This week’s research focuses on the annual performance of small household appliance industry from the perspective of business consultant
At the beginning of the year, we judged that the capacity expansion of emerging small household appliances will be more obvious in 2021, and the gap between the overall growth rate and the required household appliances will expand. Through this paper, we verified the development of the small household appliances market, and believed that the high boom of emerging categories will continue, and the improvement of optional household appliances consumption is expected to become a long-term trend.
Small kitchen appliances: the just needed categories grew steadily, and the growth rate of emerging categories was under pressure, but there was still a bright performance. Turnover: the rigid demand category grew steadily, and the growth rate of emerging categories was under pressure, but there was still a bright performance. The penetration rate of rigid demand categories is high, the annual demand is relatively stable, and the growth rate remains stable. On the one hand, due to the short life cycle of some emerging kitchen and electric appliances and the demand for overdraft in 2020, the transaction volume of categories such as health pot and multifunctional cooking pot will be under pressure in 2021. Competition pattern: the newly needed category meijiusu has an advantage and its share is stable. The emerging category has entered a stable period with the life cycle of popular products. At the same time, meijiusu and other traditional small household appliance brands have also begun to enter relevant sub circuits, resulting in the trend that the single category competition pattern with relatively large turnover in the emerging category tends to concentrate on the head category, The competition pattern of single products with small turnover is still scattered.
Clean electrical appliances: many brands have entered the market, and the high view of emerging categories continues. Turnover: thanks to the attention of consumers to the healthy home environment brought by the epidemic catalysis, the overall prosperity of clean appliances has been high since 2020, and the high outlook will continue in 2021. Competition pattern: the market share of vacuum cleaner brands remains relatively stable, and Dyson’s leading position is stable. The proportion of floor sweeping Siasun Robot&Automation Co.Ltd(300024) brand CR3 reaches 64%, and the concentration increases year by year. At present, the industry as a whole is driven by price. Next year, with the emergence of more self-cleaning sweeper products, we expect that the sweeper market will turn to volume growth to drive the growth of the industry. Floor washing machine: Tianke can successfully define the category of brand through product form innovation. In 2021, many brands such as stone, chase and Youli will enter the floor washing machine market. We expect that with the addition of more brands, the industry competition will continue to intensify, but therefore the high outlook will continue.
Personal care & massage appliances: the category growth is good, and the pattern of massage equipment is scattered. Turnover: the growth of personal protective appliances is relatively stable. In terms of massage appliances, the growth of small massage equipment was stable, and the turnover of large massage chairs declined in 2021. Competition pattern: the main brands of razors remain relatively stable; Hair dryer Dyson grew steadily and its leading position was strengthened. The market share of Feike hair dryer was under pressure in 20 and 21 years. Massage chair: there are many and miscellaneous online brands, which leads to the scattered overall competition pattern on the line, but the competition pattern will be relatively concentrated due to the advantages of large offline brands in terms of channels. The massage equipment market is very scattered. We believe that the head brand which has an advantage in the subdivided categories does not occupy a high market share in the whole massage equipment due to the large number of categories of portable massage equipment.
Smart micro Investment: the smart micro investment market continues its high boom, and a duopoly market of Jimi + nuts has been formed. In terms of competition pattern, the market share of the three domestic brands Jimi + nut + dangbei continues to grow, the share of other brands is low, and the duopoly pattern has been formed. We believe that while relying on the favor of young groups for large display devices, intelligent micro investment replaces traditional display devices. Compared with the color TV market with a maximum of more than 50 million units (Euromonitor International), there is still much room for the penetration of intelligent micro investment.
Investment suggestion: the configuration of real estate chain targets is recommended at the current time point. The core related targets are: [ Midea Group Co.Ltd(000333) ], [ Haier Smart Home Co.Ltd(600690) ], [ Hangzhou Robam Appliances Co.Ltd(002508) ], [ Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ]. It is recommended to pay attention to [ Zhejiang Sanfer Electric Co.Ltd(605336) ]. At present, we pay attention to the following considerations: 1) the real estate factors that have caused adverse expectations to the industry since the middle of this year are improving marginally. 2) The cost side is improving. Most household electrical appliance enterprises have carried out price increase hedging in the process of rising costs. It is expected that it will be positively reflected on the statement side in 1-2 quarters after the cost inflection point. 3) Overseas business may be able to maintain stable growth. It is certain that the overseas business of household appliances will decline, but the leading enterprises may not enter the negative range. Based on: 1. The overseas epidemic still exists, and the demand is still driven by the epidemic and house delivery; 2. The shipping cost of head enterprises depends on the new long-term association, which will still be lower than the market level, which is conducive to the concentration of orders; 3. Possible tariff relief is conducive to placing orders. In addition, we believe that under the condition that large liquidity is difficult to shrink, the valuation of household appliances will be more flexible after the upward trend of performance next year. In terms of non real estate chain, we maintain the recommendation [ Jinhua Chunguang Technology Co.Ltd(603657) ], and the core logic is the high prosperity and capacity demand of downstream clean appliances such as floor washers, which will rapidly improve the business of upstream OEM / ODM companies.
Risk tips: the epidemic situation is expanding, and the real estate market, exchange rate, raw material price fluctuation risk, etc.
