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High gross margin sales of small appliances urgent need to upgrade small-scale industries

High gross margin sales of small appliances urgent need to upgrade small-scale industries

Once when there is a spread within the domestic appliance industry scripts: "As the home appliances sold as appliances," and "selling color TV, and will not sell refrigerators, air-conditioning" and "selling as selling large appliances small home appliances", a few sentence points to the high operating profit margins of small household appliances.

The end of August this year, the first semi-annual report of listed companies issued appliances, small home appliances once had up to 50% of the gross profit margin is not booming, some home appliances small home appliances business enterprise gross margins and even lower than refrigerators, air conditioners, etc. white business.
With Haier, Aucma, Gree Electric Appliances, ASD appliances, nine positive shares, Vantage shares, Midea, Changhong and a number of household electrical appliance enterprises have entered, while a number of small household electrical appliance enterprises diversified expansion Prior to the market is not highly competitive small appliance market, quickly showing a white-hot trend.

Small appliances small margins with high sales

Data, Qingdao Haier Refrigerator gross profit margin was 30.02%, while the small appliance business was only 24.71% gross profit margin. Gree air-conditioning business gross margin was 16.27%, but the small appliance business was only 7.16%. Aucma refrigerator freezer margin was 22.1%, 21.21% of small appliance business. Small household appliances and professional semi-annual report of listed companies in the data: BDO Runda small home appliances business, gross margin was 19.44%, Yi Li Pu's gross profit margin was 15.12%, MACRO small home appliances business, gross profit margin was 24.06 %, ASD appliances small home appliances gross margin was 23.88%. Sun shares nine gross margin was 37.03% of small household appliances, is the highest among all of the above companies. Small appliances industry veteran observers Hong Shibin analysis pointed out that due to the high profits Joyoung Soymilk its leading position on the market. Supor, ASTAR is from the kitchen into the small home appliances industry, so their profits mainly rely on its leading position in the cookware industry to support.

A domestic home appliance chain enterprises from the 2010 semi-annual report shows, in its home appliances business, the TV audio, refrigerator, washing machine, small appliances, kitchen appliances three categories of product sales gross margins were 17.8%, 18.86% , 19.41%, while gross margins are still higher than that of color TV sets of small appliances, refrigerators, and other services, but not the size and color TV sales by half.

Urgent need to upgrade the small appliance industry

Over the years, small domestic appliances present in the chaos of the market frequently, a group of SMEs in order to reap benefits, public will adopt the "shoddy, could save the province" and other means to cheat consumers. The AQSIQ press release from the last few years the quality of products in the national sampling report also found that the quality of small household electrical appliances have been far below the passing rate of air-conditioning, color TV, refrigerators and other large home appliances. Some heaters, drinking fountains and other products of the checks pass rate is even lower than 70%. In the small household electrical appliances production base in Foshan, Guangdong, the main spot checks, quality checks pass rate is even lower than 50%. In this regard, Hong Shibin believe that this reflects the growing development of the industry is still in urgent need of a reshuffle or capital reorganization of the industry, thereby enhancing the entry threshold, increase brand concentration, can truly make a small household appliance industry from large to strong .

Insiders told reporters that the field of small home appliances too many product categories, whether large home appliances business, or professional small home appliances business, can not build a product for each specific production lines. Once a certain type of market, selling small household electrical appliances, many enterprises will OEM the way through third-party share.