The annual revenue of the best seller exceeds 400 million, and the niche blue ocean category is really attractive

In addition to indoor home furniture, outdoor leisure furniture also has a certain market size in Europe and the United States. There is a wide demand for outdoor places such as villas, hotels, and parks, but in comparison, there are relatively few domestic sellers involved in related categories. Among them, there is a low-key big seller Zhejiang Yayi Metal Technology Co., Ltd. (hereinafter referred to as Yayi Technology) that has been deeply involved in this field and has established a place in the European and American markets.

Annual revenue exceeds 400 million yuan, and Yayi Technology's overseas sales increase year by year

Yayi Technology's main business is the development, production and sales of outdoor leisure furniture such as outdoor fire bowls and gas stoves. Its main products include fire bowls and gas stove series. With years of experience accumulation, Yayi Technology's sales have also increased year by year. It was successfully listed at the end of last year.

Yayi Technology recently released its 2021 performance report. Its operating income in 2021 was 448 million yuan, a year-on-year increase of 39.7%. The net profit attributable to shareholders of the listed company was approximately 93.8 million yuan, an increase of 10.95% . Both sales and profits showed an upward trend year by year.

The brazier and stove industry belongs to a sub-segment of outdoor leisure furniture. The products require a high level of R&D and design capabilities from the company, so there are relatively few large-scale competitors. Relying on its own advantages, Yayi Technology has strong profitability and competitiveness in the European and American markets.

Yayi Technology's main sales area is the US market, with US sales accounting for more than 90% in the past two years . Currently, Yayi Technology's main customers are large retailers such as Walmart and Home Depot. The cooperation has lasted for more than ten years, and there is a relatively stable sales market.

However, this model is too dependent on the US market and is not conducive to long-term development. Based on the steady development of the US market, Yayi will actively expand into the European and Australian markets such as the UK, Germany, France, and Australia .

Yayi's cooperation model is currently mainly the ODM model, which is to independently design according to customer needs, that is, OEM sales, and has not yet established its own trademark brand. However, the transition from OEM to own brand is also the final destination of many such companies.

With the in-depth development of e-commerce in recent years, the types of various e-commerce platforms are also constantly expanding. Yayi Technology will also seize this opportunity to prepare for further expansion of emerging sales channels such as e-commerce.

To develop its own brand, Yayi Technology will focus on Amazon

Yayi Technology said that it will strive to build high-quality overseas sales channels at a relatively low cost through a combination of online and offline, self-operation and distribution. Building its own brand through third-party e-commerce platforms and direct sales networks is the next goal of Yayi Technology.

Yayi Technology mainly targets the US market, and Amazon is the mainstream e-commerce platform there. If Yayi Technology wants to penetrate the US e-commerce market, Amazon's traffic position is within its consideration. Yayi Technology said that in the future it will focus on the research and development of its own brands and gradually expand the brand's popularity on popular e-commerce platforms such as Amazon and AliExpress.

However, in terms of products, Yayi needs to differentiate itself from previous products and design a more novel, unique and stylish product line to promote the brand and enhance its competitiveness in the market, which puts higher demands on Yayi's innovation. Currently, Yayi Technology is not well-known, lacks the attraction of high-end technical talents, and has room for improvement in R&D capabilities.

In terms of sales, Yayi Technology also faces certain challenges. Large retailers such as Walmart enjoy high visibility and market share in the field, and Yayi faces serious obstacles in entering the market with its own brand. Moreover, with the continuous expansion of the scale of public business and the increase in order volume year by year, Yayi faces a situation where production capacity is in short supply.

As the market size expands, the "cake " of the outdoor furniture industry is getting bigger and bigger, and more and more people want to get a piece of it, which makes Yayi Technology quickly realize the "crisis".

In order to break this dilemma, Yayi Technology needs to work harder in expanding its product lines and enhancing its innovation capabilities.

"Strike while the iron is hot", Yayi Technology expands its product line

In order to maintain its leading position in the market and its sales advantage overseas, Yayi Technology continues to expand its product line, increase investment in R&D and talent, and strengthen the connectivity between R&D personnel and production personnel.

In the context of increasingly fierce market competition, a single product not only cannot meet market demand, but will also be in danger of being eliminated. In view of this, Yayi has developed a series of brazier products based on the needs of downstream customers since the beginning of 2005 and successfully opened up the US sales market.

In recent years, with the development of technology, Yayi has also developed a series of gas stove products, further expanding its product line. With the joint promotion of multiple series such as fire basins, fire basin tables, gas stoves, and gas stove tables, Yayi's sales channels have been broadened.

Behind the "success " of Yayi Technology's products , the strong team of innovative talents and R&D and innovation capabilities have contributed greatly.

Due to the high attention paid to innovative design, the styles of Yayi Technology's proofing and design library cover all kinds of its products in order to meet the diverse aesthetic and practical needs of the market. In addition, Yayi Technology has also made great efforts in product detail processing, grasping popular trends, analyzing market dynamics, etc., to ensure the speed of product updates and iterations.

It is understood that the R&D personnel of Yayi Technology also strengthen their aesthetic appreciation of industry products and grasp fashion trends by learning Western paintings and reading overseas furniture fashion magazines, which plays a significant role in product development and localization. In addition, the in-depth communication between R&D personnel and production personnel strengthens the connectivity between design and production and ensures the feasibility of design, which is also lacking in some companies at present.

In recent years, the outdoor furniture industry is in a period of warming up. Coupled with the gradual easing of the epidemic, outdoor leisure furniture has been widely used in various outdoor fields, including restaurants, parks, squares, etc., becoming one of the important branches of the development of the furniture industry. It is bursting with market vitality, and Europe and the United States are still the main markets for such products.

As the concept of leisure life and the pursuit of a better quality of life have become more popular, the categories of outdoor leisure furniture and supplies have also expanded. From the previous tables, chairs and benches to the current fire pots, swings, hammocks, etc., more and more outdoor products have opened up new market opportunities.

Compared with popular outdoor furniture products, niche products such as stoves and braziers in the sub-segment are still in the blue ocean market, and domestic sellers are less involved. In this environment, Yayi Technology has caught up with the "trend", but the subsequent transformation path also faces many challenges.

2021

Yayi Technology