The annual sales volume of a single product is 820,000 units, and the growth rate of e-commerce sales is obvious

As the pressure of life increases, various massage products are becoming more and more popular in the market. Many sellers are working hard to gain a foothold in the market. Shenzhen Beurer Technology Co., Ltd. (hereinafter referred to as Beurer) is one of the best sellers. It was successfully listed last year and its latest performance growth is encouraging.

Annual revenue is nearly 1.2 billion yuan, and the online growth rate of Beurer is obvious

Beurer's main products are smart massagers. Its own brands mainly include "breo" and "beurer". It has a presence both at home and abroad, and the Amazon platform is one of its channels for overseas e-commerce market.

The company's first massager product was launched in 2001. After years of hard work and continuous product optimization, Beurer's market share has continued to increase.

In terms of sales model, Breo adopts a combination of online and offline sales. Offline sales are mainly through direct stores, and online sales can be divided into online B2C, e-commerce platforms and online distribution. The overseas market is mainly sold on the Amazon platform through the "breo" brand. Products include foot massagers, eye massagers to relieve eye fatigue, and various portable massage products.

(Photo source: Amazon store)

According to the annual report released by Beurer, its revenue and profits in 2021 are both on the rise. Data shows that Beurer 's operating income in 2021 hit a record high in recent years, about 1.19 billion yuan, a year-on-year increase of 43.93%, and the net profit attributable to the parent company's shareholders also increased by 29.92% to 91.8618 million yuan.

On the other hand, although the revenue of Beurer in the first quarter of this year also increased year-on-year, its profit fell sharply. Its revenue in the first quarter was about 248 million yuan, an increase of 15.29%, but the net profit attributable to shareholders of the listed company fell by 188.84%, resulting in a loss of nearly 9.89 million yuan.

From the perspective of product lines, Beurer's revenue mainly comes from smart portable massagers, with sales of approximately 1.128 billion yuan, accounting for 94.93% of its main revenue , a year-on-year increase of 36.73%.

Among them, smart portable eye massagers had the highest sales volume in 2021, reaching 821,000 units, a year-on-year increase of 17.98%. Sales of other neck and head massagers also showed an increase, but sales of scalp massagers declined slightly, down 2.37%.

In terms of revenue growth this time, the growth of revenue from online sales channels performed outstandingly.

During the epidemic, offline store operations were restricted. Beurer increased its layout in the e-commerce field. Its online revenue increased from 431 million yuan in 2020 to 683 million yuan. Online revenue accounted for more than half of its main revenue, reaching 57.5%. Among them, B2C e-commerce platforms such as Amazon grew significantly and became the main source of online revenue.

Marketing is also an important factor in the development of Breo. In order to further enhance its brand influence, Breo uses KOL live broadcasts, brand collaborations, and celebrity endorsements to promote the company's marketing. For example, it cooperated with Tonino Lamborghini to set up "Tonino Lamborghini × breo" image stores in high-end shopping malls, using high-end well-known brands to promote the brand overseas.

In addition, Beurer has also increased its promotion efforts on new media and short video channels. With high product exposure, it has provided various preferential measures to increase consumer interaction and purchase rate. The two-pronged approach of product and marketing has enabled Beurer to become more competitive in the market.

Behind the growth of Beurer's revenue performance, we can get a glimpse of the development trend of the entire industry. With the prevalence of home fever and health concepts, the portable massage equipment industry in which Beurer is located is ushering in a bonus period. However, the problem of product homogeneity is currently the main problem facing the industry.

Category innovation has become a "weapon", but R&D investment is insufficient

In this regard, Beurer also has its own response strategy. Relying on category innovation and product iteration and upgrading, the company continues to bring products to the market at the fastest speed. With its efficient category promotion capabilities, Beurer's new product revenue in 2021 reached 237 million yuan , accounting for 19.89% of the company's main business revenue , and the profitability of new products is obvious .

This is indeed the case from the new products launched by the company in 2021. In the third quarter of 2021, the new category Jiang Xiaozhu Smart Open Flame Moxibustion Box launched by Beurer received a good response from the market once it was promoted. Subsequently, the company took advantage of the opportunity to launch moxibustion eye masks and moxibustion socks products in the fourth quarter of the same year, and the moxibustion product series. In 2021, the sales of Beurer's moxibustion series products reached 60.25 million yuan, accounting for 5.07% of the company's main business income.

It is understood that the company currently has 9 projects under development, including iterative upgrades of mechanical kneading eye massagers, smart health detection projects, etc. In 2021, Beurer added a total of 96 domestic and foreign patents, including 7 domestic invention patents and 8 foreign invention patents.

Recently, Beurer 's main products, Dream 6 head massager and Neck C2 neck massager, won the world's most authoritative international design award "iF Product Design Award" for their eye-catching design and outstanding performance.

However, the industry has doubts about the company's R&D capabilities, believing that it "focuses on sales and neglects R&D." According to the financial report data, Beurer's R&D investment in 2021 totaled 47.2 million, a year-on-year increase of 27.96%. Compared with the other data mentioned above, there is indeed a lot of room for improvement in R&D .

Although Beurer is not as generous as the leading sellers in the cross-border industry in terms of R&D investment , the company has accumulated many years of experience in new product development in the same market competition and still holds a leading position in R&D.

In the financial report, Beurer also stated that the company will continue to develop new products and improve product differentiation. Undoubtedly, products with novelty and high performance will be more attractive to consumers and will have the potential to gain a foothold in the homogenized market.

The company's Dream 6 head massager, Jiang Xiaozhu smart open flame moxibustion box, See X2 Pro eye massager and other products have won by differentiation. While driving by category innovation, expanding the audience and focusing on user pain points are also a major reason for the growth of BeLongsong's performance.

In addition to the post-80s generation, Beurer's products are also sold to the post-90s generation. Due to the pressure of work and study, and the lack of time for exercise, the post-90s generation has a stronger awareness of health. This trend of younger audiences provides a larger market space for the company to expand its product categories, and also provides a new direction for product research and development, so that the category matrix can be continuously improved.

In fact, it is not just BeLongsong. Judging from the financial reports released by major companies recently, increasing product research and development innovation has become a "rigid need". Under this trend, if sellers want to break through their existing shackles, they can only devote themselves to research and development innovation and directly meet new consumer needs.

Amazon

Annual Sales

Big Sell