Analysis of the reasons for the short life cycle of Small appliance market

In the three years after the epidemic, Small appliance have emerged as a new force in the market, which is dazzling and dizzying. It is often possible to see some new products become popular. Although this phenomenon is eye-catching and trendy, its persistence is not strong, often appearing as a flash in the pan and then disappearing or sinking.

It has to be said that an important feature of Small appliance is that they are dazzled when the fire rises, but they will soon become extinct in the market. It is not possible for traditional electric appliances to remain hot for decades, as washing machines, refrigerators, and air conditioners have a history of decades or even hundreds of years.

This should start with the practical use of different types of products. Fruit and vegetable cleaning machines, air fryers, air purifiers, even vacuum cleaners, sweeping robots, washing and dragging machines that have suddenly become popular in recent years, as well as camping appliances that have recently become popular, all have similar problems. Before buying, I felt a great need and looked forward to it. After using it, I didn't feel as good as I had imagined, and many features were exaggerated and exaggerated by internet celebrities.

According to traditional channel promotion data from AVC, both offline and online sales of Xiaodian decreased in 2022. Among them, the retail sales in the online market reached 38.60 billion yuan, a year-on-year decrease of 2.9%; The retail sales in the offline market reached 13.43 billion yuan, a year-on-year decrease of 16.0%. Although Ovi Data is a product of kitchen Small appliance, the trend also shows the fact that the market is declining.

Just like this, big manufacturers think that Small appliance account for too small a proportion of business, and it is not worth investing a lot of resources in Small appliance. Therefore, investment in research of Small appliance, including capital, manpower, and security, is insufficient. On the contrary, it is those investors who have newly entered the home appliance industry who, without the attention of major manufacturers, have reduced their pressure and become projects with low threshold, small investment, and quick results.

For example, Kevos, Feike Electric, Roborock, Jiuyang Co., Ltd., Xiaoxiong Electric, Fujia Co., Ltd., Aojiahua Co., Ltd. and Beiding Co., Ltd., which are listed companies in the industry, are new investors mainly in Small appliance. Instead of struggling in the traditional household appliances industry, they are willing to seek opportunities in the field of Small appliance and play their own world. Obviously, if they enter the traditional home appliance industry, they will be suppressed by existing traditional big manufacturers.

Why do new entrants to the household appliances industry choose the Small appliance industry? There are several aspects: first, the threshold of Small appliance is low, unlike the high requirements of factories, production lines, funds and channels involved in electric products, even Original equipment manufacturer can be used for brand operation; Second, the R&D cycle of Small appliance is short, and it is easy to return investment in the short term; Thirdly, there is no need for particularly large capital investment. Large household appliances are mature industries, and new entrants must invest heavily if they want to, otherwise the production line, research and development, and promotion cannot keep up with the market pace; Fourth, Small appliance are easy to produce new products; With the improvement of people's living standards, the emerging Small appliance are easy to become popular from scratch; Fifth, it is relatively easy for Small appliance to enter and exit. If the investment is small, it cannot meet expectations, and the cost of exit is relatively low; Sixth, it avoids the suppression of traditional large enterprises and is relatively easy to establish a foothold in the market.

From the characteristics of small household appliances, there are many categories, low value, short life cycle and rapid replacement. Therefore, come and go quickly, and it is possible to disappear within a few days of standing on the air. Unlike traditional electric products, although constantly iterating, the category can continue for decades, or even hundreds of years. The vast majority of Small appliance can be popular for a while, but it is difficult to continue for a long time.

The reason why Small appliance are just a flash in the pan is mainly because of the technological innovation of a large number of Small appliance to meet the temporary demand. Once the enthusiasm fades, the products will naturally disappear. Moreover, the main body of Small appliance product innovation is not large enterprises, but small and medium-sized enterprises' tricks to win users' attention in order to please users. Of course, it is not ruled out that the technological and functional innovation of some Small appliance can not really hit the user's pain points.

However, at the beginning of the COVID-19 in 2020, people spent more time at home. On the one hand, it accelerated the use of Small appliance; On the other hand, Small appliance are suitable for online sales because of their low value. Various factors have contributed to the market explosion of Small appliance, forming a vent for Small appliance for a while. Obviously, this phenomenon cannot last forever

However, it should also be noted that Small appliance are consumer upgrading products rather than just needed products, and more emergency household appliances. With the right products and timing, it is possible to create a hot market for air vents. Because there is no rigid demand, it is easy to pass by with a fresh plan. The product attribute is also an important reason why large traditional household appliances manufacturers are unwilling to spend more energy on Small appliance.

The reality is that, as the epidemic continues to become the norm, and there is no emerging category of Small appliance, the Small appliance market has disappeared from the wind. This also confirms the statement that Small appliance are easy to flash in the pan. However, people are still looking forward to the emergence of Small appliance that can bring value to life, thus accelerating the change and improvement of people's quality of life.

Summary: Small appliance belong to consumer upgrading products, not just users' needs. With the right products and timing, it is possible to create a competitive market. However, since it is not a rigid demand, it is easy for a fresh idea to disappear, and market reality has repeatedly confirmed this phenomenon.