every AI newsletter, on January 12, 2024, orient securities issued a research report to review the home appliance industry.

Core view

Tik Tok Shop in the United States has just started, and domestic household appliance enterprises have gradually deployed and operated. Since September 23, Tik Tok Shop has been launched in the United States, providing a new channel for Chinese household appliance enterprises to go to sea. However, Tik Tok Shop of various household appliance brands in the United States is still in its infancy. The new channel is still in a blue ocean state. By comparing the operation of different regions, categories and brands, we find that domestic small home appliance enterprises are gradually making efforts to lay out, and are expected to enjoy new channel dividends in the future.

from a geographical point of view, since Tik Tok e-commerce has just started in the United States and has been operating in Southeast Asia for a long time and has a time advantage, the number of fans and videos accumulated by domestic household appliance enterprises in Southeast Asia is higher than that in the United States, and most of the stores have been opened in Southeast Asian countries. However, with the launch of Tik Tok Shop in the United States, the number of Tik Tok shops opened in the United States is expected to increase in the future.

From a category point of view, cleaning appliance companies in the U.S. are more active in operating and utilizing the new Tik Tok Shop channel. Stone Technology, Search, Tim can all open stores and sell in Tik Tok in the United States, small home appliance operation strategy is also following, gradually pay attention to the new channel to bring dividends. However, domestic large household appliances are restricted by category, transportation and installation. Tik Tok Shop is still on the sidelines and no shops have been opened for the time being.

from the perspective of domestic and foreign brands, domestic brands have more experience in Tik Tok operation after experiencing a high degree of involution of live e-commerce, and have made faster response to new channels after launching Tik Tok Shop in the United States. The best of these is Anker Innovation and Vesync, a domestic company that has long been deep in the U.S. market. On the one hand, the two companies have been close to American consumers for a long time, understanding local consumption habits and marketing preferences, on the other hand, they can learn a lot of experience in the operation of Douyin e-commerce in China. However, overseas brands are generally slow to respond to changes in new channels. Even though Dyson has a category combination that is more dominant in live e-commerce, it has not yet opened stores to convert category and brand advantages into sales. Overseas brands lack experience in live e-commerce operations compared to domestic brands, and Tik Tok is still used as an advertising platform.

Investment advice and investment target

the United States is the world's largest overseas market for household appliances. since its listing in September last year, Tik Tok Shop has provided a new channel for domestic household appliances to go to sea. by combing the performance of various products since the launch of the mall, we find that Tik Tok Shop in the United States is still a blue ocean, and there is still room for improvement in the number of official brands, store sales, SKU and other key indicators. On the one hand, domestic brands have experienced the development of tremolo e-commerce in mainland China and Southeast Asia and have more experience. They can copy their operation modes overseas. For example, Bear Electric and Stone Technology are gradually trying to put into operation e-commerce in Tik Tok US. Cobos is also expected to convert the long-term accumulated high number of fans into turnover. On the other hand, overseas brands are slow to respond to changes in new channels and have no stores, for domestic brands to make a huge market dividend. From the category point of view, clean appliances are more active in response to channel changes. It is suggested to pay attention to Cobos (603486, buy), Stone Technology (688169, buy), Anke Innovation (300866, unrated), Bear Electric (002959, increased), Jiuyang Stock (002242, increased), Beiding Stock (300824, increased), and Beiwei (688793, unrated) in the massage.

Risk Alert

Overseas consumption sluggish; policy regulatory risk; exchange rate volatility risk

(Source: Huibo Investment Research)

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Operate accordingly at your own risk.

(edited by Zeng Jianhui)