The sharp decline in the growth rate of Vantage highlights the predicament of kitchen appliances industry

Although Vantage stated that it is not easy to realize the rise under the bad economic situation, it is undeniable that with the impact of real estate control policies and other factors, the days of kitchen and electric companies are no longer good enough. The annual report issued by Vantage Co., Ltd. shows that in 2011 the company achieved total operating revenue of approximately 2.039 billion yuan, an increase of 24.63% year-on-year; the net profit attributable to shareholders of listed companies during the period was approximately 139 million yuan, an increase of 14.29% year-on-year, far below 2010. 122% increase in net profit for the year.

In the annual report, Vantage stated that such performance is in line with expectations. In 2011, although the kitchen and bathroom appliances industry was slowed by the impact of macroeconomic policies such as real estate regulation and financing credit, the company continued to expand the township market while maintaining the existing channel consolidation and development. We have achieved good results in the development and operation of new channels such as e-commerce platforms and real estate direct-operating platforms. In addition, Luo Bin, manager of Vantage's public relations department, explained that the company’s revenue base in 2009 is relatively low, so it will not show significant growth until 2010.

In this regard, home appliance analyst Liu Buying pointed out that although Vantage's explanation was established, it is undeniable that the kitchen electric industry as the industry most affected by the real estate market is experiencing unprecedented pressure from the industry. Luo Bin also stated that it is expected that the market situation in the first half of this year will not be very optimistic. Companies are expected to launch high-end cabinet products to increase gross profit, but the specific details are not yet disclosed. In fact, starting from the first half of last year, the kitchen and electric industry began to report bad news. Although last year's full-year results have not yet been released, the profits of Wanjiale fell by 60% in the first half of last year, and Sino-Iceon data show that the market share of Shuaikang has gradually been eroded. .

In this context, kitchen and electric companies are eager to improve their profitability. Among them, the owner of the appliance through the joint venture with the Spanish Fage Group, the introduction of Dize brand, to enter the Chinese luxury appliance market. Shuaikang Group also quietly launched its e-commerce brand "Connor" and sold kitchen electric products on the Internet at a low price. Industry analyst Liang Zhenpeng believes that the boss's cooperation with a Spanish company that is not well-known in the world has no effect on the high-end image of the brand. For Shuaikang to take the low-end strategy is also difficult to work, because Shuaikang Conner kitchen appliances can not be found in physical stores, online sales of consumers is also difficult to link this product with Shuaikang, no brand influence, Sales are also difficult.