\u3000\u30001. What is the global development history and current situation of clean appliances?
Throughout the world, clean electrical appliances have a long history of development. With the acceleration of people’s pace of life, from early vacuum cleaners to floor sweepers and floor washers, the iteration and evolution of products always focus on simplifying cleaning steps and convenient use, so as to optimize the cleaning experience of consumers. At present, in the global clean electrical appliance market, the overseas penetration rate of clean electrical appliances, especially vacuum cleaners, is higher. Clean electrical appliances are more inclined to just need products. At the same time, the products have the characteristics of diversification and specialization; China’s clean electrical appliance market has high growth rate and low penetration rate. In recent years, with the rise of floor sweepers and floor washers, the penetration rate is expected to rise further in the future. From the perspective of cleaning appliance brands, the global cleaning appliance market tends to gradually concentrate on core brands. The market share of overseas traditional cleaning appliance brands has basically remained stable, and the market share of Chinese cleaning appliance head brands has gradually increased in the world.
\u3000\u30002. How to view China’s clean electrical appliance market?
After a large number of self-cleaning floor sweepers and floor washers have entered the market, China’s cleaning appliance market shows a trend of high-end products and brand head. In terms of sales volume, due to the increase of the average price of products, the market scale of clean electrical appliances has maintained a double-digit growth of more than 20%; However, in terms of sales volume, the overall sales volume of cleaning appliances increased by only single digits in 21 years, and the sales growth rate of floor sweepers with the highest proportion was lower. The slowdown in the sales growth of floor sweepers has made some investors worried about whether they have reached the growth bottleneck. We measure the market size of China’s clean appliances and sub categories by benchmarking the development path of Japan’s clean appliances. According to our calculation, by 2025, the sales scale of cleaning appliances / push rod vacuum cleaners / floor sweepers / floor washers will be 6821 / 966 / 1129 / 1337 million units respectively, and the CAGR from 2021 to 2025 will be 20.6% / 12.1% / 20.3% / 38.2% respectively. Through the calculation of China’s clean electrical appliance market and the analysis of the layout of new products of various brands in 22 years, we believe that there is still a lot of room for the development of clean electrical appliances in the long term; In the short term, various brands will also enrich consumers’ choices by broadening the price band and arranging a variety of SKUs, so as to achieve the purpose of increasing both volume and price.
\u3000\u30003. How competitive are Chinese brands in overseas markets?
With the enhancement of the competitiveness of Chinese products, more and more Chinese cleaning appliance brands choose to sell at sea and expand overseas markets. According to the data of jungle scout from 20 to 21 years, the overseas floor sweeper market has a good demand for self dust collection products, and the overall price has a trend of polarization. Compared with the leading brand of overseas floor sweeper iRobot, Chinese brands are highly competitive in product quality and price, and faster in product upgrading iteration than overseas brands. At the same time, they also have better feedback on product reputation. Looking forward to 22 years, we believe that with the introduction of self-cleaning sweepers by Chinese brands, the overseas sweeper market is expected to usher in the upgrading of product structure, and is expected to copy the growth path of China’s sweepers in 21 years, so as to drive the growth of the overall market by the increase of price.
Investment suggestion: looking forward to the next 22 years, in the Chinese market, we believe that by launching different SKUs to cover more price bands, consumers pursuing cost performance will have more choices; At the same time, with the expansion of the price belt, the industry is expected to realize the growth mainly driven by price increase to volume increase, and the penetration rate is expected to be further improved. In the overseas market, we believe that with the introduction of self-cleaning floor sweepers by Chinese brands, the overseas floor sweeper market is expected to usher in the upgrading of product structure, which is expected to replicate the growth path of China’s floor sweepers in 21 years, and the increase of the overall market will be driven by the increase of price. We are optimistic about the development of China’s leading brands of cleaning appliances under the high-profile track of cleaning appliances. We suggest paying attention to Beijing Roborock Technology Co.Ltd(688169) , Ecovacs Robotics Co.Ltd(603486) .
Risk tips: the sales of new products are less than expected, the prices of raw materials are rising, the supply of core parts is in short, the expansion of overseas markets is less than expected, and the market demand is less than expected due to changes in the macroeconomic environment.
