Small household appliances are experiencing a "low demand valley", and the industry is entering a period of contraction and adjustment

The small household appliances that quickly became popular by riding the e-commerce trend unexpectedly fell into a slump during this year's Double 11. According to AVC data, on Double 11, 2023, the online retail sales of 14 categories of kitchen appliances reached 4.22 billion yuan, a year-on-year decrease of 16.7%; The online retail volume was 21.9 million units, a year-on-year decrease of 12.2%.

In addition, during the "Double 11" promotion period, nearly six finished products of 14 categories of small kitchen appliances, including soybean milk machines, juicers, air fryers, wall breakers, health pots, etc., saw the industry average price decline. Among them, the juicer with the most price reduction was the juicer, with an average price dropping from 316 yuan to 220 yuan, followed by the wall breaking machine, with an average price dropping from 404 yuan to 367 yuan.

Behind the cooling off of small home appliances on Double Eleven is the overall industry entering a "low demand valley". Data shows that from January to September this year, the overall retail sales of kitchen small appliances were 38.86 billion yuan, a year-on-year decrease of 9.6%; Among them, online retail sales reached 29.61 billion yuan, a year-on-year decrease of 9.9%; The offline retail sales amounted to 9.24 billion yuan, a year-on-year decrease of 8.9%.

Consistent with the overall industry environment, we have seen that listed companies mainly engaged in small household appliances have relatively weak overall performance growth in the first three quarters of this year. Specifically, among the 12 small home appliance listed companies, only 5 companies, including Supor, Xinbao, Xiaoxiong Electric, Biyi, and Rainbow Group, achieved revenue growth in the first three quarters of this year, while the remaining 7 companies saw a year-on-year decline in revenue.

As a leading player in the domestic cookware and kitchen appliances industry, Supor achieved a double increase in profits in the first three quarters of this year, but the growth rate was relatively small. According to the financial report, Supor achieved a revenue of 15.367 billion yuan in the first three quarters of this year, a year-on-year increase of 2.58%; The net profit attributable to the parent company was 1.362 billion yuan, a year-on-year increase of 4.07%.

As the only small home appliance export leader in the industry with a revenue scale of over 10 billion yuan, after Subor, Xinbao Group's operating performance in the first three quarters of this year showed a situation of "increasing revenue without increasing profits". According to financial report data, Xinbao Group's revenue in the first three quarters was 10.755 billion yuan, a year-on-year increase of 0.34%; The net profit attributable to the parent company was 736 million yuan, a year-on-year decrease of 12.78%.

Another well-established listed company in the kitchen small appliances industry, Jiuyang Group, has not seen any improvement in its performance since falling into a dilemma of negative growth in both revenue and net profit in 2021. Data shows that Jiuyang Group achieved a revenue of 6.781 billion yuan in the first three quarters of this year, a year-on-year decrease of 2.08%; The net profit achieved was 364 million yuan, a year-on-year decrease of 27.96%.

Beiding Group, which is taking a high-end route, has been under continuous pressure on its performance since the beginning of this year. According to the financial report previously disclosed by Beiding Group, the company's revenue in the first three quarters of 2023 was 472 million yuan, a year-on-year decrease of 11.73%; The net profit attributable to the parent company was 52.3581 million yuan, a year-on-year increase of 96.01%.

Whether from industry data or the third quarter reports of enterprises, the small home appliance industry has entered a period of contraction and adjustment, and the entire market is gradually fading away from noise and returning to calm.