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Ecologically overweight, how does Haier Zhijia "seventy-two changes"?

Text | Rust-free bowl

The capital market smelled of harvest.

On the evening of April 29, Haier Zhijia (600690.SH) released the 2021 quarterly report. According to the report, Haier Zhijia achieved operating income of 54.8 billion yuan in the first quarter, a year-on-year increase of 27%; of which, China's revenue increased by 29.5% year-on-year; overseas revenue increased by 24.6% year-on-year.

In terms of overall performance, Haier Zhijia not only continued its performance growth trend in the second half of 2020, but also performed well compared to the same period in 19 years.

Correspondingly, only a year ago, the market still had doubts about the transformation of Haier Zhijia.

However, with the release of this quarterly report, Haier Zhijia, who has entered the deep-water transformation zone, finally repaid investors' waiting with actual performance.

At this time node that is related to the future trend of the white goods market, Caijing Wuji will also use the analysis of the following three issues to find the enlightenment that Haier Zhijia’s "Nirvana" will bring to the market:

1. Why is the scene the "only solution" for the future of the home appliance market?

2. How does Haier Zhijia balance the quality and efficiency of reform?

3. How does ecology help brands to cross the time cycle?

The "full-scale outbreak" of Haier Zhijia

Objectively speaking, compared with the first quarter of 2020, the revenue of the three major white power giants all have explosive growth.

What's interesting is that brands that are also welcoming skyrocketing revenue have completely different attitudes in the capital market.

Along with the successive announcements of the statements, Xingquan Fund also recently announced the position of the first quarter. Among them, the position of Haier Zhijia increased from 4,416,500 shares to 63,366,500 shares.

To some extent, the trend of Xingquan Fund is just a microcosm of the overall attitude of the market.

With the same growth data that has broken a hundred, why has Haier Zhijia become the "sweet and pastry" in the eyes of capital?

There are roughly two reasons:

First, among many brands, Haier Zhijia’s growth is not compared to the bleak revenue growth during the epidemic, but a real breakthrough compared to the same period in 2019.

From this perspective, other brands are more like gradually "recovering strength" from the epidemic stage, while Haier Zhijia is "recovering strength" after its skill is restored.

Second, Haier Zhijia has entered the performance realization period as a whole, with even stronger potential.

This point can be seen from the data on the revenue side.Although the revenue of the parties in the first quarter is not much different, it is not difficult to find that the revenue structure of Haier Zhijia and the other two companies has diverged. .

Comparing the revenue composition of the three white appliances, Haier Zhijia is already the only company that is "not partial to science" and can sell all categories.

Revenue composition of Haier Smart Home

Midea's revenue composition

Gree revenue composition

Behind this, in addition to Haier Zhijia's own strong strength on the product side, what is more important is the difference in business models between the two parties.

At present, the other two are mainly driven by air-conditioning single products and electrical products. Haier Zhijia has already jumped out of this track first, seeking to impress consumers with the scene of smart homes.

With the tightening of the real estate policy, the housing market has gradually returned to rationality. What follows is the decline of the home appliance industry from the incremental market to the stock market. In this process, only by exerting efforts to experience and impressing consumers with the help of scene ecology can the brand have the capital to be proud of the future.

Compared with the “air conditioners”, “refrigerators” and “microwave ovens” of other brands, the ecology of Haier Smart Home has obvious advantages in linking home appliances, building smart home scenes, and a better life experience. It also strategically seizes the industry. First opportunity.

In the future, a consumer who chooses other home appliances will not reject Haier's products; and those consumers who choose Haier's smart home will spontaneously reject products of other brands for the sake of overall interactive experience.

From this perspective, Haier Zhijia, who has grasped the "scenario" as the "single solution" in the future, is already invincible.

The Change Methodology of the Hidden Champion

In addition to that, from all-category home appliance brands, to all-scenario brands, and then to IoT ecological brands, Haier Zhijia is amazing, not only for its keen sense of market wind, but also for their leading market expectations. Speed ​​of change.

Taking the transformation of the IoT ecological scene as an example, from the sale of network devices to the sale of a complete set of scene solutions, the efficiency of Haier Zhijia's elephant turning is far beyond imagination. When the market judges that Haier Zhijia will still be dormant, this The brand scene has quietly landed and contributed revenue.

This is particularly evident in the quarterly report released this time. During the reporting period, Haier Zhijia APP's daily activity increased by 584% year-on-year, and monthly activity increased by 1484% year-on-year; network appliance sales increased by 59% year-on-year, and network appliance binding volume increased by 151% year-on-year.

Looking at the industry, it is not only Haier Zhijia who perceives the opportunity of evolution among the three giants of white appliances. The same diversified Midea and Gree are constantly facing resistance from the market in the process of change.

What does Haier Zhijia rely on to balance the efficiency and quality of reform? In this, in addition to the strategic level of foresight, it is also due to its strength.

