“Don’t be a single champion, be an all-around champion.” This sentence is the best portrayal of the kitchen appliance industry in the past two years.
In the past, when it comes to kitchen appliance brands, people often refer to single-category brands. For example, Boss Electric is a range hood, Martian is an integrated stove, and Wanhe is a water heater. However, in recent years, kitchen appliances have begun to try multiple categories, especially the boss and Fang Tai, who are at the head. They have also upgraded from individual champions to all-round champions, and from category brands to big kitchen appliance brands.
A battle that may affect kitchen appliances for ten, twenty years or even longer has already started. When the industry transition period collides with the real estate cycle, it becomes a question of who runs more stably, who walks more rhythmically, and who A test with a clearer goal.
To be the all-around champion
Since 2018, kitchen appliances have entered a “shift period”. In the past year, kitchen appliances have also been fluctuating, but the growth trend of leading companies is recovering. A financial analysis found that the revenue growth rate of listed kitchen appliance companies is generally more than 20%, which is higher than the industry average growth rate; although the net profit is affected by the thunderstorms of upstream real estate companies, the performance is different, but the bad debt provision is also growing rapidly.
Among them, Robam Electric not only resumed revenue growth, but also achieved good profit performance. Data shows that Robam’s revenue was 10.148 billion yuan, a year-on-year increase of 24.84%; net profit was 133 million yuan, excluding provisions, a year-on-year increase of 17%, returning to double digits.
When the overall growth rate of the kitchen appliance industry slows down, why can it regain growth? Can this growth continue during the property downturn?
In the past ten years, under the high growth of kitchen appliances, various companies have been working hard with their own advantageous categories. With the increase in the popularity of these categories, they have developed new categories one after another, and another wave of category innovation dividends is coming.
Under such a background, whoever can develop new products, new categories, and new markets earlier, and who can cross the new input and output curves earlier, will be able to smoothly complete the transition from the first curve to the second. The transition of the curve will bring another wave of performance growth as soon as possible.
The reason why Robam Electric has achieved double growth is that in the past few years, when smoking hoods were still growing at a high speed, it has foreseen to try new types of exploration. Launched a new product of integrated stove and integrated range hood, and launched a self-developed dishwasher…
Facts have proved that it has eaten a new wave of category dividends. Last year, on the basis of the stable performance of the main products, the new categories of Robam appliances concentrated their efforts and achieved rapid growth in revenue and profit.
The financial report shows that, in terms of categories, the main range hoods and gas stoves will increase by 18.73% and 27.25% year-on-year respectively in 2021. While further increasing the proportion of the industry, the main new categories such as steaming and baking machines and dishwashers will be promoted. It is also growing rapidly, with growth rates of 71.26% and 101.32% respectively last year.
Ultimately, from single category to multi-category innovation, superimposed on the in-depth cultivation of market segments, it has become the “method” for kitchen appliance leaders to resist the cycle and grow against the trend. At present, in the engineering channel, the proportion of Robam’s revenue from new houses has decreased, and customers from state-owned developers have been introduced; in the retail channel, the sinking market has been expanded.
From individual champions to all-around champions, from focusing on a certain channel to making efforts in all channels, what is in front of Robam Electric is a new kitchen and a new era of growth.
Victory in a new era
As the market enters the stock stage, the performance of kitchen appliances is supported by the average price increase brought about by product iterative renewal in the medium term, and the expansion of categories, product upgrades and share concentration in the long run.
According to CMM data, from 2014 to 2020
In 2018, the average sales price of domestic brands in offline KA channels increased from 2,554 yuan/unit to 3,352 yuan/unit, and rose to 3,676 yuan/unit from January to October 2021. China Merchants Securities predicts that in the future, the iterative update of products led by top brands and the push for new sales will continue to guide the industry’s average price to rise, which is expected to support medium- and long-term scale growth.
In the long run, new demand is the driving force. In the stock era, where do new demands come from? The first is the demand for redemption of categories such as hoods and stoves, the second is the demand for additional purchases of dishwashers, steaming and roasting machines, and the third is the demand for refurbishment of old houses.
In fact, these needs are unified under the “scenario intelligence” – after the fire 1.0 era and the electrification 2.0 era, Chinese kitchens are entering the scene intelligence 3.0 era. There are two cores, one is “scenario”, that is, from single product to All categories and all scenarios; the first is “intelligence”, which develops from functionality to intelligence: the former corresponds to the demand for additional purchases and reloads, and the latter corresponds to the demand for redemption.
According to the needs of users, He Yadong, senior vice president of Robam Electric, calls it the era of digital cooking: the first stage of cooking needs of users is to make food from raw to cooked, the second stage is to improve the cooking environment and reduce the inconvenience caused by cooking labor, and the third stage The stage is to treat cooking as a hobby, use digital and intelligent means to reduce the dependence on cooking skills, and stimulate the love of cooking.
