Focus on niche products! Ningbo sells well and doubles profits

The spring of niche products!

Popular mass products such as clothing and shoes have large traffic and strong demand, and are often the first choice of cross-border practitioners; in fact, niche products also have unlimited business opportunities due to their broad online development prospects. Ningbo Dama relies on the household water pump subcategory, and its profits soared in 2024. Many products are listed on e-commerce platforms such as Amazon and Walmart.

Focus on sub-categories! Ningbo's best-selling products are popular on Amazon, Walmart and other e-commerce platforms

Ningbo Junhe Co., Ltd. is a veteran player in the field of water pumps. Since its establishment in 2003, it has been focusing on the research and development, design, manufacturing and sales of household water pumps and their accessories. The main products include four series of more than 800 specifications and models of submersible pumps, garden pumps, fountain pumps and deep well pumps.

According to the "China General Machinery Pump Industry Yearbook" compiled by the Pump Industry Branch of the China General Machinery Industry Association, Junhe shares have been ranked at the forefront of the industry in terms of export delivery value in recent years, ranking first in the submersible electric pump segment , and is one of the leading domestic household water pump export companies. In 2023, the sales volume of submersible pumps reached 2.6217 million units.

Junhe shares' products are mainly sold to the international market, exported to Europe, America, Oceania and other regions, with exports accounting for more than 98%. As a strong support behind brand giants, Junhe shares has a long-term and close cooperative relationship with internationally renowned brand manufacturers such as Enhe, Karcher, OBI, Kingfisher, Andawood, and Franklin.

From behind the scenes to the front stage! In recent years, traditional foreign trade companies have embarked on the craze of cross-border e-commerce. Junhe Co., Ltd. is one of the typical and excellent representatives. It is currently conducting overseas online sales on Amazon and other e-commerce platforms through its own e-commerce brand "Lanchez".

With the advantages of many years of traditional foreign trade experience, Lanchez has gained strong support for its brand development and quickly gained popularity in overseas online markets. On the Amazon platform, Lanchez is well received by European and American consumers, with many products receiving over a thousand reviews, and some products even receiving the Amazon's Choice badge. On the Walmart platform, electric high-pressure cleaners, submersible pumps and other products have been successfully listed as Best Sellers.

The overseas market industry trend is positive, brand building is progressing steadily, and coupled with the continuous launch of new products and improvement of existing products, Junhe shares' profits will double in 2024. According to the performance forecast released earlier, Junhe shares expects to achieve a net profit attributable to shareholders of RMB 76 million to RMB 82 million in 2024, a year-on-year increase of 107.54% to 123.93%.

It is worth noting that in the past two years, Junhe Co., Ltd. has achieved positive results in the development of its own online brands such as Amazon . In 2023, its annual revenue was 19.9813 million yuan, a year-on-year increase of about 60%. Its revenue in the first half of 2024 was 12.1835 million yuan, a year-on-year increase of 38.54%. Considering that the second half of each year is the peak season for cross-border e-commerce sales, it can be predicted that Junhe Co., Ltd.'s overseas online revenue in 2024 will definitely increase significantly year-on-year.

The global market for water pumps is vast!

Behind Junhe Co., Ltd.'s rising revenue, the water pump market is continuing to grow.

According to statistics released by Zion Market Research and P&S Market Research: It is predicted that from 2018 to 2024, the global water pump market will grow at a rate of 5.29%, and the total size of the water pump market will reach US$66.51 billion by 2024.

A pump is a device for conveying fluid media. It is widely used in various sectors of the national economy such as household water supply and drainage, agricultural and forestry irrigation, industry, and municipal administration. It is an irreplaceable device in fluid devices. The most commonly used water pump products can be divided into large and medium-sized water pumps and small and micro water pumps according to the flow rate and head of the conveying medium. According to the field of use, they can be divided into industrial pumps and civil pumps. Large and medium-sized water pumps are mainly used for industrial purposes, while small and micro water pumps are mainly used in civil fields such as household and small agricultural irrigation.

As a household necessity, household water pumps are widely used in household water supply and drainage, sewage disposal, gardening and agricultural irrigation, home cleaning and beautification, etc. The penetration rate is very high. Consumers usually replace them every 1-2 years. New purchasing demand and replacement demand have led to continued growth in product sales, and market demand growth is relatively stable.

According to FMI analysis, the European water pump market will reach USD 12.7 billion in 2023. During the forecast period (2021-2031), the European water pump market is expected to expand at a compound annual growth rate of 3.6%. The high demand for garden water pumps for both indoor and outdoor use has led to a very high share of garden water pumps in Europe.

North America is also a high-demand market for water pumps. It is worth noting that North America is the largest market for swimming pool water pumps. Due to the hot climate in North America, residential and commercial swimming pools have a large demand for swimming pool pumps. Coupled with the increase in swimming enthusiasts, swimming pool infrastructure and sporting events, the North American water pump market is expected to continue to grow.

The water pump industry has seen the rise of players! A number of excellent and popular brands have emerged in my country

my country's domestic water pump industry is an export-oriented industry, with most products exported. Manufacturers are mainly distributed in East China, Central China and North China, with the highest concentration in Wenling, followed by Ningbo and Shanghai.

Wenling is known as "China's famous pump city", "China's small air compressor capital", and "China's small water pump, small air compressor, and small motor export base". It has become the main production base for various types of water pumps, air compressors, and vacuum pumps in China, gathering more than 3,000 pump and motor companies. In 2024, the annual output value of pumps and motors in Wenling is expected to exceed 70 billion yuan. Among them, the output of small water pumps accounts for more than 70% of the national market, and the international market share is as high as 20%, ranking first in the world.

The Jiangsu Water Pump Industry Belt, Shandong Water Pump Industry Belt and Liaoning Water Pump Industry Belt are also very well-known. Among them, the Jiangsu water pump industry has a rich variety of products, including centrifugal pumps, submersible pumps, vacuum pumps, metering pumps, high-pressure pumps and other types of water pump products that can meet the needs of different industries and fields.

In recent years, China's water pump exports have increased year by year, and its international market share has continued to increase. By 2023, China has become the world's largest producer and exporter of pump products, with an annual output of more than 120 million units, accounting for nearly 40% of the global market share.

There are a large number of water pump manufacturers in China. According to the National Bureau of Statistics, there are 7,889 enterprises above designated size in the general machinery industry in 2023, with total assets of 1,219.964 billion yuan by the end of 2023, a year-on-year increase of 8.19%. In 2023, the operating income was 1,021.722 billion yuan, a year-on-year increase of 4.28%; the total profit was 83.573 billion yuan, a year-on-year increase of 10.45%.

With the further development of the trend of industrial transfer in the mid-end manufacturing industry, a number of enterprises with independent R&D and design capabilities and product quality that can reach the certification level of Europe and the United States have emerged in my country, such as Leo Group, Zhejiang Dayuan Pump Industry, Guangdong Lingxiao Pump Industry, Taifu Pump Industry, Langxin Electric, Hanyu Group, Feilong Shares, etc.

The diversification and personalization of water pump market demand will surely lead to the emergence of more outstanding players.

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