The home appliance industry has always been an important part of China's national economy. In 2024, China's home appliance market experienced a shift from a cold to a hot state.
In the first half of 2024, consumption in China's home appliance market was sluggish, and the overall sales of the industry showed a significant decline. However, with the implementation and promotion of large - scale national subsidies for trade - in programs in the second half of the year, this situation was reversed. The sales volume of many home appliance enterprises increased significantly, and the overall market size reached 900 billion yuan, breaking the historical high point of the home appliance industry.
However, the boom did not extend to every player in the industry. Enterprises with product categories within the scope of national subsidies saw a recovery in performance, while a number of small home appliance brands whose product lines were not involved in the national subsidies faced performance pressure and dismal sales. Data from AVC shows that the overall retail sales of small kitchen appliances in China in the first three quarters of last year was 37.1 billion yuan, a year - on - year decrease of 4.6%.
If we summarize the small home appliance industry in 2024, it can be described as "efforts and exploration under performance pressure".
Weak domestic demand and stalled growth
"Under pressure" was the main theme for small home appliance enterprises in 2024. Aotou Finance statistics found that enterprises such as Joyoung, Bear Electric, and Feike Electric all experienced a decline in performance. For enterprises like Supor, whose performance continued to rise, the growth rate also showed a downward trend.
Financial reports show that in the first three quarters of 2024, Joyoung achieved revenue of 6.182 billion yuan, a year - on - year decrease of 8.84%, and net profit attributable to the parent company of 0.98 billion yuan, a year - on - year decrease of 73.02%. In the same reporting period, Bear Electric achieved revenue of 3.139 billion yuan, a year - on - year decrease of 5.4%, and net profit attributable to the parent company of 180 million yuan, a year - on - year decrease of 42.91%. Feike Electric was no better. In the first three quarters of 2024, it achieved operating income of 3.321 billion yuan, a year - on - year decrease of 16.85%, and net profit attributable to the parent company of 465 million yuan, a year - on - year decrease of 43.82%.
Supor, whose performance still maintained growth, also showed signs of weakness. Financial reports show that in the first three quarters of last year, Supor achieved revenue of 16.512 billion yuan, a year - on - year increase of 7.45%, and net profit attributable to the parent company of 1.433 billion yuan, a year - on - year increase of 5.19%. However, looking at individual quarters, the year - on - year growth rates of Supor's non - recurring profit - adjusted net profit in the first three quarters of last year were 8.06%, 7.16%, and 1.05% respectively, with an obvious downward trend.
In the eyes of the outside world, the pressure on domestic sales of small home appliance enterprises has cyclical reasons. "The replacement cycle of small home appliance categories is generally 3 to 5 years. The concentrated outbreak of small home appliance demand was in 2020, so it is reasonable for the industry to experience a downturn in 2024. As some small home appliance categories enter the scope of national subsidies for trade - in programs in 2025, the performance of relevant enterprises may rebound against the trend." Industry analysts told Aotou Finance.
Decline in average product price, and volume-for-price strategy fails to save performance
With the overall decline of the industry, brands have resorted to various self - rescue measures, and engaging in "price wars" has become a common choice for many brands. AVC data shows that in the first three quarters of last year, although the overall retail sales of small kitchen appliances decreased year - on - year, the overall retail volume increased by 0.2% year - on - year, reaching 188.98 million units, indicating a decline in the average price of small kitchen appliances.
According to incomplete statistics from Aotou Finance, in 2024, the average prices of small home appliances of brands such as Supor, Joyoung, Bidn, and Midea all declined to varying degrees. Other data shows that the average price of small kitchen appliances in 2024 was 196 yuan, a year - on - year decrease of 4.8%.
"The technical threshold of the small home appliance industry is not high, and the homogenization competition of products is relatively serious. The sales volume of a brand depends to a large extent on the insight and creation of demand. However, once a popular product appears, imitators will emerge soon, which leads to the situation where the amount of marketing investment determines the level of sales volume." The above - mentioned industry analysts told Aotou Finance, "Therefore, when the industry as a whole faces a slowdown in demand, the volume-for-price strategy will reduce the overall profitability of the industry."
Growth relied on going global last year, what about this year?
With the weakening of domestic demand, many brands have turned their attention overseas. Xinbao Co., Ltd. relied on overseas sales and became one of the few enterprises in the industry to achieve performance growth.
Financial reports show that in the first three quarters of 2024, Xinbao Co., Ltd. achieved revenue of 12.69 billion yuan, a year - on - year increase of 17.99%; and net profit attributable to the parent company of 785 million yuan, a year - on - year increase of 6.66%. Looking at different markets, during the reporting period, its overseas sales revenue was 10.114 billion yuan, a year - on - year increase of 24.15%, and domestic sales revenue was 2.575 billion yuan, a year - on - year decrease of 1.25%.
It can be seen that even enterprises with growing performance face poor domestic sales, and the main source of growth is still the overseas market. However, whether this growth can be sustained is questionable. Taking Supor as an example, the growth rate of its overseas revenue slowed down in 2024, mainly due to the relatively high base in 2023.
Small home appliances are not without opportunities. On the one hand, the industry still has development prospects. Predictions from the business data platform Statista show that by 2028, the global small home appliance market size is expected to reach 310 billion US dollars, of which the small kitchen appliance market size will reach 133.6 billion US dollars.
On the other hand, news shows that in 2025, the subsidy scope for home appliance trade - in will be expanded to 12 categories, including dishwashers, water purifiers, microwave ovens, and rice cookers. The scope of national subsidies has extended to the small home appliance field, and relevant enterprises are bound to benefit from this wave of replacement demand and achieve a recovery in performance.
At the same time, it has been 5 years since the last outbreak of small home appliance demand. Small home appliances will also usher in a new round of renewal and replacement cycles, and consumer demand will be further released. The performance - pressured 2024 has passed, and the "spring" awaited by the small home appliance industry may be just around the corner.