On March 30, Boss Appliances 2022 China New Kitchen Technology New Product Conference was released, and a new generation of high-performance integrated stoves of Boss Appliances was released. Boss Appliances officially entered the integrated stove category, which also means that the integrated stove track has added another heavyweight kitchen appliance leader player.
Picture from boss electrical appliances 2022 science and technology new product conference "Ladder Chapter"
According to public data, the retail sales of the mainland integrated stove market increased from 6.08 billion yuan in 2016 to 18.22 billion yuan in 2020, with an average annual compound growth rate of 31.6%. In 2021, the total data of Aowei Cloud Network (AVC) shows that the retail sales of integrated stoves increased by 41% year-on-year. Such rapid growth has made it a high-profile subdivision category, and the head integrated stove enterprise has successively IPO landed on the capital market.
Why did Boss Appliances choose to enter the field of integrated stoves at the current time? What is the space and potential growth points for the industry to be optimized? What new atmosphere will the high-performance integrated stove launched by Boss Electrical Appliances bring to the industry? He Yadong, senior vice president of Boss Appliances, interpreted the underlying logic behind Boss Appliances' entry into the integrated stove category.
"Fast" growth category of "slow" play
Aowei Cloud Network (AVC) push total data show that in 2021, the integrated stove market size is 3.04 million units, 25.6 billion yuan, retail sales increased by 28% year-on-year, retail sales increased by 41% year-on-year, the growth momentum is strong.
Guosen Securities Research Report analysis believes that the increase in the penetration rate of integrated stove is an irreversible strong logic, since 2015, the integrated stove industry has achieved an increase in penetration rate of 0.5-2 percentage points for 7 consecutive years, but even now, the industry penetration rate has just reached about 12%-15%, whether it is the continuity of the trend or the upward space is more certain.
The high growth of the integrated stove has also attracted many competitors to enter the game. According to Zhongyikang data, the number of integrated stove brands expanded from 83 in 2015 to 262 in 2020, showing rapid growth and fierce competition.
Based on this, guosen securities analysts believe that it is precisely because of the good industry and high prosperity that it will attract new entrants. The entry of the head enterprise will first bring about the market education of the category, which is positive for the improvement of penetration rate and the expansion of the industry. For the changes in the industry's competitive landscape, analysts expect that this year and next two years will gradually begin to precipitate, and the excellent excess returns of enterprises will lead themselves to achieve faster growth than the industry.
Why did Boss Appliances choose to enter the integrated stove at the current time?
He Yadong, senior vice president of Boss Electrical Appliances, said that from the user's point of view, the market segment of integrated stoves has basically been formed. The annual user growth of the integrated stove is stable, and a large part of the users are still young consumers. The current development of integrated stoves, its products are actually a combination of open flame cooking and fume treatment, however, young user groups still have a relatively wide range of electric cooking needs, such as steaming and other functions integrated, this part of the market has just emerged in recent years, there is still a large potential space. He Yadong believes that only when more enterprises participate in and compete for the likes of users through competition, the products of the market segment will get better and better, and the emerging markets can develop in a healthy and orderly manner.
From the perspective of enterprises, enterprises have just started in the research and development of electric cooking and steaming and grilling machines, and the requirements for the research and development of enterprises are very high. In this regard, the boss electrical appliances as early as 2016 to capture this market, and last year after the steaming and grilling machine won the first place in the industry, the dishwasher won the second place in the industry, this year focused on the launch of integrated stove products, which is based on its own strategy, orderly layout; He Yadong stressed that if the company does not have technological innovation, it chooses to enter the market directly, which is irresponsible to users and a manifestation of utilitarianism. After 43 years of development, boss electrical appliances have accumulated many years of technological innovation capabilities, based on the research and development breakthroughs in the field of integrated stoves, at this time, it is the most suitable time to officially enter the integrated stove.
Insight into changes in culinary needs
Layout is integrated and digital
The capital market also showed a positive reaction to the boss's electrical appliances entering the integrated stove. Wind data shows that from March 30 to April 1 for three consecutive trading days, the stock price of Boss Electrical Appliances rose upwards, and as of the close of Trading on April 1, Boss Electrical Appliances closed at 30.50 yuan / share.
In fact, the integrated stove market has experienced rapid development and fierce competition in previous years, and the concentration of the market is further concentrated to leading enterprises.
According to the monthly brief analysis report of the integrated stove in February 2022, the integrated stove market grew significantly from January to February 2022. Among them, in the online market, the concentration of the top five brands exceeds 60%.
When the market concentration is increasingly concentrated to the head brand, does the boss electrical appliance enter the integrated stove industry at this time, does it have an advantage?
