--- title: "CICC: The demand in the small home appliance industry is expected to continue its recovery trend, and the industry's profitability is expected to improve" type: "News" locale: "en" url: "https://longbridge.com/en/news/243584104.md" description: "CICC released a research report indicating that, influenced by a low base and national subsidy policies, the demand for small home appliances is expected to continue recovering, with significant improvements in profitability anticipated. With the promotion of the home appliance replacement policy, industry competition is easing, and companies are focusing on high-quality development, leading to a restoration of the industry's average price. It is expected that the profitability of small home appliance companies will be enhanced. The firm analyzed market penetration, product development, market development, and diversification strategies, and pointed out the risks of market competition and demand fluctuations" datetime: "2025-06-08T07:55:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/243584104.md) - [en](https://longbridge.com/en/news/243584104.md) - [zh-HK](https://longbridge.com/zh-HK/news/243584104.md) --- # CICC: The demand in the small home appliance industry is expected to continue its recovery trend, and the industry's profitability is expected to improve According to the report released by China International Capital Corporation (CICC), driven by the home appliance replacement policy and the low base effect, the demand in the small home appliance industry is expected to continue its recovery this year. The report indicates that under the backdrop of moderate demand recovery, industry competition is easing, companies are focusing on high-quality development, the industry average price is further recovering, and the reduction of platform fees is alleviating company pressure. As a result, CICC expects the profitability of small home appliance companies to improve significantly. ## CICC's main viewpoints are as follows: **Low base combined with national subsidies leads to moderate recovery in small home appliance demand.** Before 2020, the kitchen small appliance industry maintained steady growth each year, with a CAGR of 7% in online retail sales from 2016 to 2019. During the pandemic in 2020, the onlineization of small appliances accelerated, catalyzing home demand, and the small home appliance industry experienced a peak moment, with the revenues of BEAR APPLIANCE, BODUM, and Xinbao increasing by +36%, +27%, and +67% year-on-year, respectively. Subsequently, the small home appliance industry entered a plateau period. Although new categories such as air fryers and coffee machines brought some growth in the short term, the overall industry prosperity remained weak. In 4Q24, the low base combined with national subsidy policies shows a recovery trend in industry demand, with the scope of national subsidies further expanding in 1Q25. According to AVC, the online retail sales in 4Q24 and 1Q25 are expected to increase by +8% and +6% year-on-year, respectively, with retail volume remaining basically flat, mainly driven by price. **Dawn moment, turning point in profitability emerges.** The report believes that companies should focus on improving profitability. Under the backdrop of moderate demand recovery, the easing of price wars and structural adjustments ensure stable gross margins, while platform fee reductions and self-cost control lower expense ratios, ultimately leading to the restoration of company profitability. Small home appliance companies had a relatively low base in the early stage, and the resonance of the industry and their own performance brings a turning point in results. CICC expects the improvement in profits to be better than that in revenues. **Ready to go, seeking a second growth curve to break through difficulties.** The report analyzes various strategies based on the Ansoff Matrix: 1) Market penetration strategy, targeting niche groups. 2) Product development strategy, focusing on technological innovation and scenario-based applications. 3) Market development strategy, expanding into overseas markets. 4) Diversification, exploring new categories. **Risks** Risks of intensified market competition; risks of market demand fluctuations; risks of raw material price fluctuations ### Related Stocks - [002959.CN](https://longbridge.com/en/quote/002959.CN.md) - [002705.CN](https://longbridge.com/en/quote/002705.CN.md) - [03908.HK](https://longbridge.com/en/quote/03908.HK.md) ## Related News & Research - [03:40 ETHaier Named the World's Only IoT Ecosystem Brand in Kantar BrandZ Top 100 for Eight Consecutive Years](https://longbridge.com/en/news/286732510.md) - [PUTIN: NUCLEAR WEAPON USAGE IS ONLY A LAST-RESORT MEASURE](https://longbridge.com/en/news/287226966.md) - [Figure AI had one of its robots race a human to sort packages. 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