6%, 91.93%, and 90.41% of the main business revenue. That is to say, the online and offline sales channels have reached an amazing 9:1.
Even under the pressure of the epidemic, the online channels of the overall home appliance industry are growing rapidly. In the first quarter of 2020, the contribution rate of the online market to home appliance retail exceeded 50% for the first time. Xiaoxiong Electric is also unique.
However, the advantages of online channels may not be the key insurance for Cubs. Looking back at the time when the "US Nine Soviet Union" dominated the market, the "channel barriers" it established were equally indestructible. It can even be said that if it were not for the rise of e-commerce channels, other brands would also have no chance.
Therefore, a single marketing channel may not be an "advantage" in the true sense. Similarly, "Newcomer" Bear Electric defeated "Master" Supor, but it does not mean that this is a complete suppression of offline channels by online channels.
In addition to what we have seen, brands are embracing online channels vigorously, and there are also some that have re-run offline, such as Galanz.
The "Galanz Incident" was a buzzword last year, because Galanz reached a comprehensive strategic cooperation with an e-commerce platform in the early stage of 6.18 last year, which caused it to be "bullyed" by another platform, which appeared on the search side of the e-commerce platform. The abnormality caused Galanz’s sales to drop sharply during the 6.18 period of the platform.
As a result, since the beginning of this year, Galanz has "as a last resort" to come up with a new way of playing, that is, it has begun to deploy community stores across the country. According to previous data, it has opened more than 50 and plans to reach 500 by the end of this year.
In Galanz’s official words, “This kind of omni-channel marketing innovation can integrate online and dual-line integration, and integrate into users’ lives at a deeper level, understand consumer demand changes the fastest, and then optimize the closed loop of the industrial chain innovation system. Competition to re-enable."
But is it not a kind of "helplessness". After all, the online channel does not belong to the brand itself, and it was also put a question mark after the "Galanz Incident".
Therefore, for Cubs who rely on online channels to "break through", online channels may also become a "time bomb" . Phased victory cannot be denied, and the long-term ownership of the small home appliance market is still uncertain.
2. The small home appliance market is still "changing old and new"
Small household appliances have been able to develop in the past two years. Consumption upgrades are indispensable. The development process of small household appliances also fully reflects the entire process of consumption upgrades, that is, as the level of demand continues to increase, the consumer market is very There are more and more demands for things.
If you can’t keep up, you may face elimination.
In March of this year, there was news that Philips’ small home appliance business had been "on the shelf" for sale. The latest news showed that Philips’ small home appliance business will be valued at US$4 billion. The transaction is expected to begin in the fourth quarter of this year. Including coffee machines, vacuum cleaners, air purifiers, etc., excluding razors, electric toothbrushes and other star products. And it is said that the domestic brands Midea, Haier, South Korean brands Samsung, and LG are all likely to become potential buyers.
In recent years, Philips is gradually spinning off the home appliance business. After exiting the TV, lighting and other furniture and electrical appliances market, this time it is the turn of the small home appliance business. Judging from the statement issued by Philips at the beginning of the year, it has turned to medical care in order to further contribute to the healthcare sector. The investment to free up funds, the divestiture of the home appliance business has become the general direction of Philips.
On the other hand, the proportion of revenue from the home appliance business has been decreasing year by year, which is also the reason for Philips' determination. In 2019, the home appliance business only accounted for 11.8% of revenue. In sharp contrast, the healthcare business accounted for 66%. Obviously, immersed in medical treatment, Philips has no more thoughts to cater to the "new demand" of home appliances, especially the small appliance market.
When someone leaves, someone will come. On July 21st, LocknLock, the giant of Korean household goods brand, opened the nation’s first LocknLock Plus flagship store in Shanghai and held a press conference to launch four series including dozens of new small home appliances: including air fryer upgrades. Replacement products, magic steam fryer products; sterilization series products; portable series of small household appliances and a popular infrared camera for safety and epidemic prevention.
