Breakout And Upgrading Of Leading Kitchen And Electric Enterprises In Ten Years Of Residential Decoration

China's new home sales market hit a new high in 2019, reaching 16 trillion. Residential fine decoration has also been developing rapidly, and this year it is expected to reach more than 300 sets of scale.

Real Estate Company therefore resonates with refined decoration suppliers. In the field of kitchen electricity, brand enterprises have taken up 70% of the share, and the high-end brands such as bosses and FOTILE have firmly grasped the market initiative.

The hardcover room can effectively reduce dust pollution and construction waste, developers can also share premium with consumers through scale purchase, and the brand kitchen electricity supplier has also expanded rapidly due to the development of the TO B business.

Boss electrical appliances is one of the earliest batch of private enterprises after the reform and opening up. This year is the 40th anniversary and the earliest layout of the kitchen and electric enterprises with fine decoration. So far, it has been 11 years.

In December 28, 2019, He Yadong, vice president of the boss electrical appliances, told reporters in an interview with twenty-first Century economic report that enterprises should go through the long term development of the economic cycle. The choice and concentration of the track is very important.

With the passing of the real estate golden age, suppliers are also feeling the hot and cold market with developers. Housing is more likely to be imagined and upgraded today when housing returns to residential properties. Boss electrical appliances do not want to be just suppliers, but also want to explore real estate development, design, marketing and other links.

Counter trend growth

Under the influence of real estate downlink cycle and regulatory policies, most kitchen and electric enterprises share similar chills with developers. According to China Yikang data, the retail sales of lampblack machines, gas cooker and disinfector in the first three quarters of 2019 were in the doldrums, decreasing by -4.04%, -2.76% and -13.16% respectively.

As the domestic kitchen leader, the boss electric appliance has gone against the trend. According to the 2019 earnings report, boss electric achieved 2 billion 98 million yuan in the third quarter, up 10.56% over the same period last year, net profit 415 million yuan, an increase of 18.20% over the previous year, and 5 billion 625 million yuan in the first three quarters, an increase of 4.29% over the same period last year; net profit of 1 billion 86 million yuan, an increase of 7.31% over the previous year.

This is inseparable from its deep ploughing at the B end, namely the engineering channel.

Turning to the strategy of making B terminal 11 years ago, He Yadong believed that first of all, to be a big client, the first choice is Vanke, Hengda and Biguiyuan, and then divided the developers into several types, such as regulatory model, quality type and technology type. "Do the scale first, quickly increase the quantity, then hit the quality head, then do some technology companies."

He Yadong pointed out that compared with other kitchen power suppliers, boss appliances can ensure the timeliness of supply and installation, which depends to a large extent on the wide distribution of outlets and stock output. The deep docking of the whole cycle has a high demand for the comprehensive strength of the suppliers.

"For example, ten thousand or twenty thousand sets a month, many enterprises can not keep up with them, or do not have large quantities of inventory, or start up at a slower pace. We can do that. We have the largest output in China, which is close to 8 million units a year. " He Yadong said.

He Yadong disclosed that the share of cooperation with developers accounted for about 20% of the sales volume of boss electrical appliances. According to the industry data, the sales share of the boss electric appliance is about 40%, and FOTILE is about 28% in the whole refined kitchen electricity market.

He Yadong is also optimistic about the performance in the next few years. He believes that the scissors gap between housing sales and completion is very large, but it began to improve in August. "It is estimated that there will be some improvement next year, because the recent policy is a little bit loose. We'll see completion. "

Kitchen and electric enterprises are concerned about the completion area. The demand for kitchen electrical products is usually generated after the completion of the housing delivery. The hardcover room is opened to the kitchen electrical product installation, and the interval is about 2 years. Benefiting from the growth of the national hardcover housing opening project after 2016, the demand of kitchen and electric enterprises in the following years will be gradually released.

A number of brokerage research pointed out that in the medium to long term, the kitchen electric industry growth space: one is the B terminal engineering business, under the policy promotion, with the advent of the hardcover housing era, developers are also inclined to choose brand leading suppliers, the boss electrical channel structure is expected to change, the engineering channel accounts for a higher proportion than the future, and the two is the category expansion. Many kitchen and electric enterprises, including owners' appliances, are developing and selling diversified kitchen electric appliances. According to China Yikang data, as of September 30, 2019, the owner's electric range hood, gas cooker and embedded microwave oven kept the first place in the industry, and the market share of embedded disinfection cabinet and embedded steamer was also the top three.

Future home

Since the concept of "fully decorated houses" was first mentioned in 1998, after more than 20 years of development, China's real estate market has entered the era of fine decoration.

In 2017, the Ministry of housing's "13th Five-Year plan for the development of construction industry" clearly pointed out that by 2020, the newly completed residential area will reach 30%.

According to Orville cloud network data, China's fine decoration commercial housing penetration in 2018 reached 27.5%, compared with overseas hardcover housing penetration, North America 80%, Europe 86%, Japan 84%, there is still room for improvement.

"China real estate fine decoration kitchen electricity industry white paper" believes that intelligence, integration, green, is the future development direction of housing three key words.

Wang Shao, President of the Guangdong real estate industry association, said that when housing returns to the people-oriented brand, real estate developers and brand kitchen electric suppliers will cooperate with each other to create intelligent terminals connected with terminals.

He Yadong recalled that 11 years ago, when the boss electric appliance started to enter the refined kitchen electricity market, the housing enterprises basically only recognized the foreign brands, but by constantly taking developers to see the factory and contact product design, the boss electric appliance as China's leading brand was finally recognized. At present, in the field of residential decoration and kitchen electricity, domestic brand foreign investment brands have been overwhelmingly winning.

At the same time, although it has been developing rapidly for ten years, so far, the kitchen electricity of China's refined decoration residences is only equipped with hood and cooker. "This is called the" old kitchen ". Now we have put forward the concept of" China's new kitchen ". He Yadong explained that the new logo is made up of flue gas, cooking utensils, steaming and baking machines and dishwasher.

It takes time. It includes the change of people's living habits, the cost considerations of developers, and the maturity of related products.

As a 40 year enterprise, He Yadong believes that the future of household appliances, including kitchen and intelligent, is a major trend, so the boss electrical appliance research and development in an important position.

According to He Yadong, the boss electric appliance has set up two laboratories to build healthy intelligent kitchens with Wanke in Xiong an, and Gen Xu Hui set up a joint laboratory for residential exhaust pipes. It also set up bases and research institutes in Zhejiang and Shenzhen, and set up innovation centers in California, USA.

He believes that the cooperation between brand suppliers and developers should continue to upgrade, not only in joint research and development, but also in joint marketing and supply chain finance.

For example, when joint research and development, boss Electric will jointly plan kitchen space with developers in the design stage of residential projects, He Yadong said. "Now we have joint research and development with Gezhouba Dam, Xu Hui, Vanke and Biguiyuan."