Looking back on the development of the past 10 years, we can find that the growth curve of the small household appliance market is not healthy. It is almost always in the state of "sudden popularity and weak follow-up", rather than stable and continuous improvement. In 2020, when Internet celebrity small household appliances become a hot product category, many industry views believe that the popularity of Internet celebrity small household appliances is lasting.

From the big background, the Growth Logic of small household appliances exists. Under the background of the gradual improvement of the voice of the younger generation of consumers, the rise of new consumption formats such as "single economy" and "lazy economy", coupled with the development of scene content marketing such as live broadcasting and goods, it is easier to trigger favorable factors such as consumption impulse, which has become the main reason for the high growth rate of small household appliances in 2020.

01、the end of small household appliances is not bear appliances
However, in 2021, wanghong small appliances were "quickly discouraged". The data show that from January to September 2021, the retail sales of 12 categories of small appliances in kitchens across the country reached 41.93 billion yuan, a year-on-year decrease of 12.2%, and the retail sales reached 182.868 million units, a year-on-year decrease of 10.6%.

Industry insiders believe that under the background that the advantages such as the single economy, the lazy economy are still prevalent, and the live broadcasting of goods is becoming more and more daily, the growth momentum of online red small household appliances has stagnated or even regressed, and there are more problems in the development model of small household appliance industry.

In fact, although the development of Internet celebrity small household appliances will be at the peak in 2020, many problems will still be exposed. Insiders point out that high appearance value can not achieve small household appliances. For netred bear, one of the netred small household appliances, although its successful marketing and focus on appearance help it quickly attack cities and land. However, its development model of focusing on marketing rather than products also has a series of sequelae this year: product quality, innovation ability, after-sales guarantee, etc. after the halo of small household appliances faded, it was exposed on the beach and questioned the supply chain of Xiaoxiong electric appliances.

Last year, the halo of small household appliances covered many problems. Abosin.cn electric appliance was found to have failed in the product structure due to its cooking machine in the special supervision and random inspection organized by Zhejiang market supervision bureau. Various problems of wanghong small household appliances were revealed. In the first half of 2020, the R & D expenditure and marketing expenditure of Xiaoxiong electric appliances were 40.29 million and 210 million respectively. Marketing expenditure is five times that of R & D. Although Xiaoxiong electric later promised to pay attention to product quality, it has formed inertia.

Although the additional expenditure on R & D of Abosin.cn electric appliance this year increased to 60.14 million yuan in the first half of this year, an increase of 49.25%, it is still less than a quarter of the marketing cost of 246 million yuan. There is no breakthrough in product function innovation and product quality, coupled with the rise of raw material prices and the decline of e-commerce dividends, the performance of Xiaoxiong electric appliance can not stop in the downward trend.

02. What about Dyson?

If the low price model doesn't work, can high pricing bring life to the small household appliance industry? Different from the performance decline of Abosin.cn electric appliance, Beiding, which takes the high price route, has maintained a high growth rate with high profit margin. In the first three quarters of this year, Beiding's total revenue of 540 million increased by 23.3% year-on-year.

However, industry insiders believe that Beiding's high price route is a strategy forced to enter the small household appliance market later. If Beiding only does high-end market segmentation, it is difficult to maintain sustainable growth. For China's small household appliances, Dyson's "luxury model" may be difficult to get through.

In fact, the creation of explosive products depends not only on opportunities, but also on innovation. Internet celebrity small household appliances are a flash in the pan because they meet the opportunity, while the decline is due to the lack of innovation. Dyson's popularity in the Chinese market stems from this. In addition to being "expensive", the popularity of Dyson's Chinese market in 2016 is closely related to its label of "black technology". At first, Dyson's blockbuster was to solve the problem of air hole blockage of old vacuum cleaners. Dyson invented a double air rotation system without dust collection bag, which solved the pain point of consumers using vacuum cleaners in one fell swoop.

Today, consumers criticize Dyson for the same products. Regardless of the short service life and peculiar smell of the dust box during the use of the product, the corresponding users of the products of all generations have fed back the same problems on social media and complaint platforms. This makes Dyson no longer popular with Chinese consumers. According to ZDC data, among the brand attention in China's Vacuum Cleaner market, Dyson's attention has decreased from 34.33% in 2016 to 23.6% in 2018 and 22% in 2019. In the statistics of the first half of 2020, this data has dropped to about 14% again.

At the same time, high product prices are also reducing consumer acceptance. Once, Nielsen once judged Chinese consumers. Consumers are smarter than ever and will rationally choose cost-effective products. However, for those products that meet their own styles and interests, they can ignore the cost and consume willfully.

In the field of small household appliances, price is a factor that cannot be ignored. Even in the Z era, which grew up in the era of abundant materials, price still maintains a certain sensitivity. The latest survey report of vipshop shows that although users only see "like or not" when choosing products, their sensitivity to price still exists. Data show that nearly 90% of consumers will buy goods only after price comparison, and nearly 80% will participate in special price activities such as discounts and second kill.

It is not difficult to see that when making consumption choices, more and more consumers no longer unilaterally pursue the flaunting and display attributes brought by high prices, and "only buy the right, not expensive" has become a consumption trend. Small household appliances are not products with strong demand, and price is a more important factor. If the product innovation can not be accepted by consumers, and then set the price so high, users may not be easy to accept.

Facts have proved that in the small household appliance market where thousands of fans compete together, innovation can make the brand stand out and let young people continue to pay for the "good life" created by the brand.