Has the rise of the "door-to-door economy" boosted the reputation of home appliance repair services?

In the fierce competition of the small home appliance market, facing a wide variety of competitors and rapidly changing demands, some enterprises have set off a new wave to ride the wind, while others are trapped and struggling. How can companies maintain steady growth in an uncertain market environment?

Let's look for the answer from Little Bear Electric's recent 2022 Q3 financial report. The report shows that Little Bear Electric Appliances achieved a revenue of 850 million yuan in Q3, an increase of 16.29% year-on-year; The net profit attributable to shareholders of the listed company is about 92.19 million yuan, an increase of 84.51% year-on-year, and is generally in a steady upward trend. It is reported that Xiaoxiong Electric Appliances, which started the Double Eleven holiday this year, achieved impressive results in its first battle, with sales exceeding 100 million yuan in just two hours, far exceeding small home appliance enterprises in the same industry. Among them, the sales of categories such as rice cookers, electric lunch boxes, and wall breaking machines in the first half of the hour exceeded the full day sales of last year, and the air fryer topped the Tmall hot sales list. This is due to the deepening promotion of the boutique strategy, the strong resilience of its business ability was further released, and the transformation of high-quality product achievements was also accelerated. Today, the author will start from the popular product categories of Little Bear Electric, see big from small, and analyze the company's high-quality breakthrough strategy.

Building differentiated competitiveness and cultivating the development of incremental markets

As the small home appliance enterprise with the largest market share in the health pot market, Xiaoxiong Electric has sold over 22.71 million health pot products since 2015, ranking first in sales on JD and Tmall platforms for five consecutive years. So, how did Little Bear Electric excel and strengthen in the niche field of health kettles?

From a research and development perspective, Xiaoxiong Electric has always maintained a high proportion of research and development investment, and innovative achievements continue to emerge. It is reported that currently, Xiaoxiong Electric has over 60 patents in the health pot category alone, and has built 5 specialized intelligent production bases nationwide. It also has two top-level automated production lines in China, namely the shredder automation production line and the health pot automation production line. It is precisely the continuously accumulated technical strength that enables it to continuously cultivate segmented products, ensuring that its product line not only accumulates in quantity, but also makes a leap towards quality.

From a user perspective, although the basic needs of health kettles have been met, with the upgrading of consumption, users have put forward higher requirements - expanding from simple tea brewing to segmented needs such as functional use, stewing and cooking taste, and light noise reduction, which forces enterprises to upgrade from a refined dimension. For example, when users use a regular health pot, they often produce a "gurgling" noise after boiling. Xiaoxiong Electric has upgraded the material to solve the fundamental problem, achieving a technological breakthrough in the heating chassis, and ushering in the era of health pot heating plate 2.0.

Xiaoxiong Electric not only focuses on material and technology research, but also iterates in terms of function, capacity, and technology, deepening and deepening the functions of health kettles. In terms of category expansion, it achieves the goal of "everyone has their own strengths, everyone has their own strengths", continuously optimizing product form and performance, and bringing users different health solutions. It always maintains its position in the first tier of the health kettles category, successfully driving the development of health kettles, and growing from segmented innovative categories to essential categories, contributing to the overall revenue of the enterprise.

Continuously exploring innovation and maintaining multidimensional growth advantages

In the minds of many people, the health pot is the super symbol of Little Bear, but this category is just a big step it has taken to explore the small home appliance industry. Little Bear Appliances has horizontally explored and expanded new long tail product categories, vertically developed multiple SKUs on a single product, and built a rich product matrix. Currently, its advantages of "wide and fine" categories are slowly emerging, cultivating a huge incremental market.

Taking the most popular air fryer in the past two years as an example, according to the third quarter report on the small electricity market released by AVC, the omnichannel retail sales of air fryers from January to September 2022 were 5.85 billion yuan, a year-on-year increase of 182.3%. Behind the rapidly growing data is a mix of various brands in the air fryer market, with severe homogenization in appearance and function. However, there are only a few products that focus on intelligent and refined product upgrades. To this end, Xiaoxiong Electric Appliances has innovated its products around the processing method of air fryers, upgrading and launching products such as Xiaoxiong Visual Air fryer and Xiaoxiong Flip Reminder Air fryer, creating a differentiated and high value-added core competitiveness, widening the gap with other similar products, giving it sufficient competitive advantage to seize market share and drive continuous and steady revenue growth.