The performance of home appliance enterprises reached a new high
author：China Electronic News
The performance of home appliance enterprises reached a new high
Recently, home appliance companies have shown their report cards for the first quarter of 2023 and 2024. Midea Group, Haier Smart Home, Gree Electric Appliances, Hisense Home Appliances and other leading enterprises have achieved revenue and profit growth, and profits have achieved double-digit growth. On the whole, the overall scale of the United States is leading, Haier, Gree's profit growth is more prominent, and the revenue growth rate of Hisense household appliances is leading.
The performance of home appliance enterprises reached a new high
Haier X11 series washing machine products
2024 is the "Year of Consumption Promotion", and the consumption policy of household appliances has pushed up market expectations. Industry insiders believe that home appliance companies are chasing the trend of "replacing the new" and carrying out high-quality layout in overseas markets, which is expected to achieve better results in the new growth cycle.
Profit increased significantly in the first quarter
In 2023, the mainland's home appliance industry has achieved good development. The revenue and profit of major home appliance enterprises have achieved varying degrees of growth. In the first quarter of 2024, the mainland home appliance market continued the good trend in 2023 and achieved unexpected development under the slow growth cycle. According to data from Aowei Cloud Network, in the first quarter of 2024, the retail sales of the mainland home appliance market will be 179.9 billion yuan, a year-on-year increase of 6.8%.
The performance of home appliance enterprises reached a new high
The performance of leading enterprises reached a new high, with both revenue and profit increasing. According to the financial reports of various enterprises, Midea Group achieved operating income of 106.5 billion yuan, a year-on-year increase of 10%, and net profit increased by 12% year-on-year; Haier Smart Home achieved revenue of 68.978 billion yuan, a year-on-year increase of 6.01%, and net profit increased by 20.16% year-on-year; Gree Electric achieved revenue of 36.364 billion yuan, a year-on-year increase of 2.56%, and net profit increased by 13.77% year-on-year; Hisense home appliances achieved operating income of 23.486 billion yuan, a year-on-year increase of 20.87%, and net profit increased by 59.48% year-on-year.
Taking the air conditioning category as an example, the market growth rate will reach 21% in 2023, and the channel stocking sentiment will be high since the beginning of 2024, and the production scheduling and shipment data will perform well. According to industry online data, in the first quarter of 2024, the overall domestic shipments of air conditioners increased by 17% year-on-year. Among them, Haier's air conditioning revenue increased by more than 10%, Gree air conditioner's domestic sales and production increased by 14.36% year-on-year, and Hisense's domestic air conditioning shipments increased by 30.2% year-on-year, outperforming the industry. The refrigerator category also showed a similar trend, with data from Aowei Cloud Network showing that the omni-channel retail sales of the refrigerator market in the first quarter of 2024 were 29.4 billion yuan, a year-on-year increase of 9.2%.
The reporter learned from the financial report of Haier Smart Home that in the first quarter of this year, its domestic market revenue increased by 8.1% year-on-year, of which the revenue growth rate of household air conditioning, aquatic industry, kitchen appliances, smart buildings and other revenues exceeded 10%, and the revenue of Casarte brand increased by 14% in the first quarter. Benefiting from the deepening of digital transformation, Haier's operational efficiency has been continuously improved, and its operating profit in the Chinese market has increased by more than 30% year-on-year.
Midea Group's smart home business revenue increased by 11% year-on-year, and gross profit margin increased by more than 3 percentage points year-on-year. In addition to the impact of factors such as raw materials and cost reduction, the increase in gross profit margin is also related to the continuous optimization of product structure.
Zhao Meimei, assistant president of Aowei Cloud Network and deputy general manager of the overseas business department, told reporters that there are many reasons for the growth of home appliance enterprises, on the one hand, economic growth, consumption recovery, and the pull of high-end, scenario-based, intelligent and other trends in the domestic market, on the other hand, the improvement of business efficiency and product structure optimization have played a key role in promoting.
The reporter of "China Electronics News" learned in an interview that although the revenue of household appliance enterprises in the first quarter was better, in the long run, the overall demand for household appliances is in the process of recovery. The profit growth in the first quarter was larger, but the marketing expenses of some companies continued to rise, and the high-end brand operation relied heavily on marketing, and the relationship between the above two needs to be balanced in the future.
High-quality layout in overseas markets
Under the influence of factors such as the recovery of overseas demand, the decline of overseas inventory, the reduction of shipping prices and the low revenue base of overseas markets in the same period, the overseas market demand for household appliances will improve significantly in 2023. In the first quarter of this year, mainland home appliance exports continued the high prosperity in 2023. According to data from the General Administration of Customs, in the first quarter of 2024, the export value of household appliances in mainland China reached 161.49 billion yuan, a year-on-year increase of 8.58%.