Undoubtedly, after seeing the huge cakes in the domestic small home appliance market, LOCK&LOCK is also irritated. Its biggest "assuming" for its entry into the domestic small home appliance industry should come from its brand awareness. It has firmly established itself as the No. 1 brand of "fresh-keeping box" in the domestic market and has accumulated many high-stick users.
However, there may be more problems. Firstly, they will face the attack of "Meijiusu", Xiaoxiong, Xiaomi and other brands. The competition in the small home appliance market has become increasingly fierce; secondly, the label of the "fresh-keeping box" brand is both an advantage. It is also a disadvantage. It will be more difficult for LOCK to reshape its image than expected. Finally, it is the interpretation of the domestic market demand. After all, LOCK is not a professional player in the home appliance market. If the gameplay of small home appliances is just following the big forces, in fact It's hard to get ahead.
In the final analysis, the technical threshold in the field of small home appliances is still low, and it can even be said that barriers have not been formed. In addition, the supply chain is short and the foundry is strong. Even the bear is only because of the "softness of design, marketing, and channels." "The advantages have achieved substantial growth, and fundamentally, small household appliances need to pay more attention to the degree of satisfaction of the segmented scenes. In this regard, all major brands need to be strengthened.
3. Product iteration, small appliances are coming out of the kitchen
Beginning last year, with individual brands taking the lead, small household appliances have undergone a major shift "out of the kitchen". Especially after the epidemic this year, when small kitchen appliances and small household appliances became popular one after another, personal care products came to the fore and became the market’s “good heart”.
A while ago, digital internet celebrities took turns to bring the goods and showed live broadcasts on major platforms. The "fascia gun" known as "10 minutes to relieve fatigue" and "slim belly and thin legs partial fat reduction artifact" quietly fired on the Internet, the so-called " The fascia gun uses its internal special high-speed motor to drive the “torch head” to generate high-frequency vibrations to the deep layer of the muscles to reduce local tissue tension, relieve pain, and promote blood circulation.
To put it plainly, it is a massager, and personal care products like the "fascia gun" are popular, and there are profound market factors behind it.
With the rise of the consumption power of Generation Z, their "new" demand for small appliances is no longer limited to the kitchen. From beauty cosmetics, consumer medical beauty, health care to beauty tools, and oral care have become their needs.
In order to cater to this market demand, it can be seen that domestic small household appliances have gradually expanded from traditional razors and electric wind blowing products, so the market has formed a situation called "four beauty", that is, " Hairdressing, tooth beauty, cosmetology, body beauty".
And this change may not be a good thing for the traditional small home appliance powerhouse "Mei Jiu Su". It can be seen that at this stage, the "four beauty" market is occupied by "emerging" brands dominated by Dyson and Ulike. .
Another data shows that after the country entered the post-epidemic period this year, the number of small household appliance companies registered a short-term blowout. In March, the number of registrations reached 4,874, an increase of 546% from the previous month. In April, it increased by 20% from the previous month. %, and the category is becoming more diversified.
When small appliances are no longer confined to the "kitchen", the "scene advantage" obtained by "Meijiusu" through long-term operations may no longer exist, just like in order to diversify the layout of small appliances, such as Haier, TCL and other large appliances. Since last year, the brand has launched new products to lay out the beauty and personal care small home appliance market.
In short, it is difficult for the small home appliance market to maintain a category unchanged for many years like traditional large appliances, so it will not appear to become the industry leader after occupying a single product track.
Even if it is like Xiaoxiong Electrical Appliances, it must constantly adapt to the changing environment of market demand and continue to develop the market with more "new" products. This will also become a long-term trend in the small home appliance market.
to sum up
Small home appliances have indeed brought enough "surprise" to the market based on appearance, practicality and cost performance. However, if you want to gain a foothold in the ever-changing market, innovation, quality and service capabilities will be the eternal theme .
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