The growth potential of small household appliances market is considerable
The expanding market scale and relatively rich profit level make small household appliances known as the last bucket of gold in the household appliance industry in 2008.
According to CCID consulting data, the sales of small household appliances reached 68.55 billion yuan in the first three quarters of 2007. In 2007, real estate developers increased their development efforts, which stimulated the upgrading of old household appliances and the purchase of new household appliances, among which kitchen and bathroom small household appliances dominated, accounting for 80.7% of the sales of small household appliances in the first three quarters of 2007. On the export side, the situation of small household appliances is also very gratifying. According to CCID Consulting's data, the export of small household appliances grew gratifying in the first three quarters of 2007, with the export volume reaching 730 million units, an increase of 13% over the same period in 2006. In terms of distribution, it is mainly concentrated in Europe, America and Asia, accounting for 88% of the export volume.
According to a data from CCID Consulting, the foreign market demand will reach 1 100 million units in 20 1 year, and the domestic demand is expected to reach10.6 billion units in 20 1 year. Generally, the average household ownership of small household appliances in Europe and America is 37, while there are only three or four in China. From this perspective, the growth potential of China small household appliances market is very considerable.
Compared with black appliances and white appliances, the profits of small household appliances are relatively rich. According to industry insiders, the gross profit level of small household appliances industry is between 15%-30%. It is reported that Midea has set a target of increasing the profits of small household appliances by 30% to 40% this year. In traditional manufacturing areas such as Dongguan and Shunde, there are many foundries with annual revenues exceeding 100 million, and thousands of workshops are profitable.
Global production capacity swarms to China.
Similar to the black and white home appliance market, the global small household appliance production capacity is moving closer to China. At the same time, local small household appliances brands in China are moving towards a unique international road, from OEM to ODM, from product export to brand export.
According to the data from Fuji Economy, in 2006, the output of cooking related products in China's small household appliances market accounted for 7 1. 1% of the global market. This figure is expected to continue to increase at 20 1 1, reaching 76.5%. Due to the low production cost, foreign small household appliances such as coffee makers and toasters have been produced in China.
In addition to directly building production bases in China, foreign-funded enterprises also directly enter the China market through mergers and acquisitions. Recently, the relevant person in charge of French SEB Group told reporters that after its acquisition of Supor, Supor will increase the OEM of its European and American products. If SEB Group wants to expand in the Southeast Asian market, it will also benefit from Supor's factory in China.
At the same time, the transformation of China manufacturers from OEM to ODM is also accelerating. According to the analysis of Fuji Economy, China manufacturers are getting rid of the OEM production of foreign-funded enterprises and using their own brands to expand their influence in China and surrounding areas. In fact, the small household appliance manufacturing enterprises in China have experienced more than ten years' development from OEM to now, and have made great progress in production, R&D and design. At present, they already have the foundation of ODM and even brand output.
Su Xianze, chairman of Supor, told reporters that OEM is a very special strategy of Supor. In recent years, Supor has gradually turned from OEM to ODM. "Supor OEM is a process, not an end." Su Xianze said.
However, it is difficult for China small household appliances brands to really enter the western market. According to industry insiders, small household appliances are mostly integrated with local life and eating habits and have strong national characteristics. China manufacturers do not have unique technical and brand advantages in products with western characteristics, such as coffee machines and ovens, while China manufacturers have advantages in products that conform to oriental diets and living habits, and only in the Asian market can they give full play to their influence.
The pressure of industry integration has increased
It is understood that at present, there are more than 1 100 enterprises engaged in the production of small household appliances in China, and the production enterprises are mainly concentrated in Guangdong, Jiangsu and Zhejiang, among which Guangdong small household appliances production enterprises account for more than 60%. In the domestic market, although domestic brands occupy most of the small household appliances market, the high-end market is mainly occupied by foreign-funded enterprises.
In recent years, the high profit rate and huge potential market capacity have attracted various home appliance enterprises to extend to the field of small household appliances, and major home appliance manufacturers have also positioned small household appliances as one of the core industries, such as Aucma and Midea, and their small household appliances business has developed rapidly and made considerable profits. At the same time, foreign brands have also increased their right to speak in the field of small household appliances, and they are further staking their land in China by acquiring joint ventures.
Market participants believe that the competition of various enterprises in the small household appliances market will become one of the highlights in 2008, and the pressure of industry integration will be amplified. Because the technical content of small household appliances is relatively small and the products are similar, the problem of plagiarism and imitation of small household appliances is particularly serious. According to the analysis of insiders, small household electrical appliance enterprises generally have the weakness of heavy scale and light research and development, which makes patent disputes rise continuously in recent years and intensifies homogenization competition.
Xu Xiaoyan, an analyst with CCID Consulting, believes that with the introduction of a series of national energy efficiency standards, energy-saving and environmentally friendly small household appliances have become the general trend, and the green industrial chain will be improved; Small household appliances industry will be reshuffled, many enterprises will be marginalized, and brand concentration will continue to improve; The transparency of prices and the narrowing of profits are becoming more and more obvious in low-end small household appliances. Enterprises will seek quantity from the low end and profit from the high end, adjust product positioning and create a high-end image; At the same time, the third-and fourth-tier markets with growing consumption capacity will become the target of small household appliances enterprises.