As mentioned in the previous article, many people are often "confused" by the scenes of Haier Zhijia, while ignoring the brand's powerful strength in all categories of electrical appliances and high-end appliances.

The quarterly report shows that the high-end brand of Haier Zhijia, Casarte, has achieved an 80% increase in revenue, and the proportion of revenue has further increased, and the share of high-end products is absolutely leading the market. According to data from Zhongyikang, the share of refrigerators above 10,000 yuan reached 38%; the share of drum washing machines above 10,000 yuan reached 78%; and the share of air conditioners above 15,000 yuan reached 34%.

As one of the few full-category players in the white goods brand, Haier Zhijia's transformation to a full scene and full ecology can be said to be a matter of course. Throughout the industry, Haier Zhijia is the only one that can provide users with smart home solutions. There is also a brand that provides full-cycle services around the customization of clothing, food, housing and transportation.

In this regard, compared with other brands that are still building user minds around single products, Haier Zhijia’s strategy has a generational advantage.

On this basis, unlike other brands' behind-the-scenes reforms, Haier Zhijia is still constantly relying on the "cost", "manufacturing" and other links to open up, sideways to help reforms.

It is understood that in the domestic and foreign markets, Haier Zhijia has gradually realized the upgrade of its business model from offline to online through the digital marketing and terminal information construction of six online platforms, and continued to optimize under the effective control of disposable expenses. Overall expense ratio.

The quarterly report shows that the overall rate of Haier Smart Home has continued the trend of rate optimization in the second half of 20 years, and has been optimized by 1.33 percentage points year-on-year, of which the sales expense rate is 14.3%, and the year-on-year optimization is 0.7%; the management expense rate is 3 .9%, 0.6% year-on-year optimization, further reflecting the results of cost reduction and efficiency improvement.

Relying on this "1+1+1>3" chemical reaction, Haier Zhijia was able to continuously release the results of transformation and boost revenue growth while running at high speed.

Ecological overweight, how does Haier Zhijia "seventy-two changes"?

On this basis, if "product" and "efficiency" are the sharp blades of Haier Zhijia in the past, then Haier Zhijia's continuous "breaking circle" layout in the scene ecology is a powerful force for leveraging the new growth curve in the future. arms.

In the era of the Internet of Things, the concept of "ecology" has been repeatedly mentioned because of its ability to continuously adapt to the environment and complete autonomous evolution, autonomous growth, self-repair and self-purification.

This point also appears to be particularly critical for the white electricity industry in the transitional wave.

As a heavy asset manufacturing industry in the traditional sense, the white power industry has been struggling in an environment where the overall manufacturing industry is "demanding from rigidity to flexibility". Even for companies like Haier Zhijia, it takes a certain amount of time for the elephant to turn around. In the ever-changing market environment, apart from adaptability, nothing is a sustainable moat for an enterprise.

This is also the original intention of Haier Zhijia to build the scene brand "Triwing Bird" at all costs.

In September 2020, Haier Zhijia released the world's first scene brand Triwing Bird. At the same time, Triwing Bird Haier Zhijia Experience Center 001 began to land globally.

At the 2021 AWE exhibition, the crowded exhibition area also witnessed the pattern and vitality of the three-winged bird scene brand.

Looking forward to the incubation and take-off of Triwing Bird, what this brand symbolizes is not a superficial change of product portfolio and brand collaboration, but the subversion and innovation of the business model.

As for the capital market, Triwing Bird can not only greatly improve the channel efficiency of Haier Smart Home, enhance its single-passenger operation capability, but also bring more powerful income-generating capabilities.

This point has been reflected in the first quarter financial report released this time. The three-winged bird scene experience store relies on a set of display and sales, pre-sales design, in-sale immersive experience, and one-stop after-sales maintenance service. Differentiated competitiveness to achieve the improvement of customer acquisition efficiency and value.

Not only that, in terms of ecological brands, Haier Zhijia is also actively promoting the construction of the Internet of Food and the Internet of Clothing.

For example, Haier Food Network provides a whole-process healthy eating experience based on intelligent hardware platform and gourmet ecological alliance resources, through Internet of Things technology, culinary art & dish standardization, and digitization of cooking procedures. Set, 120,000 dishes.

From this perspective, the advantage of Haier Zhijia is not only in the growth of numbers in the financial report, but in addition to the financial report. With the active organization and dynamic adaptability built by Triwing Bird and the Internet of Food and Clothing, the two have given today The possibility of "seventy-two changes" in Haier Zhijia.

All of this not only allowed Haier Zhijia to break through the ceiling of revenue growth, but also realized the empowerment of industry enterprises and opened up a new imagination for the entire industry.

This may be why, including Zheshang Securities, a number of research institutions and investors believe that this brand deserves a higher valuation and more market attention.

The sea is wide and the sky is high, and the sky is high. The numbers in a financial report are not enough to explain the infinite space of the future of this company. The future of other white appliance brands is destined to be visible, and the future of Haier Zhijia is bound to be Will bring us more imagination and surprises.