Industry perspective
Industry growth: at the current time point, we believe that the Growth Logic of integrated stove based on products and driven by channel expansion and marketing has not changed. The industry achieved a sales volume of 3.04 million units in 2021, a year-on-year increase of + 27.7%. We expect that the sales growth rate in 2022 will reach 22% and the penetration rate will increase by 3.4pct year-on-year.
At the end of marketing, tiktok is still actively adding the content platform of Xiaohong book and jitter, while home ownership makes the content platform flow increase even after the epidemic has been repeated.
On the channel side, the sales of offline dealers' stores continued to develop steadily, and the multi-channel expansion such as home decoration and sinking provided a new growth driver; The online channel has gradually developed, with the proportion of sales increased to 26% in 21 years. At the same time, online traffic is fed back by offline traffic, which complements each other. Looking forward to the follow-up, offline distribution stores are still important and main channels. The endogenous growth of stores is superimposed on the new stores, and high-quality big businesses replace small businesses to drive high growth, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) mutual empowerment, while emerging channels such as home decoration and sinking still have many blank areas to explore.
From the perspective of city level, channel expansion is also promising. Integrated stove enterprises starting from the third and fourth tier cities are gradually marching into the first and second tier cities with greater market capacity. With the increase of relevant policies, the transformation of the old residential areas in the first and second tier cities is expected to gradually expand and open the market. The third and fourth lines were originally the advantageous market of integrated stoves, and the rural ownership of kitchen electricity is low. With the support of the policy of home appliances to the countryside, there is still a lot of space in the third and fourth lines and the rural market.
On the product side, the average price of the industry has continued to rise in the past 21 years. On the one hand, it is due to the optimization of product structure. The attribute of kitchen electricity industry makes consumers have a high acceptance of medium and high-end products. In the past 21 years, the proportion of high-end integrated steaming and baking products and independent steaming and baking products has increased significantly. On the other hand, it is due to the fact that the leader has raised prices to downstream dealers under the pressure of rising raw material prices, reflecting strong bargaining power. Looking forward to 2022, the integration of steaming and baking is steadily improving, and the independence of steaming and baking is expected to further develop. Several brands have successively launched independent products of steaming and baking, and the sales proportion is expected to further increase.
Competition pattern: the leader has strong competitiveness, and the advantages of multi brand entry outweigh the disadvantages
In the past 21 years, the CR3 of integrated stoves remained at about 45%, the offline concentration decreased slightly, while the online concentration increased significantly. The offline and online CR3 increased significantly year-on-year by - 1PCT, + 8pct, Marssenger Kitchenware Co.Ltd(300894) and Yitian respectively.
With the high prosperity of the integrated stove industry, various brands have entered the market in recent two years. We believe that multi brand entry, first of all, will greatly promote consumer education, and the industry penetration ceiling is expected to increase. Secondly, brand marketing and channel construction are the key competitive elements of kitchen electricity. The entry of kitchen electricity leaders such as boss and Fangtai may have a certain impact on the competition pattern of the industry, while brands that have not yet accumulated strong consumer reputation in the field of kitchen electricity have a relatively small impact. Finally, for professional brands of integrated stoves, for enterprises with high share and gradually formed brand strength, the short-term impact is relatively small, and small and medium-sized brands may be cleared quickly.
Investment advice
The entry of multiple brands has further promoted the breadth of consumer education and channels in the industry. The certainty of industry expansion is relatively high, and the penetration rate of integrated stoves is increasing rapidly. Under the intensified competition and supply side pressure, the leader's share has increased significantly, reflecting the leader's excellent ability to deal with risks and expand. It is suggested to focus on grasping the two essentials of focusing on marketing + high-end positioning. The power washing category is expected to contribute to the increment of integrated stove leader Marssenger Kitchenware Co.Ltd(300894) , the reform effect is becoming more and more obvious, the channel quality is improved, the income is continuously released Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , and the main brand power integrated stove, the high-end kitchen electricity leader with prominent channel and brand advantages Hangzhou Robam Appliances Co.Ltd(002508) .
Risk tips
The risk of intensified industry competition, the risk of rising raw material prices, and the risk that the penetration rate of integrated stoves is lower than expected.
