With pictures from Canva drawable
Recently, small home appliance giants Supor and Joyoung have successively released their 2020 financial reports. Supor's revenue and net profit have both fallen, and Joyoung's revenue and net profit have both risen in a bipolar state, which has aroused heated discussions.
Financial report data shows that Joyoung's 2020 operating income is 11.224 billion yuan, an increase of 20.0% year-on-year; net profit is 940 million yuan, an increase of 14.07% year-on-year; Supor's 2020 operating income is 18.597 billion yuan, A year-on-year decrease of 6.33%; net profit of 1.846 billion yuan, a year-on-year decrease of 3.84%.
It is intriguing that this is the first time that Supor's operating income and net profit have both fallen after eight years of firmness. Financial report data shows that from 2013 to 2019, Supor's revenue increased by 21.68%, 13.73%, 14.42%, 9.51%, 18.75%, 25.83% and 11.22% respectively. ; Net profit increased by 24.49%, 19.35%, 28.96%, 14.96%, 15.33%, 27.6% and 14.79% respectively year-on-year.
For the same traditional small home appliance companies, the obvious gap between "Jiuyang Sheng and Supor Jiang" makes people wonder whether the traditional small home appliance giant Supor has fallen behind.
Left behind
As we all know, Supor is China's largest cookware research and development manufacturer, and is also the first listed company in the cookware industry. It has old qualifications, good reputation, rich products, high market value, and its comprehensive strength is self-evident. However, in 2020, both revenue and net profit fell, breaking the Supor myth, and doubts followed.
Financial report data shows that, except for rubber and plastics, the revenue of Supor's three main businesses increased compared with the same period in 2019, while electrical appliances and cooking utensils decreased. The revenue of electrical appliances was 12.915 billion yuan, a year-on-year decrease of 4.51%, accounting for 69.44%; the revenue of cooking utensils and rubber and plastics were 5.506 billion yuan and 25.26 million yuan, a year-on-year decrease of 10.2 million yuan. 31% and an increase of 40.44%.
In this regard, Supor said: ``Due to the special reasons of the epidemic in 2020, the proportion of the domestic online and offline markets has changed greatly, and the offline market is still sluggish after entering the third quarter, which will have a greater impact on Supor's offline sales in 2020. Influence."
The impact of the epidemic on Supor is huge. From the revenue data, it can be found that Supor's revenue is almost changing with the trend of the epidemic. Supor suffered heavy losses in the first quarter of 2020, and the amount of losses gradually narrowed in the fourth quarter, showing a process of recovery.
In terms of specific financial report data, Supor's 2020 mid-year report, 2020 third quarter report, and 2020 annual report revenues were 8.187 billion, 13.305 billion, and 18.597 billion; net profits were 666 million and 10.81, respectively. The year-on-year growth rate was -20.48%, -13.42%, and -3.84%, respectively.
The reason is that Supor's offline channel layout is relatively large, and the epidemic cut off most of its offline income; second, the rise of various Internet celebrity small electrical appliances brands has seized Supor's market share.
Since its establishment, Supor has relied on offline channels for a long time, and offline sales will inevitably affect its performance. As early as 2004, Supor established a total of more than 100 first-level distributors in 15 regions and 40 offices in 31 provinces and cities across the country, and initially established a nationwide offline sales channel system. In recent years, Supor has opened 670 Supor life halls. Life halls and suburban stores contribute about a quarter of domestic sales.
From the perspective of market competition, Xiaoxiong Electric, Xinbao shares and other small household appliances brands have introduced convenient, compact, high-value, and cost-effective small kitchen appliances, while Supor mainly produces traditional cooking utensils and small kitchen appliances. In contrast, the Internet celebrity small appliances are more in line with the new generation of young people's pursuit of Internet celebrity products, which means that the Supor brand has an aging trend.
All in all, an epidemic has exposed many shortcomings of Supor's product innovation and uneven distribution of channels. In addition, the new small home appliance brands are violently attacking, and Supor has clearly fallen behind.
Wind direction changed
With the development of the times, the needs of mainstream consumer groups such as post-95s and post-00s continue to escalate, and higher product and service requirements are put forward to small home appliance manufacturers.
The new consumer groups are keen to buy goods online and like to try new channels. At present, the new consumer groups have gradually diverted from Taobao, the main online shopping battlefield, to platforms such as Xiaohongshu, Douyin, and Kuaishou. This requires that small home appliance companies have online and offline sales channels, and make changes in product innovation and category expansion to meet the individual needs of consumers.