Based on the cooking needs of users at different stages, categories such as range hoods, gas stoves, all-in-one machines, and dishwashers have achieved rapid development. As a new generation of consumers longer than the Internet leads the kitchen industry, all categories and intelligence will be the evolution direction of kitchen appliance companies for a long time.
The deep-seated reason for the rapid and sustainable growth of Robam Electric is that it has entered a new era and has gained a first-mover advantage. Its new category layout is very early, such as dishwashers, which started five or six years ago. With the layout of other new categories, the boss gradually moved from range hoods to multi-category and even the whole kitchen scene.
“The development of an enterprise’s categories is based on order. We have the energy to support the expansion of other categories only when we have successively achieved the status of industry leaders in each category.” In He Yadong’s view, the logic of category expansion of Robam is very clear. .
With the launch of “Boss” integrated stove and refrigerator products on March 30, 2022, the category layout of Boss appliances has become more complete, forming scenes that include pre-cooking, mid- and post-cooking, and these products are also combined into scene intelligence and a complete set of cooking. solution.
As a scene that is second only to the living room and includes the largest number of home appliance categories, for the current kitchen appliance enterprises, the opportunity in the new era of kitchen appliances lies in the intelligent upgrade of traditional categories and the mining of old needs; ” new consumption stimulus. The new era, new challenges, and new opportunities are especially true for leading kitchen appliance companies.
head potential
On the one hand, the growth rate of large industries is slowing down, and on the other hand, the growth of listed companies is more than 20%. The market structure of the kitchen appliance industry is accelerating to the head. According to the data of Zhongyikang, in 2020, the KA channel CR2 (Boss + Fangtai) under the kitchen wire will be
38.0%, an increase of 8.1 percentage points compared with 2014, and continued to increase to 42.4% in 1-10 in 2021.
In the new era of kitchen appliances, as mentioned above, the consumption characteristics are “N in the area”. In the past, one piece was sold, but now one sold is N pieces, and it is possible to serve this consumer for life. This means that the Matthew effect of the strong and the strong will play a more prominent role in this era. The layout has been completed in all categories and intelligence, and the head power of Robam appliances that have entered a new production cycle will also become more and more obvious.
With the advent of the new era, the competitive logic of China’s kitchen appliances has changed. How to establish advantages in products and markets before, and now, how to copy and iterate the advantages accumulated in a single category to other categories to form a comprehensive Scenarios, potential energy of all categories, and ultimately serve users.
“If your eyes are always on growth, you will not necessarily be able to exchange for growth. When your eyes are on what users like, your results will naturally achieve better growth.” Robam will grow its own The logic is called “user communication”. It hopes to communicate with users through high-end brand adherence, direct channels, scenarios, and services to compete for “user likes”.
In the past, the boss has established a certain threshold of competition, including brand, channel, production and so on. In terms of production, its future factory is the first smart unmanned factory in China’s kitchen appliance industry, with higher production capacity and yield; in terms of channels, it has nearly 10,000 stores and nearly 30,000 sales and service personnel across the country. ; On the brand, “Boss” has become synonymous with high-end kitchen appliances.
The rapid growth of new categories shows that Robam has extended these advantages to the full kitchen scene and all categories. According to the data of Aowei Cloud, in 2021, the market share of the retail sales of “Boss” brand range hoods, gas stoves, and kitchen electric packages will be 30.50%, 29.30%, and 30.40%, respectively, up 2.26, 3.50, and 2.40 percentage points year-on-year. Ranked first in the industry.
This has brought both revenue expansion and efficiency improvement to Robam Electric. On the one hand, as Robam appliances move towards the whole scene and towards emerging cooking categories such as steam-bake all-in-one machines and dishwashers, there are still several times of growth prospects.
Taking the integrated stove market that “Boss” officially entered in March this year as an example, compared with the popular range hoods and gas stoves, the ratio of the retail sales of integrated stoves to the retail sales of range hoods in 2021 is about 1:7, which is comparable to that of gas stoves. The ratio of retail sales is close to 1:8. Based on this calculation, ideally, the boss has 6 times more space in the integrated stove market.
On the other hand, the sooner you enter the new era and the earlier you start internal integration, the sooner you can “build muscle”. Another growth point of Robam Electric is the improvement of profits – the more terminal products and sales, the more the cost investment in production, R&D, and channels can be diluted, and the efficiency will be improved.
Epilogue
There are three stages of enterprise development, market-driven development, leadership-driven development and innovation-driven development. In the past ten years, kitchen appliance companies have mainly relied on market-driven development, and anyone can become a big fish under the flood of water. As the market enters the stock stage, kitchen appliance companies must rely on leadership and innovation to drive growth.
In Robam, leadership and innovation are fully displayed, taking users’ likes as the “origin”, and stepping out of the future for themselves step by step and rhythmically.
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