From the perspective of the current situation of the integrated stove market, there is still more room for optimization of the current integrated stove products, such as the industrial design of the product, the improvement of technical indicators, etc., secondly, from the perspective of the industry's service, the integrated stove has relatively high service requirements for the enterprise, and more enterprises need to participate, especially the enterprises with a strong management platform, thus promoting the healthy development of the industry.
At present, the existing channel network layout of Boss Electrical Appliances has nearly 10,000 stores and nearly 30,000 sales and service personnel, which has strong organizational advantages and can achieve better coverage in user communication.
In addition, the brand equity of Boss Appliances is another major advantage of its integrated stove. Boss Electrical Appliances has been deeply engaged in the kitchen appliance market for 43 years and has built high-end and professional brand equity, which will also give brand power to the new categories of Boss Electrical Appliances.
He Yadong mentioned that in the past two years, boss electrical appliances have a loud language of communication with users, called "China's new kitchen", and the "new" of which also coincides with the development trend of the kitchen appliance industry in recent years: high-end, localization, integration, and digitalization.
Grasp these trend changes, especially important for the kitchen appliance industry, on the one hand, in the context of consumption upgrading, users have higher quality requirements for kitchen appliances, and the demand is more diversified and personalized; on the other hand, the impact of factors such as the epidemic has exacerbated the rise in raw materials, labor and other costs, in this context, deep insight into and understanding of the characteristics of Chinese cooking, and both brand power, innovation, premium ability of enterprises will have more development resilience.
In a series of trend changes, the grasp of changes in culinary demand has become a compulsory course for Chinese kitchen appliance companies. Human cooking technology in the tens of millions of years of iterative flow of continuous changes, He Yadong divided the history of human cooking demand changes into 3 stages: the first stage is the birth of cooking utensils, the emergence of cooking utensils to facilitate food burning; the second stage is to reduce the cooking work, that is, how to improve the efficiency and convenience of cooking, such as gas stoves and hoods to replace firewood, electricity to replace open flames, etc., are to help cooking, reduce the burden of the historic change; the third stage is to reduce the threshold of cooking, At this stage, a large number of integrated, digital and intelligent cooking equipment has emerged, and their birth has further enhanced the cooking experience and stimulated culinary creativity. It can be said that the requirements for science and technology in the third stage represented by digital cooking are extremely high, and this also constitutes the underlying logic of the boss's electrical technology innovation, reaching the "one-shot" between the supply side and the demand side.
Decoupling real estate
Seize the definitive opportunities for enterprise development
Nowadays, the market value of Boss Electrical Appliances is nearly 30 billion, and the layout of new categories may open up new incremental space for Boss Electrical Appliances. In the past, the kitchen appliance market and the real estate market had a strong correlation, and the real estate market was sluggish in 2021, but at the same time ushered in the game of the real estate stock market, in He Yadong's view, the certainty factors for the development of kitchen appliance companies have been enhanced.
Although the downturn in the real estate market has brought pressure and challenges to the kitchen appliance industry, it has also brought opportunities. For kitchen appliance companies, whether they can seize the opportunities in the crisis is a more challenging thing.
In the past, the development of the kitchen appliance industry depended largely on real estate policies, but now that the stock market has been determined, the development of enterprises must rely on their own strength. Secondly, from the user's point of view, the consumption upgrade has begun, and the new technological achievements carried by the emerging categories have improved the efficiency of user cooking, which will bring about the release of a number of upgraded market demand.
From the perspective of the market of user services, the demand for services between existing users and incremental users is not the same. The replacement of existing users' products has put forward higher demand for user services, and more attention has been paid to the service capabilities of kitchen appliance enterprises. From the perspective of user communication, the user communication in the incremental market is basically new, the consumer group is single, the communication process is relatively simple, and the stock market, most of the users are reloaded, dressed, the demand for various consumption scenarios is different, the user's communication complexity increases, so how to improve the efficiency in the stock market, behind which it is more necessary to test the wisdom of the enterprise.
In fact, from the new white in the incremental market to the users in the dress-up market, everyone's awareness of the brand is different. Consumers in the stock market often have more understanding of the brand, so the importance of brand building at this stage is highlighted, and positioning high-end, professional national well-known brands can deepen the mental memory of consumers and reduce the cognitive threshold. This also means that the value of head brands like Boss Appliances may once again be strengthened and confirmed in the stock market. From the perspective of competition, it is also more conducive to high-end, mature management of national brands.
The reshuffle of the stock market industry has intensified, and it is easier to establish industry barriers. Of course, this also reverses the promotion of boss electrical appliances to improve their own management level, and the company has a more urgent sense of urgency.
Can the boss electrical appliances that are slow and fast through the cycle, harvest the deterministic growth of the kitchen appliance market, and strengthen the value center of the head brand? Perhaps, the wind and things should be looked at for a long time.
(The content of this article is for informational purposes only and does not constitute any investment advice.) Investors operate accordingly at their own risk. ）