China Food

Young people who hoard air fryers can’t bring small household appliances

“ 
there is no stock list of air fryer, which is incomplete.
 ”

Wen: Cheng Liang; Editor: Yang Jie

Source:

 
From air fryers to induction cooker, electric frying pan, kettle and mini rice cooker, small kitchen appliances are “turning red” again.
Recently, a wave of “hoarding tide” has emerged on major social media. And every young man’s “stock list” is inseparable from a wave of small kitchen appliances such as air fryers.
In 2020, the kitchen small household appliance market has ushered in a wave of development climax. However, in 2021, the small household appliance market suddenly “cooled down”, and the performance of a number of small household appliance enterprises also got on the roller coaster. Now, can they “rejuvenate”?
Source / Vision China
The most regretful thing is “buying an air fryer is a step too slow”
In early April, a stock list called “in case you have to go through all this, please stock up and write to everyone outside Shanghai” spread on the Internet. Among them, in addition to counting all kinds of food and other materials that need to be prepared at home, the author of the article also mentioned that failing to buy an air fryer is his “most regretful thing”, “when you are depressed, you really want sweets and fries, and you can also fry French fries to coax the children at home.”
 
On xiaohongshu, a Shanghai user wrote: “my life is given by community group buying and air fryer!” At the same time, on major social media, many netizens also said, “people who don’t cook at ordinary times must prepare electric cookers, air fryers and all kinds of spices, otherwise, even if there are Kitchenware and materials at home, you can’t do anything.”
Figure / microblog screenshot
As of April 18, Caijing Tianxia weekly found that small kitchen appliances such as 3L mini smart rice cookers and induction cookers rarely appeared on JD’s hot selling list of appliances. In the kitchen small electric heating sales list, Xiaomi’s mi family 3L rice cooker, which ranks first, has sold more than 3100 pieces in the past 24 hours; In second place is oaks’ air fryer, which has sold more than 2000 pieces in a day.
After 95, Tong Jia is preparing to add a barbecue rack and a barbecue rack, even though the cabinets in the company dormitory are full of her wall breaking machine, oven, coffee machine, sandwich machine and multi-functional all-in-one pot. “I usually like to stir up delicious food. Now I also want to hurry up and store something. I can’t stand eating only fast food or a simple and light diet for a long time. I still want some richness, so I will buy food ingredients and easy-to-use small appliances. I can’t use things often, but I must have them so that I won’t go hungry.”
Yang Ke, who moved to his new home soon, was recommended an egg cooker by his colleagues after he just bought a cooking pot for one person. “One pot is very convenient and suitable for people who rent a house and live alone. The price is also cheap. It’s only more than 80 yuan. Summer is coming. I’m slimming and reducing fat. I usually rely on it to cook light food. If one day I need to stay at home, I already have a multi-functional pot at home, which also gives me a sense of security to a great extent.”
As a loyal fan of small household appliances, Zhou Min of the post-90s “went into the pit” six years ago. She said that at the beginning, she could often brush the posts of “improving happiness” with small household appliances on social platforms such as microblog and xiaohongshu, and slowly she was planted with more and more products. “Small appliances will be subdivided into many kinds according to the vertical function, and there are always several that can impress me. Because the unit price is not high, I have more and more things to store, such as ovens, Juicers, electric cookers, electric fryers and so on.”
“Actually, because I fear that the kitchen is too much, I have to buy it and I am idle, so I am always restrained.” but to tell the truth, when you use the video on the tiktok to the breakfast machine and the pot, you really can’t get a heart beat. Zhou Min said.
Wei Qian told Caijing Tianxia weekly that there are many small appliances bought by herself and sent by friends at home. As long as she can take time to cook, these appliances can be easily used, saving time and effort. “Many small household appliances are the welfare of lazy people, such as electric cookers and Breakfast machines, which are very convenient. Moreover, during the epidemic period, single person small household appliances also avoided the contact of many people as much as possible. When I was isolated at home, I used air fryers almost every day, which has a very high utilization rate.”
This wave of “grain hoarding” fever of young people taking precautions also makes the “ace” air fryer in small household appliances “really fragrant”. According to the data of ovicloud, in Q1 2022, in terms of the growth rate of various categories of kitchen small household appliances, the air fryer will ride the dust. In the case of negative growth of other categories online and offline, the online retail volume of air fryer increased by 161.0% year-on-year, and the offline retail volume increased by 86.6% year-on-year.
Figure / Aowei cloud data screenshot
In mid February this year, Biyi shares, known as the “first share of air fryer”, landed in the A-share market and immediately harvested 6 trading boards for 6 days. As of April 19, Biyi shares had closed at RMB 17.58, with a total market value of RMB 3.281 billion.
But at present, it seems that this wave of small household appliance purchase fever led by air fryer can not drive the increasingly weak small household appliance industry. According to the report of ovicloud.com, since the beginning of the year to the end of the first quarter of 2022, the development of kitchen small household appliances industry has been under pressure. The cumulative total data of omni-channel promotion from January to March 2022 shows that the retail sales of 13 categories of kitchen small household appliances are 13.5 billion yuan, a year-on-year decrease of 11.1%; The retail volume was 59.57 million units, a year-on-year decrease of 13.4%.
Small household appliances can’t wait for the “second spring”?
In fact, in 2020, the small household electrical appliance industry also had a good time. The lazy economy and single economy were popular. At that time, coupled with the fact that many people were at home during the epidemic, small household appliances ushered in a bumper harvest in the consumer market and capital market.
According to the report on China’s home appliance market in the first half of 2020, in the first half of 2020, under the environment of a year-on-year decline of 14.13% in China’s home appliance market, the retail sales of small home appliances increased by 12.4% year-on-year with an online retail volume of 78 billion yuan. In the first hour of the “double 11” day in 2020, the turnover of 313 small household appliance brands in tmall mall increased by more than 1000% over the same period last year.
At that time, driven by the trend of live broadcasting with goods, small household appliances such as air fryers also became “kitchen artifacts” in the eyes of countless young people.
 
