The 117th Department Store: The small home appliance market is under pressure, and overseas and offline have become the focus of future competition
The 117th department Store will learn that the golden age of the small home appliance industry seems to have passed, and now it is a key moment to test the true strength of each company - some are exposed after the ebb tide, and some are struggling to sprint forward。
As of the end of August, the listed companies of small household appliances have successively announced their financial reports for the first half of 2024, and the performance shows a clear trend of differentiation, which can be described as "half is seawater, half is flame".。
From the overall performance of the 117th department store, Supor and Xinbao shares performed well, achieving double growth in operating income and net profit, and consolidating their position as industry leaders。In contrast, the performance of bear electrical appliances is not satisfactory, revenue and profit declined at the same time, which triggered the industry's deep thinking about its future development。In addition, although Jiuyang and Beiding shares have slightly increased in revenue, the significant decline in net profit indicates that enterprises are facing challenges in cost control and market strategies。
The domestic market is under pressure, and the overseas market has become a new growth point
Through the analysis and comparison of the semi-annual reports of several listed companies, it can be clearly seen that the performance of enterprises to achieve growth, its overseas sales performance is particularly outstanding。This phenomenon is largely due to the weakness of the domestic market。According to Aowei cloud network data show that in the first half of 2024, the overall retail sales of domestic kitchen small appliances was 26.1 billion yuan, down 5 percent from the same period last year.4%, while retail sales were 131.49 million units, an increase of only 0.4%。
Faced with the challenges of the domestic market, many small home appliance enterprises have accelerated the expansion of overseas markets。Among them, Supor relied on the strong support of its parent company, the French SEB Group, to further expand its overseas market share。In the first half of 2024, Supor's export revenue was 34 percent.5.5 billion yuan, an increase of 39 percent year-on-year.29 percent, much faster than its overall revenue growth。Supor said that the main reason for the strong growth of export revenue was that the company's main export customers were in the destocking stage in the same period last year. In this period, with the demand recovering after the destocking of the European and American markets, the company's main export customers' orders increased significantly over the same period, and its operating income achieved rapid growth。
Xinbao has increased its presence in overseas markets by acquiring partners' brands。Among them, Barsetto is a small household appliance brand from Rome, Italy, and Morphy Richards is a small household appliance brand from the United Kingdom。With its strong manufacturing capacity and efficient order delivery system, Xinbao Shares made remarkable achievements in overseas markets in the first half of 2024, with export sales revenue reaching 59 percent.200 million yuan, an increase of 27 percent year-on-year.05%, accounting for more than 70% of its total revenue。
Bear Electric and Beidin are actively expanding overseas markets through cross-border e-commerce and direct-to-consumer (DTC) models。However, the overseas operations of both companies are still in their early stages, and while showing growth potential, overseas revenue is still a small proportion of total revenue and a relatively limited contribution to overall results。Data show that in the first half of 2024, the overseas sales of Bear electrical appliances reached 1.7.2 billion yuan, an increase of 26.66%。Similarly, the export revenue of Beiding's own brand is 0.2.5 billion yuan, an increase of 29.47%。
Compared with the above companies, Jiuyang's overseas business expansion is not very smooth。According to the semi-annual report, due to fluctuations in overseas foundry demand, Jiuyang's export revenue was 8.3.2 billion yuan, down 9 percent from the same period last year.69%。From the perspective of the proportion of overseas sales, in the first half of 2023, Jiuyang's overseas business accounted for 21.By the first half of this year, it had fallen to 18 percent.97%。
There is no doubt that the overseas market has become a must for small household appliance enterprises。However, from the current situation, most of the small household appliance enterprises that go to sea are still facing the dilemma of "having products without licenses"。Although these companies continue to improve product quality internally and actively expand sales channels externally, few can really establish brand awareness in the international market。Therefore, the small household appliance industry still has a long way to go on the road to the sea, in addition to the need to continue to enhance their comprehensive strength, but also need to be vigilant about the risk of falling into a price war。
Online dividends are gradually fading, and offline channels are valued
As we all know, the small household appliances industry is the dividend of the Internet, the strong promotion of online channels under the rapid rise, it can be said that the online channel is the cradle of small household appliances growth。However, according to the semi-annual report, more than one company pointed out that the growth rate of online channels slowed down or even declined in the first half of this year。
