Towards the end of the year, the small home appliance industry showed explosive growth, and individual companies’ export value increased by more than 600%, but the news was mixed.
It is naturally because of the increase in turnover and the recovery of the entire industry. Looking back at the first two months of this year, Midea Group’s sales revenue increased by 17% year-on-year, Joyoung shares increased by 32% year-on-year, and Xiaoxiong Electric(NB TSIDA) increased by 17% year-on-year. The sharp increase in sales has promoted the soaring of the stocks of small home appliance companies. Since April, the sales of small home appliances nationwide are still booming, with orders for small home appliances increasing by 103.5% year-on-year. In the first half of the year, my country’s exports of electric frying pans, bread machines, and juicers increased by 62.9%, 34.7%, and 12.1%, respectively, becoming a growth highlight. .
In terms of categories, the export of small household appliances such as kitchen, environment, health and other related housing economy accounts for a larger proportion. The peak sales season of small household appliances this year lasted until August, and the export volume gradually increased in September.(NB TSIDA)
This is due to the impact of the epidemic. In the early stage of the outbreak, foreign countries had a certain amount of demand during the outbreak period. Some foreign areas that did not have this demand before have a certain amount of demand. After September, in the anti-epidemic fatigue period, the demand has declined, resulting in the off-peak season. Now that the new year is approaching, the demand has picked up again.
However, what we need to worry about is the impact of the “explosive orders” on the industry structure. The popularity of small household appliances has led to overcapacity caused by businesses to follow suit. In fact, this year’s popularity of small household appliances is an accident. Secondly, there are few types of domestic small household appliances and rapid replacement. The hottest models of the company are not necessarily the hottest models of next year, and it is difficult for merchants to infer the market next year based on the situation of this year, which is not conducive to long-term development.(NB TSIDA)
This leads to some deeper problems-the lack of talent in the small home appliance market.(NB TSIDA)
Post time: Nov-26-2020