As one of the hottest tracks in the venture capital circle in 2020, small household appliances had a market scale of 401.5 billion yuan and 600000 enterprises. Enterprise survey data show that from March to April 2020, the registration of small household appliances in China reached 10722, and a total of 8 financing events occurred from January to August.
In the secondary market, the shares of listed companies focusing on small kitchen appliances such as Xiaoxiong electric appliance, Xinbao shares and Beiding shares once soared. Affected by the collective rise of concept stocks of small household appliances, the share prices of old giants SUPOR, Jiuyang shares, Midea Group and other companies also reached their respective historical highs from July 2020 to March 2021.
However, in 2021, the small household appliance market began to “cool down” rapidly.
Xiaoxiong electric appliance, Jiuyang and SUPOR, three leading small household appliance enterprises, have handed over their transcripts in 2021. According to the financial report, Xiaoxiong electric appliance achieved a revenue of 3.606 billion yuan in 2021, a year-on-year decrease of 1.46%; The net profit was 283 million yuan, a year-on-year decrease of 33.81%. This is the first double decline in revenue and net profit of Xiaoxiong electric appliance since 2017.
Over the same period, Jiuyang achieved a revenue of 10.54 billion yuan, a year-on-year decrease of 6.09%; The net profit was 746 million yuan, a year-on-year decrease of 20.69%. This is the largest decline in Jiuyang’s net profit since its public data. Although SUPOR’s revenue and net profit have increased, its gross profit margin was 23% in 2021, the lowest level since its listing.
It should be noted that Xiaoxiong electric appliance and Jiuyang also experienced a decline in sales and an increase in inventory last year. Over the same period, Supor’s inventory growth was also greater than that of sales. According to the data, in 2021, the sales volume of Xiaoxiong electric appliance was 38.9547 million units, a year-on-year decrease of 13.7%, and the inventory was 9.4195 million units, a year-on-year increase of 9.72%; Jiuyang achieved sales of 65.44 million units, a year-on-year decrease of 2.17%, and realized inventory of 8.06 million units, a year-on-year increase of 7.61%.
Liu buchen, an analyst in the home appliance industry, told Caijing Tianxia weekly that the revenue of small home appliance enterprises is basically negative growth, because the base in 2020 is too high. “Unlike large household appliances, small household appliances, which are second to demand products, the public’s desire for consumption needs opportunities and time to accumulate. However, small household appliances still have market space to explore, but they will basically maintain relatively mild fluctuations in the future.”
“At present, the phenomenon of local hoarding in the market does not mean that the spring of the overall market is coming. In fact, the trend of hoarding household appliances in the recent hoarding is also suspected of speculation. After all, the sales of household appliances have basically negative growth in recent years, and small household appliances have quickly entered the cold period after the outbreak in 2020. Now it seems that the excessive overdraft on the market has not been completely healed.” Liu buchen said.
In addition, many consumers said that many small household appliances bought at home are more in the state of “idle eating soil”.
“In fact, I bought a lot of small household appliances on a whim. The oven and portable Juicer basically ate the ash, and I threw some old pots on the way to move. Some are easy to cook and difficult to clean up; some products I bought feel like I paid IQ tax, which is not as good as advertised. Like the sandwich machine, I used it at most once after I bought it, and I basically chewed bread for breakfast.” Zhou Min said.
Li Qing also said frankly that many small household appliances in his family are idle. “The barbecue pot I bought at the end of last year was only used once a month ago. The yogurt machine that followed the trend in 2020 has not been used at all.”
“As for the next outbreak of small household appliances, it should be a long time. The earliest outbreak of the small household appliance market occurred around 2005, with an interval of at least 15 years by 2020.” Liu buchen said.
Industry blue ocean does not mean that enterprises are easy to do
Some organizations have predicted that by 2025, the global sales scale of small household appliances will exceed 230 billion US dollars. In 2021, the scale of China’s small household appliance market will reach 486.8 billion yuan, and the future growth space of small household appliance market is much larger than that of household appliances.
However, Liu buchen believes that “industry blue ocean” does not mean that “enterprises are easy to do”. Compared with household appliances that have touched the ceiling, small household appliances are a “cake growing” market. There can be more differentiation under the three categories of kitchen, personal care and cleaning. Its product category itself is a dynamic concept, and each new category will launch a new demand; But this does not mean that enterprises can easily take a share.
