It has been nearly a century since the advent of household appliances. From 1879, T.A. Edison invented incandescent lamp in the United States, creating the era of household electricity. Since then, the household appliance industry has evolved a rise and fall history worthy of investigation. So far, home appliances is an industry with a trillion market scale and a track that capital has coveted for a long time to expand and subvert.

The whole household appliance industry can be subdivided into black electricity, white electricity and small household appliances. Among them, the consumer market and channel end market of black-and-white household appliances and other large household appliances are constantly changing. The competition between enterprises at the channel end is becoming increasingly fierce, and the competition between brands is also continuing. Various contradictions form a competition pattern of the whole value chain. Entrepreneurs turn their attention to the stock market of small household appliances.

Under the increasing competitive pressure of the industry, it further gave birth to the rise of the small household appliance industry. According to the data, the market scale of small household appliances will be 401.5 billion yuan in 2019, and it is predicted that the market scale will reach 646 billion yuan in 2023. In the first half of this year, the omni channel retail volume of small household appliances was about 130 million units, a year-on-year increase of 6.5%; However, the online channel was brilliant. The retail volume increased by 25.4% year-on-year, and the retail volume also increased by 12.4% year-on-year.

Before that, there were net red yoghurt machines, portable juicing cups, bread machines, noodle machines, health pots, mini kebab machines and multi-functional cooking pans, followed by tea bar machines, desktop water purifiers, sandwich machines, food dryers, steak machines, electric milk beaters, tableware disinfection machines and other categories springing up. In 2020, small household electrical appliance enterprises developed in a blowout manner. From March to April, the registration of small household appliances in China reached 10722, while the total registration from January to February was only 3233.

What's behind the popularity?

The reason why small household appliances can develop so rapidly and vigorously is inseparable from product characteristics and flow dividends.

After ZDC market research, consumers now have many individual needs and have certain requirements for fashion, convenience and beauty. The survey also found that consumers have an equally strong pursuit of small and beautiful species. In addition to meeting their daily basic needs, they also have a certain choice of price. This shows that no matter how the society develops, consumers will be more persistent about low prices.

As consumers, the small household electrical appliances purchased are used to meet daily needs and solve some pain points.

First, the product covers a wide range. Nowadays, the category of small household appliances covers a wide range, and now the range of personal protection from hair and beard to skin, mouth and nose has become wider and wider, extending the demand for diversified scene applications and more contacts with consumers.

Second, cater to the consumption characteristics of users. Small household electrical appliances introduce the concept of a better life and focus more on "discovering" and "transmitting" beauty, so as to return business development to its original intention and promote the sustainable development of consumer enterprises. For consumers, the sense of quality of this product makes the middle class focusing on a better life more and more active in the market.

Third, price advantage. High gross profit margin is one of the important reasons for the strong profitability of small household appliances, and explains the price advantage of small household appliances. Compared with the 20000 or 30000 yuan of household electricity, low prices have a fatal temptation to consumers.

Market dividend of small household appliances

In fact, the good performance of small household appliance brands in the first half of the year is largely due to the epidemic. In 2020, almost no industry can bypass the "live broadcast e-commerce", and small household appliances are no exception. Its internal driving force is also inseparable from the interactive new marketing system led by live broadcast.

For the home appliance market, small home appliances will integrate online and offline, and explore a new marketing model of community + live broadcasting. Community or community is a very hot model recently. E-commerce platforms and brands are trying to portrait users by finding their own accurate user data, but household appliances have their particularity.

In a family, FMCG may be needed by both men and women, aiming at people. Small household appliances are aimed at the whole family, taking the family, or kitchen, bathroom and other scenes as the unit, so the audience of small household appliances in the community is broader.

Obviously, small household appliances are more competitive in online channels with their advantages of exquisite and small size and low price. Many enterprises have created new o2o and launched their own community interaction platform as the terminal channel. They can place orders directly through their own platform, which solves the problems of excessive capital occupation and improves the timeliness of logistics distribution.

Although many brands are now implementing this model, which is very key to the improvement of terminal efficiency, this marketing model of small household appliances is more popular. In micro-blog, Kwai hung, jitter, tiktok and other social platforms, KOL is more likely to affect the concrete crowd precisely. Leveraging the power of consumers to help products continue to spread autonomously and grow more consumers.

How far can small household appliances go?

In the "2020 small household appliance market forecast report" released by ovicloud, it is said that in 2019, the online price war of small household appliances will become white hot. Although the sales volume has increased significantly, the sales volume has increased slightly. In 2020, with the decline of prices and the gradual saturation of the first and second tier markets, the sinking of the third and fourth tier cities through online channels will become the general trend of the small household appliance market.

Some traditional market segments in the field of small household appliances, such as soybean milk machine, juicer, induction cooker and so on, have limited growth power and a declining trend. This means that in the small household appliance market, there have been signs of transition between traditional category and emerging category markets.

Facing the warning of "fever abatement", small household appliances should explore new growth opportunities, and this good opportunity may be at hand - sinking the market.

According to the official statistics of Suning, the sales of electric toothbrushes, dishwashers and floor sweeping robots in the county and town markets in 2018 increased by 35.1%, 496.8% and 313% respectively in the second half of the year compared with the first half of the year; In the sinking market, the sales of Dyson series products in the second half of the year increased by 152.32% compared with the first half of the year. It can be seen that only the sinking market is the next blue ocean of small household appliances.

The home appliance industry has experienced the previous period of rapid growth, with high product penetration and saturated market demand. It can be said that it has fully entered the stock era. Young people's home appliance consumption pursues fashionable appearance, diverse functions and high-end brands. Elderly home appliances are more rational and practical, and pay more attention to the health attributes of products. Since this year, consumers' health awareness has been significantly improved, and the concept of product health has been raised to an unprecedented level. Household appliance enterprises should seize the opportunity of "health attributes" and speed up the promotion of new product concepts.