Zhou Nan, secretary general of the Household Appliances Branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, pointed out in an interview with a reporter from China Electronics News that in the first quarter of this year, air conditioners, refrigerators and washing machines ranked among the top categories of household appliances exported by the mainland, reaching US$4.38 billion, US$1.74 billion and US$950 million respectively, a year-on-year increase of 8.09%, 27.2% and 21.46% respectively. In terms of export countries of white power products, the United States, Japan, and Russia are among the top exporters.
The performance of home appliance enterprises reached a new high
According to the company's financial report, Haier Smart Home's overseas revenue increased by 4% in the first quarter of 2024, and its operating profit increased by more than double digits. In the North American market, its market share of all core appliances increased; The market share in Europe has been steadily increasing, and according to GfK data, Haier Smart Home's sales share in the European market reached 9.0% from January to February 2024.
In the first quarter of this year, the overseas e-commerce retail sales of Midea Group's smart home business increased by about 60% year-on-year. Private label sales in Brazil, Egypt, Malaysia and the Middle East increased by more than 50% year-on-year, while Midea invested 3 billion yuan to accelerate the development of overseas private label business.
In 2023, Gree Electric's overseas business will achieve operating income of 24.904 billion yuan, with independent brands accounting for nearly 70%, an increase of 8% year-on-year.
The performance of home appliance enterprises reached a new high
However, since the beginning of this year, major home appliance markets in Europe and the United States have also faced a trend of declining demand. According to GfK Zhongyikang data, due to the impact of high interest rates and inflation, consumer confidence in the European market is low, while the Japanese market is also affected by inflation, currency depreciation and other factors, and the growth of the white goods industry is weak. Although South Asia, Southeast Asia and other places have a relatively broad space for development, but the demand for low-end products is large, and the growth of medium and high-end products is slow. In addition, home appliance companies are facing risks such as the construction of overseas self-owned brands that are not as expected.
Wave of household appliances "replacement"
In April, the Ministry of Commerce and 14 other departments jointly issued the "Action Plan for Promoting the Trade-in of Consumer Goods" to promote the trade-in of consumer goods. Nowadays, home appliance companies are doing their best to catch up with the wave of "replacement" of household appliances.
Haier Smart Home promotes the "Green Carbon Plan" across the country, and Haier's 238 and Casarte's 136 green products provide users with a wide range of product choices. Midea Group announced that it will invest 8 billion yuan to promote trade-in activities for all brands and categories. Gree Electric announced that it would invest 3 billion yuan to start the trade-in activities for home appliances.
The performance of home appliance enterprises reached a new high
Gree Electric Appliances launched the announcement of the trade-in activity of home appliances
Now the era of home appliance replacement has arrived. "The overall ownership of China's home appliance market is about 6.9 billion units, and the number of major appliances is about 2.5 billion units. Wang Hongji, general manager of GfK Zhongyikang White Appliance Division, told reporters.
The reporter learned through interviews that the main demand power of the household appliance industry in the future will come from the user's trade-in and trade-in, as well as the demand for new and partial modification of some families. In the first quarter of 2024, the demand for home appliances was relatively stable, and consumers had high expectations for policy subsidies such as trade-in.
In Wang Hongji's view, most of the core categories of China's home appliance market will maintain stable growth in 2024, and the annual retail sales are expected to be 869.9 billion yuan. In particular, emerging home appliances with low penetration rates such as dryers, built-in all-in-one machines, and dishwashers will lead the home appliance market in terms of retail sales scale and growth rate.
However, industry insiders also pointed out that in order to effectively activate the stock market of household appliances, the "trade-in" policy also requires the joint efforts of the government, enterprises and consumers, and the government needs to continuously improve relevant policies to guide and support the development of the household appliance recycling industry; Enterprises need to continuously improve technological innovation and product quality to win the trust and support of consumers; At the same time, consumers need to enhance their environmental awareness and actively participate in home appliance recycling and "trade-in" activities.
Pei Dongmin, deputy general manager of the major appliance division of Aowei Cloud Network, told reporters that for enterprises, in order to make full use of the trade-in policy and expand sales, they need to start from two aspects. Enterprises need to formulate corresponding measures or launch suitable products to form a perfect match with the distribution channels; At present, consumers generally have the psychology of "not bad and not replaced", enterprises need to guide consumers in the retail link, cooperate with the measures and products of the circulation side, promote consumers to update the home appliances that are overdue for service, and feed the entire consumer market by innovating the consumption concept.
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