Faced with new market demands, Joyoung has obviously done better than Supor in terms of product innovation and channel expansion. This is also the fundamental reason why Joyoung’s revenue and net profit will rise and Supor will drop in 2020.
Financial report data shows that Joyoung's Western-style electrical products have achieved good growth, with revenue increasing by 3.286% year-on-year to 1.532 billion yuan, accounting for 13.65%. The revenue of food processing machines and nutrition pot products ranked the top two, achieving 4.755 billion yuan and 3.479 billion yuan, an increase of 16.07% and 12.06% year-on-year.
In terms of cost, Joyoung continued to increase its R&D investment. In 2020, it invested a total of 346 million yuan, a slight increase of 4.68% year-on-year, accounting for 3.08%. As of the end of the reporting period, Joyoung has a total of 8,378 patented technologies. Item; In addition, Joyoung has increased its marketing and promotion efforts. In 2020, sales expenses will reach 1.868 billion yuan, an increase of 391 million yuan year-on-year, an increase of more than 26%.
It can be said that the growth of Joyoung 2020 is inseparable from the development of online channels and the huge traffic dividend brought by live short videos during the epidemic period.
In recent years, Joyoung has been actively transforming into a younger brand. During the epidemic, it launched popular themes such as "Home Immunity Challenge" and "Deng Lun’s Cute Kitchen". Topics have been viewed hundreds of millions of times and actively participated in live broadcasts. Build a complete live streaming delivery system, cooperate with Internet celebrities and celebrities, and seize the live streaming e-commerce dividend.
Not only that, Joyoung also strives for diversified development. First, continue to build high-end brand stores, actively deploy and expand offline new retail channels; second, cooperate with Huawei to launch a new generation of soymilk without hand washing, and promote product intelligence and enterprise digital transformation; third, enter a stake in Lexiu Technology In the field of personal care, broaden product fundamentals.
Obviously, Joyoung's strategy of rejuvenation has achieved certain results, but Supor has failed to meet the needs of new users and new markets, and is facing serious brand aging problems. Even if Supor has a huge domestic market, as the core consumer groups slowly disperse, brand performance will inevitably slow down and be overtaken by rivals.
No matter when and where, brands should take user needs as the core, actively expand product categories, and be guided by technological innovation, strengthen digital operation capabilities, in order to achieve sustainable development.
The opponent is stronger
In addition to the problem of brand aging, Supor is also facing competitive pressure from Internet celebrity brands.
Taking advantage of the small home appliance bonus, new small home appliances such as Xinbao and Xiaoxiong Electric quickly seized the market. Moreover, from the perspective of growth rate, the new small home grid red brands such as Xinbao and Xiaoxiong Electric are faster than traditional small home appliance companies such as Supor and Joyoung.
The financial report data shows that Xinbao's operating income in 2020 is 13.18 billion yuan, an increase of 44.44%; the net profit attributable to the parent is 1.116 billion yuan, an increase of 62.39% year-on-year, and the foreign sales revenue increased by nearly 40% year-on-year. %, domestic sales revenue increased by about 65% year-on-year; Xiaoxiong Electric's 2020 annual performance forecast shows that the net profit attributable to shareholders of listed companies in 2020 is expected to be 402 million yuan to 456 million yuan, an increase of 50% over the same period last year. %-70%, basic earnings per share is 2.57 yuan-2.92 yuan.
In addition, Xinbao has increased its own brand building, and its product profitability has been continuously enhanced. It is reported that Xinbao already owns 6 brands: Donlim, MorphyRichards, Gevilan, Barsetto, Laica, and Mingzhan, and the performance of major brands has maintained steady growth. .
Xiaoxiong Electrical Appliances attracts a large number of consumers in the Z era by virtue of its high appearance, high cost performance and cute attributes, and is deeply favored by capital. It is reported that at the beginning of 2020, the share price of Xiaoxiong Electric rose from 39.86 yuan/share to 165.9 yuan/share in July 2020, an increase of more than three times, and the market value soared from more than 6 billion yuan to 25.3 billion yuan.
For small home appliance brands such as Xiaoxiong Electric and Xinbao, the Internet celebrity label is a symbol of popularity, indicating that they have captured the preferences of young people. At the same time, Internet celebrity brands are proficient in short videos, live broadcasts, content platforms and other social platforms that efficiently reach consumers. The exposure and "grassness" of marketing products are high, while the popularity and channels are lacking in Supor.
All in all, as a veteran in the home appliance market, technology and market scale are Supor's "shields", but the times are advancing and user needs are changing. Only by comprehensively improving R&D capabilities, technological innovation capabilities, channels, and brands can Supor stimulate new momentum. .