Sales of nearly 5 billion yuan a year! The performance of the "Internet celebrity" small appliance company soared

In recent years, the prevalence of the stay-at-home economy has led to a surge in demand for small household appliances around the world.

At present, small household appliances have become an important export category for China's cross-border e-commerce.

Many cross-border companies have seized market opportunities, experienced rapid sales growth, and become leading brands in their categories.

Starting out as a yogurt machine, Bear Electric Appliances’ performance has doubled!

Recently, Bear Electric Appliances released its 2023 performance report.

According to the data, the company achieved operating income of approximately RMB 4.703 billion in 2023, an increase of 14.22% compared with the same period last year. The company's operating profit was approximately RMB 471 million, a decrease of 3.25% compared with the same period last year. The company achieved a net profit attributable to the parent of approximately RMB 430 million, an increase of 11.20% year-on-year; and achieved a non-net profit of approximately RMB 364 million, an increase of 0.50% year-on-year.

Xiaoxiong Electric Appliances said that in 2023, the company will focus on mass and emerging categories to drive the company's revenue growth. At the same time, the company is constantly optimizing the layout of marketing channels, improving operational efficiency, and increasing management changes and digital investment. With the help of multiple factors, the company's net profit attributable to shareholders will grow steadily in 2023.

Bear Electric Appliances Co., Ltd. (hereinafter referred to as Bear Electric Appliances) was established in Foshan, Guangdong in March 2006. The company specializes in the research and development, design, production and sales of creative small household appliances, specifically kitchen appliances, household appliances and other small household appliances.

When the company was first established, Bear Electric entered the market with yogurt machines.

At that time, most yogurt machines were produced abroad and were relatively expensive, and the target group was also high-end consumers.

Therefore, Bear Electric developed a yogurt machine that can make healthy yogurt at home. In addition to making yogurt, this machine can also make natto, rice wine and kimchi, making it a multi-purpose machine. What is very important is that the price of this product is more affordable than similar products abroad. It is also small in size and easy to clean, which hits the needs of consumers.

Subsequently, Bear Electric Appliances received small orders one after another and slowly entered the market.

The company's first business growth opportunity was receiving an order for 100,000 yogurt machines from the microwave oven manufacturer "Galanz", which made Bear Electric's yogurt machine products well-known among consumers.

After the success of the yogurt machine, Bear Electric began to strengthen its own brand and divested its OEM business. At the same time, it began to develop new categories and launched niche products such as bean sprout machines, egg cookers, and electric lunch boxes.

It is worth noting that a very important reason why Bear Electric Appliances' performance can grow rapidly is that the company entered the e-commerce channel in a timely manner.

Since 2008, Bear Electric Appliances has started authorized online sales, becoming one of the earliest home appliance brands to enter Taobao. At that time, e-commerce was not yet valued by the retail industry, and "online authorized distribution" allowed Bear Electric Appliances to quickly gather high-quality distributors and reap the dividends brought by the rapid expansion of e-commerce.

From 2007 to 2009, Bear Electric Appliances' sales grew at an average rate of more than 100%.

In 2007, Bear Electric Appliances' annual revenue was only about 20 million yuan, which doubled to more than 80 million yuan in 2009.

By 2016, Bear Electric's annual revenue had exceeded 1 billion yuan. Two years later, Bear Electric's online sales revenue exceeded 1.8 billion yuan, and the total revenue for the year reached 2.041 billion yuan.

Today, Bear Electric Appliances’ annual revenue has increased from 2.041 billion yuan to 4.703 billion yuan, doubling again.

Currently, Bear Electric Appliances ranks first in the small kitchen appliance market, second only to the three traditional home appliance manufacturers: Midea, Supor and Joyoung.

In the past, Bear Electric Appliances' overseas business was mainly based on ODM outsourcing, but now it is mainly focused on its own brand overseas and cross-border e-commerce business. The sales areas of its own brand overseas are mainly concentrated in Southeast Asia and the Chinese markets in Europe and the United States. Some countries in the Southeast Asian market are already aware of the Bear brand, and the promotion efforts will be intensified in the future.

In early February 2024, Bear Electric Appliances established Foshan Bear Yousetuo Cross-border E-commerce Co., Ltd. and Foshan Bear Cross-border E-commerce Co., Ltd., with a registered capital of 1 million yuan each, focusing on cross-border e-commerce business.

It is worth mentioning that in September 2019, Bear Electric Appliances officially landed on the Shenzhen Stock Exchange with the halo of "the first stock of creative small home appliances". After listing, the company's market value soared.

In July 2020, the market value of Bear Electric Appliances once exceeded 25 billion yuan, and its market value increased nearly four times in less than a year after its listing.

Bear Electric Appliances increases investment in research and development to precisely meet the needs of consumer groups!

The success of Bear Electric Appliances is inseparable from its long-term investment in scientific research.

The small home appliance market is highly competitive, and product innovation is crucial. Therefore, Bear Electric has been continuously increasing its R&D investment.

From 2016 to 2020, Bear Electric Appliances' R&D expenses increased from 16.5333 million yuan to 105 million yuan, a 5.35-fold increase in five years.

In 2021 and 2022, Bear Electric Appliances' R&D expenses were 130 million yuan and 137 million yuan, respectively, also maintaining steady growth.

In the first three quarters of 2023, Bear Electric Appliances' R&D expenses reached 106 million yuan, a year-on-year increase of 11.74%.

Li Yifeng, the actual controller of Bear Electric Appliances, once said that Bear Electric Appliances has 10 research and development teams, and the number of new products developed has increased from 100 a year to 150, with an average of a new product launched in less than three days.

Over the years, Bear Electric has focused on product innovation to meet consumers' innovative needs. It has continuously launched new products for different scenarios, such as a one-person rice cooker suitable for single consumers, an outdoor power supply and outdoor fan suitable for outdoor camping, a multi-functional milk mixer suitable for mothers, and a cat water dispenser suitable for pets.

Bear Electric Appliances currently has more than 60 product categories and more than 500 product models.

(Picture source: Bear Electric Appliances official website)

Thanks to long-term R&D investment, Bear Electric has built a three-level R&D system and applied for more than 1,500 patents.

In addition to continuous efforts in technology, Bear Electric also pays great attention to product design. In order to attract young consumers and provide them with creative small household appliances, Bear Electric has formed a 10+ design team. Through in-depth cooperation with external parties and linking global design resources, Bear Electric innovates product design based on consumers' pain points. In response to the segmented needs of young people, Bear Electric integrates product aesthetics, functions, and experience, making the products more compact and easier to use.

In recent years, the size of the global small household appliances market has grown rapidly.

According to Euromonitor data, the global small home appliance market is expected to reach US$293.17 billion in 2026. Compared with large home appliances, the small home appliance industry has multiple advantages, such as low investment and fast growth, which is very suitable for sellers who want to open up new tracks.

In the future, driven by continued high demand, overseas small home appliance brands including Bear Electric Appliances will also have more market opportunities.

Bear Electric

Performance growth