In the Chinese mainland, the market for small kitchen appliances is facing a situation of declining sales and rising prices, known as “shrinking quantity and rising price.” In the first half of this year, retail sales across all channels decreased by 14.6% compared to the previous year, with an average price reaching 260 yuan (RMB, the same below); Jiuyang, Xiaoxiong, Supor, and Beidin all saw a decrease in net profit, with Xinbao Co., Ltd. expecting a decrease of over 70%.
According to the data from the research institution Aowei Cloud Network, retail sales of small kitchen appliances in the Chinese mainland in the first half of the year were 116.49 million units, a decrease of 14.6% year-on-year; retail sales amounted to 30.26 billion yuan, a decrease of 4.8%; and the average market price rose to 260 yuan, an 11.5% increase compared to the previous year.
Reports from Orient Securities show that online sales of rice cookers, high-speed blenders, and juicers in the first half of the year decreased by 3.06%, 11.49%, and 13.94% respectively, with sales volume dropping by 12.56%, 16.80%, and 16.17% respectively.
As small kitchen appliance sales decline, overall consumer growth in the Chinese mainland is also at a low point. Data from the National Bureau of Statistics of the Communist Party of China shows that the total retail sales of consumer goods in July increased by only 0.6% year-on-year, with a 1.2% growth in the first seven months of this year.
Jiuyang Co., Ltd., known for its soy milk maker, is a major player in the Chinese small kitchen appliance market, offering products including high-speed blenders, rice cookers, and air fryers.
According to reports from Daily Economic News, Jiuyang Co., Ltd. reported operating income of 3.489 billion yuan in the first half of the year, a decrease of 12.49% year-on-year; net profit attributable to shareholders of the listed company was 717.732 million yuan, a decrease of 41.52%; and net profit after deducting non-recurring gains and losses decreased by 60.21%.
Income from food processors and nutrition pots decreased by 18.57% and 18.84%. During the same period, Jiuyang’s research and development investment decreased by 21.01%, and net cash flow from operating activities changed from 332 million yuan in the same period last year to negative 52.9222 million yuan.
As of August 21, Jiuyang’s stock price has fallen by 14.18% year-to-date.
Other small appliance companies are also under pressure. Xiaoxiong Electric reported a revenue of 2.349 billion yuan in the first half of the year, a decrease of 7.34% year-on-year; net profit was 120 million yuan, a decrease of 41.30%. Specifically, revenue from small kitchen appliances decreased by 9.47%.
Supor’s revenue in the first half of the year dropped by 0.59% to 11.41 billion yuan, with a net profit decline of 7.70% to 868 million yuan.
Although Beidin Co., Ltd. saw a revenue growth of 14.68% to 495 million yuan, net profit decreased by 14.69% to 47.6297 million yuan.
Xinbao Co., Ltd.’s performance forecast indicates that the company expects a net profit of 125 million to 155 million yuan in the first half of the year, a decrease of 71.44% to 76.97% year-on-year.
According to related reports, a consumer in Hangzhou named Xiao Lin purchased a noodle maker, only used it twice, then stored it in a cabinet. Beside it were an air fryer she bought earlier but never opened, and a high-speed blender used only three times.
It is reported that many air fryers, high-speed blenders, egg cookers, and breakfast makers are labeled as “brand new, unopened” or “used only two or three times” on second-hand platforms, with some selling for less than half of the original price.
Song Jiarong, Senior Research Manager at Aowei Cloud Network’s Small Home Appliance Business Department, mentioned that the demand for traditional cooking small appliances remains weak. Currently, some small appliances are integrating AI functions, mainly focusing on voice interaction, ingredient recognition, and automatic program control. However, AI has not yet become the core driver supporting the increase in product value, and some functions suffer from the issue of marketing concepts outweighing actual value.