Supor mentioned in the semi-annual report that in the first half of 2024, the traditional e-commerce of online channels declined, the growth rate of interest e-commerce slowed down, and the overall growth rate of online retail slowed down and competition intensified。However, Supor as the industry's leading brand, online sales in the first half of this year still maintained a growth trend。
In order to cope with the pressure brought by fierce online competition, Supor continued to increase its retail channels on the one hand, upgrading cooperation with platforms such as Meituan flash shopping, Jingdong Home, and Ele. me to narrow the distance between products and consumers。On the other hand, expand the sinking channels, promote the implementation of refined operation management and optimize the sales structure in the three - and four-tier market O2O channels。In terms of B2B business, we carry out point exchange and purchase business with many large and medium-sized enterprises such as banks and airlines to provide increment for offline channels。At the same time, Supor continues to strengthen cooperation with regional real estate developers and decoration companies to develop pre-installation market business。
Beiding's semi-annual report shows that in terms of online direct sales, the performance of major channels such as Tmall, Tiktok, and Beiding Mall has declined。Among them, the Tmall channel revenue was 76.29 million yuan, down 21 percent year-on-year.08%;Only Jingdong channel achieved growth, with revenue reaching 13.21 million yuan, an increase of 5 percent.3%。
In the face of the general decline in revenue of online channels, Beiding has increased the construction of offline channels。It is understood that in the first half of the year, Beiding Shares opened seven new offline experience stores in Chengdu, Shanghai, Suzhou, Beijing, Chongqing, Changsha and Tianjin。It is expected that in the next two to three quarters, Beiding will continue to be in the expansion phase of new stores。
It is worth mentioning that in the first half of 2024, the revenue of Beiding's offline distribution and distribution channels reached 1547.960,000 yuan, an increase of 329.92%。According to Fang Zhen, deputy general manager of Beiding Shares, this part of the significant growth is mainly due to the company's cooperation with Sam in the steaming pot category in the first half of the year。In the future, Beiding plans to expand this cooperation model to more product categories。
Bear Electric also expressed its concern about the high proportion of online sales in its semi-annual report。The report pointed out that the company's products are mainly sold online through Tmall, Jingdong, Pinduoduo, Vipshop, Tiktok and other platforms, with a relatively large proportion of online revenue and a high degree of concentration。
In order to resolve this risk, the company has gradually opened up offline and overseas markets in recent years, and developed offline and overseas distributors。然而，Given that the expansion of these new channels is still in its early stages，If we cannot maintain good cooperation with major e-commerce platforms in the future，Or significant adverse changes in the sales policies and charging standards of these platforms，Or the company's performance on the platform is not as good as expected，And failed to expand other channels and increase the proportion of offline sales in time，Will have an adverse effect on the company's performance。
As the growth dividend of the online market gradually fades, small household appliance companies begin to turn their attention to the offline market。For high-end small appliance brands, offline channels may be able to become a new growth point, providing a more direct brand experience and higher added value。However, for those companies that rely on low-unit price products, the outlook for the offline market is still an unknown and needs to be carefully explored。
Write at the back
Through the financial data of the first half of 2024, we can foresee that the future competitive focus of the small household appliances industry will shift to overseas markets and offline markets。For small household appliance enterprises, these two paths are full of challenges。
In the market, China's small home appliance enterprises mainly focus on the three major regions of Asia, Europe and North America。Although the price of customers in Europe and North America is high, the entry threshold is also relatively high, and the product quality requirements are extremely strict, and the market competition is particularly fierce。Because of the huge differences within the Asian market, enterprises must have the ability to fine management and rapid response。Although Africa and the Middle East are still considered blue ocean markets, entering these markets requires careful assessment of risks due to weak logistics infrastructure and uneven consumption levels。
The 117th department Store will learn that as for the offline market, it is a new challenge area for small household appliance enterprises。Some insiders pointed out that small household appliance companies involved in offline channels may face greater difficulties。Changes in the traditional retail environment, changes in consumer shopping habits and high operating costs are all problems that enterprises have to face when laying out the offline market。Therefore, while exploring the offline market, enterprises must be fully prepared to deal with various uncertainties that may arise。
The above is the home appliance related information brought by the 117th Department Store. If you are interested, you can come to the exhibition site to learn more about the industry information。
Source: China State Grid