“I have heard a very interesting saying in the industry: a manufacturer of small household appliances can set up a factory as long as it has 100000 yuan and gives workers a screwdriver. In fact, this shows two significant characteristics of small household appliance enterprises – one is the low capital threshold and the other is the low technical threshold. This also makes the industry very easy to be ‘abused’, and many enterprises will ‘die together’ in the price war. At the same time, it is difficult to be like the company Like a top enterprise with a scale of 100 billion yuan, even the leading brands lack their own moat. ” Liu buchen said.
Up to now, Midea Group has a total market value of 410.2 billion yuan, Haier Zhijia has a total market value of 232.9 billion yuan, and Gree Electric has a total market value of 191.5 billion yuan. In contrast, Supor with 43.1 billion yuan, Jiuyang with 12.6 billion yuan and Xiaoxiong electric with 7.8 billion yuan are “dwarfed”.
From the financial report, the R & D investment of Xiaoxiong electric appliance, Jiuyang and SUPOR is also far lower than that of sales. Last year, their sales expenses were more than four times of R & D expenses. According to the data, in 2021, the R & D cost of Xiaoxiong electric appliance was 130 million yuan, while the sales cost in the same period was 553 million yuan; The R & D cost of Jiuyang was 357 million yuan, while the sales cost in the same period was 1.58 billion yuan; SUPOR’s R & D cost is 450 million yuan and its sales cost is 1.91 billion yuan.
According to the ovicloud report, the technology research and development of small household appliance industry is insufficient in 2021. Since 2010, the number of technology patent applications in China’s small household appliance industry has increased sharply, reaching a peak in 2020, but the overall number of patent applications in China has decreased sharply since 2021.
In this regard, Liang Zhenpeng, a senior industrial economy observer, once said in an interview that because the technology content of the small household appliance industry itself is low, the threshold is low. When many giants enter, the market competition is fierce and the product homogenization is serious. Enterprises can only continuously increase advertising and channel laying.
Under the marketing, the price war of small household appliances is also continuing. According to the ovicloud report, the online price war of small kitchen appliances since 2019 has not stopped even under the background of the sharp rise in raw material prices in 2021, and the monthly average price of the industry is basically flat. However, in the first quarter of 2022, the average online retail price of small household appliances has increased by 6.6% year-on-year, and the signs of price rise began to surface. Under multiple pressures, all brands also began to make internal structural adjustment, and gradually changed from price war to value war.
“In the next few years, more new brands will appear in the small household appliance market and will undergo a major reshuffle. At present, small household appliances are still in the state of ‘headless’, but a mature industry will run out of the top enterprises, otherwise it will be unhealthy and the allocation of resources will be unreasonable.” Liu buchen said.
For small household electrical appliance enterprises how to stand firm in the tide, Liu buchen believes that they should focus on building their own moat from the two aspects of industrial design and developing the international market. “I am more optimistic about the high-end brands played by some small household electrical appliance enterprises, such as some new brands launched by covos and Xinbao, which are positioned at the high value of products rather than low price from the beginning. This is to make efforts to break the situation of differentiation.”
Zhang Jianfeng, executive deputy secretary general and spokesman of China household appliance business association, said in a media interview, “the key for small household appliance enterprises to increase R & D investment in the future is to develop new categories rather than increase R & D on inherent products. For example, small kitchen appliances, we should make more healthy and ecological transformation, open up the pre meal and post lunch, and realize the interconnection of food material procurement, storage, preservation, steaming, frying and baking.”
As for the confrontation between traditional brands and large-scale comprehensive household appliances in the current small household appliance market, Liu buchen said that each has its own competitive advantages. Although compared with large-scale comprehensive household appliances, most traditional small household appliance enterprises have single online sales, do not have omni-channel sales advantages, and the chassis is relatively thin. However, at present and in the future, online is still the main channel for the sales of small household appliances, and consumers will also have brand tendency. “Different brands have different fist products, and we won’t go to a brand store that is good at air conditioning to ask if there is an air fryer.”
(at the request of the interviewee, Tong Jia, Yang Ke, Zhou Min, Li Qing and Wei Xi are pseudonyms)
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