Overseas orders decreased, and Walmart's well-known supplier's revenue halved in half a year
As the outdoor leisure furniture industry continues to develop and the industry concentration gradually increases, more and more companies going overseas are beginning to seize overseas market share. Among them, there are some outstanding ones, such as Yayi Technology, whose market value exceeded 3 billion at the beginning of the year.
However, according to the half-year results recently released by Yayi Technology, its revenue and net profit both declined due to the impact of overseas markets.
Overseas orders decreased, Yayi Technology's revenue halved
Founded in 2005, Yayi Technology mainly produces fire pots and gas stoves , with the United States, Canada and other countries as its main markets. Its products are mainly sold on platforms such as Walmart and Home Depot.
At the beginning of its establishment, the company's fire pot series products successfully entered the US market as soon as they were launched, and the gas stove series products also caught up, winning the market advantage first in the industry. In December last year, the company was listed on the Shenzhen Stock Exchange.
However, with the relaxation of foreign epidemic prevention and control policies and the adjustment of economic policies of various countries after 2022, overseas consumers have spent less time at home, and their disposable income and consumption capacity have changed, which has had an adverse impact on the company's sales revenue and caused the company's performance to decline.
Figure 1 According to the data, in the first half of this year, Yayi Technology's revenue fell by 56% to 100 million yuan, and its net profit fell by nearly 30% to 35.47 million yuan. In the first quarter of this year, the company's net profit was still growing. Compared with the data in the same period of the first half of the year, the decline is obvious.
In terms of sales model, the company's export and domestic sales revenues both declined, by 55% and 99% respectively. However, in terms of cash flow, due to the timely receipt of sales and the reduction of cash expenditure for purchasing goods, the cash flow generated by Yayi Technology's operating activities increased by 1145% year-on-year.
In terms of products, among the major products sold by the company, the revenue of the main fire basin series products accounted for half of the total revenue, which was 54.69 million yuan. The gas stove table was second, with 35.46 million yuan. The sales of the fire basin table and gas stove were around 4 million yuan. Among the above products, except for the revenue growth of the gas stove, the other products all showed different degrees of decline.
In 2020, Yayi Technology's related products took advantage of the industry's popularity and sales increased significantly, with annual revenue increasing by 112.75%, giving it a leading advantage in the industry. Judging from the performance in the past two years, like many companies, the company's performance growth has slowed down due to market changes.
Yayi, labeled as a "Walmart supplier": It lacks its own brand, but its R&D capabilities are not bad!
Although Yayi Technology has been deeply involved in the industry for many years and enjoys a high market reputation at home and abroad, it is more often known as "Walmart supplier" and "OEM factory" rather than the private brand business that major overseas companies are focusing on. Figure 2
This leaves Yayi Technology with a gap in further branding. Although it has not yet formulated a future sales plan for its own trademark brand, the company revealed that it does not rule out the possibility of developing its own brand for design, production and sales in the future.
The company said that while continuing to expand overseas large supermarket ODM customers, they can also open up new sales channels through the development of their own trademark brands to continuously increase their market share. However, the company said that its production capacity is already saturated and the existing capacity can no longer meet the rapidly growing order demand of downstream customers.
If the company cannot further increase its production capacity when developing its own brand in the future, its production will be limited by capacity, affecting the normal sales of its own brand. In addition, the current sales model requires it to differentiate its product R&D, design and positioning from existing ODM customers, which poses a problem for its possible own brand business.
It is still unknown whether and how Yayi Technology will develop its own brand business in the future, but its advantages in product research and development, design, and production cannot be underestimated.
The products currently sold by Yayi Technology are actually a little unpopular, but as the outdoor leisure furniture and supplies market gradually moves towards personalization and fashion, the update and iteration of outdoor leisure furniture and supplies are accelerating. In this regard, only by continuously improving the quality and speed of product research and development can we maintain a stable foundation in the market.
Public data shows that the company currently has 1 invention patent and 32 utility model patents, and has designed more than 5,000 styles, with an average of more than 1,000 new styles added each year. In addition, Yayi's annual investment in research and development accounts for more than 2.5% of its total revenue, and more than 3% at peak times, which has accelerated the update and iteration of its products.
However, there are still many doubts in the industry about Yayi Technology's R&D capabilities, but this has not affected its dominant position and development in the industry.
Unpopular products are not “unpopular”
The industry in which Yayi Technology operates is a sub-segment of outdoor leisure furniture. There are relatively few large-scale enterprises in this field , and some enterprises do not have independent research and development capabilities, which provides an opportunity for Yayi to develop rapidly and "seize the beachhead".
In recent years, with the development of relevant technologies, Yayi Technology has continuously expanded its product line. Its home furnishing product series include fire basins, fire basin tables, gas stoves, gas stove tables, etc. Its export revenue accounts for 98% of its main business revenue , and its sales revenue in the US market accounts for more than 82% of its export revenue . According to comprehensive data, these seemingly unpopular products are actually quite popular.
According to Statista data, the global outdoor leisure furniture market is expected to have a compound growth rate of nearly 7% from 2015 to 2025, and the market size will increase from US$13 billion in 2015 to US$25.4 billion in 2025. The size of the North American market will be close to US$10 billion.
In addition, relevant surveys show that the global fire bowl market in its sub-sectors is expected to grow at a rate of about 24.86% from 2020 to 2025 , and the market size will be about US$1.37 billion by 2025. It can be seen that there is still a lot of room for development in outdoor leisure furniture and its sub-sectors.
In addition to the outdoor furniture market, other outdoor products such as tents, clothing, accessories, etc. are also popular among consumers. Related words such as "outdoor products, outdoor furniture, equipment" are also popular on major platforms. Other domestic companies that mainly produce related products, such as Mogodi and Zhejiang Natural, have benefited from market dividends and have performed well.
However, as the seller said: "Once others see the business opportunity, many people will rush in to share the pie, and even cause internal competition." This poses a challenge to companies similar to Yayi, how to continue to promote a development model with products and R&D as the core driving force. Walmart Art |
<<: Another big sale successfully passed the review!
In 2020, China's cross-border e-commerce impo...
Recently, Dick's of the United States launche...
Amazon is in trouble again. Zulily is back online...
Amazon to open five new locations in Canada Today...
In order to provide buyers with a better shopping ...
Wuhan Depa Technology Co., Ltd. was established in...
Amazon's system seems to be acting up again. ...
Feedly is an RSS aggregator application that supp...
In the past year, consumers' shopping experie...
On the evening of July 7, COSCO SHIPPING Holdings...
Looking at the cross-border industry, there are m...
According to a survey conducted by research insti...
On e-commerce platforms, the quality of a product...
Dongfeng CRM (Yiwu Lelong Technology Co., Ltd.) w...
According to Korean media reports, due to the rel...