Delmar: From small household appliances to globalization, the road to performance growth driven by innovation

Source of this article: Times Business School Author: Yuan Chong

Sentence / Motoshige

In the macroeconomic changes in 2024, the small household appliance industry is facing unprecedented challenges and opportunities. Delmar is moving forward steadily in the adverse current to achieve high-quality and sustainable development.

Recently, Delmar (301332, SZ), an innovative home appliance brand company, released its 2024 semi-annual report. The report shows that Delmar's overall performance in the first half of the year has achieved steady growth, with revenue and net profit going hand in hand. Among them, operating income increased by 4.22% year-on-year; Non-net profit increased by 2.23% year-on-year.

In the first half of the year, Delmar continuously optimized its product structure, enhanced its competitiveness in market segments, and provided guarantee for performance growth through its keen business sense, combined with rapid response product design and development capabilities and accurate online marketing capabilities.

At the same time, with its rich experience in Internet operation and brand effect, Delmar has realized the diversification and global layout of sales channels and steadily promoted the brand to go overseas. By providing consumers with cost-effective, high-value, and innovative home appliances, it has effectively driven profitable growth.

"Revenue + net profit" goes hand in hand, and innovation drives development

In the first half of 2024, the overall economic environment is complex and changeable, and small household appliances are optional consumer goods, and the overall development of the industry is under pressure.

In the first half of 2024, Delmar will achieve operating income of 1.621 billion yuan, a year-on-year increase of 4.22%; the net profit was 67.9493 million yuan, a year-on-year increase of 0.71%; The non-net profit was 64.6699 million yuan, a year-on-year increase of 2.23%, continuing the growth trend since the first quarter.

The reason for this is closely related to Delmar's always adhering to the principle of demand-oriented and innovation-based.

As small household appliances enter the stage of gradual iteration from subversive innovation, in response to consumers' needs for household appliances in different work scenarios, life scenarios and age stages, Delmar closely combines consumer feedback, accumulates multi-dimensional and multi-level user feedback information, and conducts product research and development based on in-depth multi-dimensional analysis of user portraits, lifestyles and product attributes, so as to create innovative home appliances that meet new consumer needs.

Delmar's emphasis on technological innovation is most directly reflected in its unstinting investment in product research and development.

At present, Delmar has set up a home health R&D center and a water health R&D center, and the two R&D centers learn from each other in the R&D system to achieve "systematic" and "agile" two-wheel drive.

In terms of systematization, Delmar actively learns from Philips' systematic product life cycle management system, creates a standardized R&D process, and improves the stability of product development and quality control.

In terms of agility, Delmar gives full play to the advantages of Internet brands directly facing consumers, maintains close connection and communication with consumers, quickly obtains consumer needs and pain points, initiates product concept verification as soon as possible, and realizes rapid product development and iteration while ensuring quality.

In addition, Delmar has also established a set of market and data-driven product management and development systems by implementing ITP (innovation to product) reform at the production and research end, using information system tools, promoting information sharing and collaboration between cross-departmental teams, comprehensively improving enterprise innovation management capabilities, and further enhancing product innovation and iteration capabilities.

"Delmar + Philips" two-wheel drive strategy, Intensively cultivate market segments

In the long run, the general trend of improving the overall income level of residents and the pursuit of improving the quality of life has not changed, and the small household appliance industry still has a lot of room for development in the future. In this regard, Delmar put forward a clear development plan, and the company will continue to build innovative small household appliances around the core strategy of "multi-brand, multi-category, and globalization", showing good sustainable growth prospects.

In the face of market opportunities and challenges,

In the first half of 2024, Del Mar We will continue to deepen the two-wheel drive strategy of "Delmar + Philips", continue to increase R&D investment, define and develop innovative products guided by consumer needs, and accurately grasp the window of opportunity

Through different brand images, we are close to the segmented user groups, intensively cultivate the market segments, and optimize the product structure.

For the "Delmar" brand,

Delmar continues to deploy in the field of clean electrical appliances, Starting from the needs of users and scenarios, we will continue to innovate product functions and user experience for different consumer market segments

to achieve the effective integration of product performance and market demand.

For the "Philips" brand, Delmar reorganized the product line after the acquisition of Philips' water health business, actively integrated the water health product supply chain, and built a complete closed loop from procurement, production, warehousing to logistics.

With the help of the e-commerce system to complete direct sales, Philips series products not only quickly increased revenue, but also effectively improved profit conversion. In the first half of 2024, the revenue of Philips' main product categories water health and personal care health increased by 10.30% and 26.54% year-on-year, respectively, achieving rapid growth.

Actively embrace "healthy consumption".

With the increase of per capita disposable income in mainland China, the gradual aging of the population and the improvement of residents' health awareness, the demand for health continues to increase.

Delmar The market demand of the water purifier business is expected to be further released

。

"Internet gene + brand effect", twice the result with half the effort

According to the data of the General Administration of Customs, in the first half of 2024, the import and export of cross-border e-commerce in mainland China reached 1.22 trillion yuan, a year-on-year increase of 10.5%; It was 4.4 percentage points higher than the overall growth rate of the mainland's foreign trade in the same period.

With the normalization of overseas consumer demand, the mainland's "cost-effective" products have strong competitiveness, and cross-border e-commerce is expected to usher in new development opportunities.

Different from other peers, Delmar has rich experience in Internet operations, and can fully tap the data potential brought by Internet sales, give full play to the advantages of Internet brands directly facing consumers, maintain close connection and communication with consumers, quickly gain insight into consumer needs and pain points, and realize the rapid entry of products into the target country market and seize the overseas market.

Delmar has said that in the future, it will continue to polish its core products, establish competitive advantages in core categories in major national markets, and occupy a certain market share in related categories; At the same time, it will further deepen the layout of overseas channels, develop the core supermarket channels of local countries on the offline channel side, and continue to deploy the core e-commerce platforms of various countries and regions on the e-commerce platform side.

At present, Delmar has carried out overseas online direct sales business through e-commerce platforms such as Amazon, and carried out overseas distribution business with the help of online distributors, steadily promoting the brand to go overseas.

With Supply chain advantages, product innovation capabilities and cost-effective products, Delmar Realize the development in key regions such as Asia Pacific, Southeast Asia, Europe, and the Middle East, and establish core category advantages in core countries

。

In addition, the Philips brand is a world-renowned brand, and Delmar uses its brand influence as the foundation for going overseas, and through its own team advantages and supply chain advantages, it can also be recognized by local consumers at a lower cost

。

In the first half of 2024, Delmar achieved overseas sales revenue of 300 million yuan, an increase of 11.82% year-on-year, and its overseas strategy has achieved remarkable results. Delmar is rooted in the globalization strategy and actively explores overseas markets.

Based on China's core manufacturing capabilities, the acceleration of product innovation and iteration and the development of cross-border e-commerce formats are superimposed Driven by the Internet gene + brand effect, overseas sales are expected to achieve sustained growth

。

summary

According to the data of the Toubao Research Institute, the market of the small household appliances industry in the mainland still maintains the situation of "small household appliances, large market", and the market size of small household appliances in the mainland has reached 475 billion yuan in 2022, and this figure is expected to reach 539.2 billion yuan in 2027.

As Delmar, which mainly focuses on home environment, water health and personal care health, it relies on

The two-wheel drive strategy of "Delmar + Philips" and the "Internet gene + brand effect" are expected to tell a wonderful story in the future.