Where will the Small appliance industry go after the flow dividend fades?

Recently, the news that Delma, a Small appliance enterprise, landed on the science and technology innovation board has attracted the attention and reports of major media and industry institutions. From the perspective of development strategy, Delma is committed to "multi brand, multi category, and globalization"; From the perspective of core business, the company focuses on researching and developing vacuum cleaning, water health, and personal health products; From the perspective of marketing model, the company has identified the dividend period for the development of new e-commerce. It can be seen that behind Delma's success in "going out of the circle", it also reflects the positive exploration of Small appliance enterprises in the uncertain era.

In 2023, along with the economic recovery, the household appliance industry will recover as a whole. However, due to weak consumer demand and other factors, the share of each category in the Small appliance industry will be differentiated. Against this background, the race track competition of Small appliance will become increasingly fierce, among which the kitchen small appliances and life Small appliance once showed the trend of exchanging price for volume. At the same time, with the saturation of demand for traditional categories, the iterative upgrading of product technology will also become a problem for the Small appliance industry, How to seek an incremental market in the competition has obviously become an urgent need for Small appliance enterprises.

Online consumption changes the market pattern of Small appliance

Small appliance refer to household appliances other than high-power and large volume household appliances (such as refrigerators, washing machines, air conditioners, etc.), which can be divided into Small appliance for kitchen and bathroom, Small appliance for home use, and Small appliance for personal care. According to the analysis of the growth black box research report, with the popularity of the traditional household appliances, the Small appliance track has become busy and crowded, and the "Small appliance, big market" has evolved into the basic pattern of the industry.

According to Delta's prospectus, as an innovative home appliance brand enterprise, the company still focuses on online sales, supplemented by offline sales. After nearly a decade of development, Delta has accumulated rich internet marketing capabilities and fully covers mainstream e-commerce platforms in China. In addition, by actively utilizing emerging marketing methods such as live streaming and short videos, the company has achieved significant sales growth. Data shows that from 2020 to 2022, the company's online sales revenue was 1.372 billion yuan, 1.507 billion yuan, and 1.79 billion yuan, respectively, accounting for 61.68%, 49.68%, and 54.23% of its main business revenue. Therefore, online channels remain Delmar's main source of revenue.

In fact, it is not uncommon for Small appliance enterprises to seize market share by using flow dividends. As the Small appliance track has a large profit space, its categories are more diversified, which also promotes Small appliance enterprises to have more development opportunities. From the perspective of enterprise development strategies, most brands have successfully "exited the circle" by creating popular products with the help of Internet traffic dividends.