Little Swan based on high-end market

Little Swan A released three quarterly reports a few days ago. In the first three quarters, it achieved operating income of 6.35 billion yuan, a year-on-year increase of 38.8%, of which revenue in the third quarter was 2.35 billion yuan, an increase of nearly 60%, and a net profit of 100 million yuan, an increase of 7.88 percentage points.

Industry analysts believe that the significant growth of Little Swan's third-quarter results is mainly due to factors such as product mix adjustment, market confidence recovery, and improved export profitability.

I. Improvement in profitability of product structure adjustment According to the 2013 White Paper of China's Washing Machine Market released by the National Information Center, China's washing machine industry achieved recovery growth in 2013, and the pace of product product structure adjustment accelerated significantly.

Secretary of the Board of the Little Swan Zhou Sixiu said that Little Swan has significantly increased the proportion of products with high gross margin roller and pulsator this year, and further integrated and optimized the dealership platform to accelerate the expansion of distribution network and improve the coverage and effectiveness of outlets.

At the same time, Zhou Sixiu also frankly stated that since 2011, Little Swan underwent a series of business transformations including marketing splits under the umbrella of the US Group, and the destocking of channels led to a lower base, so the future may not be able to maintain the current increase. speed.

However, industry observers are still optimistic about the future growth potential of Little Swan. Hua Hong Securities researcher Zhang Hongdao said that with the arrival of the washing season, Little Swan will maintain its rapid growth in the fourth quarter.

II. Based on the data of high-end, high-capacity and intelligent national information centers, with the deepening of the adjustment of product structure by washing machine companies and continuous improvement in the consumption level of the urban market, the growth momentum of high-end washing machines is significant. It is expected that the proportion of high-end products will increase in 2013. It reached 30.81%.

Wang Lei, deputy director of the China Household Electrical Appliances Association, said that large-capacity, intelligent, energy-efficient, and green environmental protection will be the main development direction of washing machine products, consumers will pay more attention to the improvement of quality of life, and high-quality products will gradually become Consumer choice.

It is understood that after the withdrawal of the Rongshida brand, the Midea Group adheres to the dual-brand strategy of Little Swan and Midea in the washing machine business, and their respective positioning is different: Little Swan's product positioning is professional, technology, and high-end, while the US washing machine's label is new and fashion. The two brands are distinguished from design, research and development to terminal sales.

When talking about the future direction of technology research and development, Zhou Sixiu said that Little Swan will increase scientific research in large-capacity and intelligent sensing technologies in the next year.

3. Embraced e-commerce in the future will push the O2O model washing machine online sales growth has caused a change in the retail channel of washing machines. According to Ovid Consulting's data, e-commerce channel is no longer a supplement in the retailing of washing machines and is gradually rising to the mainstream channel: it accounted for 3.1% in 2011, 5.7% in 2012, and 8.9% in 2013. 2016 is expected to exceed 20%.

China National Grid Editor-in-Chief Lu Shenghua believes that changes in the channels will bring about product changes. Integration with the Internet is a trend in the development of the home appliance industry. Traditional home appliance manufacturers should take the initiative to embrace e-commerce and accelerate the process of integration with the Internet.

In response, Zhou Sixiu said that Little Swan has already cooperated with e-commerce companies such as Jingdong, Suning, Gome, Tmall, Dangdang, and Kuba. The current e-commerce channel accounts for 4%-5% of Xiaosong's product sales, and it will account for the future. Will be further improved.

At the same time, she also disclosed that Little Swan has increased its investment in e-commerce since the second half of last year and has now established a professional e-commerce team. In the future, Little Swan will step up its online and offline integration efforts, and also push the O2O model.