After paying the salary every month, Liu Luxi usually does two things after the 90s: the first is to pay the credit bill, and the second is to reward herself.
In this established part of “Reward yourself,” Liu Luxi also formulated a plan. In other words, the specific reward items are determined according to the remaining wages after repaying the loan each month. If there is more, do skin management. If less, simply buy a gift as a reward.
“I’m a typical moonlight (live from paycheck to paycheck) girl.” Liu Luxi said, “I’m tired enough at work. Isn’t the salary left alone?
This month, Liu Luxi changed a new carpet and bought two small household appliances: a dental flusher and a beautiful instrument. In her solitary home, all kinds of “net celebrity” small appliances can be seen everywhere: breakfast machine, air fryer, fascia gun, eye massager…
It can be said that Liu Luxi will never miss anything that can make her feel better. “To please others, please yourself first,” Liu Luxi often talked about this sentence.
Of course, Liu Luxi is not the only one who holds this concept. According to data released by Nielsen, 42% of single consumers consume for “pleasure.” You know, the total population of singles in China currently exceeds 240 million.
In the face of this new wave of consumption, capital has already heard the news. Nowadays, whether it is the concept of “food for one person” or the small home appliance circuit that “pleases oneself and high-value,” it has become a new outlet for capital to chase.
With continuous financing of 100 million yuan, the “net celebrity” small appliances set off a new round of capital feast.
Like Liu Luxi, a significant manifestation of young people’s “pleasing oneself” is the pursuit of refinement and happiness. Personal care appliances with high-value and robust design have become a new category that these 90 generations are vying for.
Take an electric toothbrush as an example. According to AVC online monitoring data, from January to October 2020, the online retail sales of electric toothbrushes will reach 5.83 billion yuan. According to data from JD.com’s National Day 2020, during the National Day 2020, the turnover of personal home appliances has increased by over 40%, and nano-water ion hairdryers and smart sonic shavers have become new favorites.
At the same time, capital is constantly flocking to this consumption boom. On March 8, 2021, the small home appliance brand “Zhibai”, which focuses on the personal care scene of actresses, announced that it has received 100 million yuan A round of financing, with Yida Capital leading the investment, and Jiujiu Capital and Yuanchuang Capital following the investment; August 2020, A small home appliance brand “Sushi” also announced that it has completed Pre-IPO financing of 175 million yuan. Kunzhong Capital, Honghui Capital, Yuanyi Capital, Hengxu Capital, Zheshang Innovation Capital, and Yunmu Capital have all placed bets. . This month ago, in July 2020, Delmar also received 380 million yuan financing from Cathay Capital, Jinyi Capital, and Fortune Caizhi.
Zhibai founder and CEO Yu Jinming told China Investment Network that in this financing, the company contacted about 30 institutions before and after, and finally chose Yida Capital as the lead investor. The financing process was very smooth.
Capital’s enthusiasm for this track is evident.
“Compared with large appliances, small appliances have obvious advantages in their repurchase cycle due to the frequency of use and the convenience of using functional machines. These small appliances have an irreplaceable position and function, either to improve the quality of life or to meet the needs of oneself.” Yu Jinming said.
According to Zhang Ruirui of Yida Capital, the personal attributes of the personal care small home appliance industry are relatively strong. In this field, on the one hand, the younger generation of consumer groups is rising. They are more concerned about the appearance, quality, and experience of technology; on the other hand, in response to this new consumer demand, the existing brand products are insufficiently innovative and cannot effectively fit young users’ preferences. Therefore, there must be some new brands born and risen on this track.
“All consumer products are worth doing again through intelligence.” Yao Haibo, the founding partner of Kunzhong Capital, said that many new consumer habits of the post-90s are also emerging with the iteration of consumer groups. Especially the oral revolution in personal care, its potential demand is continuously being released on a large scale.
Behind the pandemic of “pleasant consumption”: huge market capacity in the next five years
“Enjoy oneself consumption” has become one of the core keywords of Chinese consumption.
Behind this, in addition to the personalities of Generation Z and the consumption motivation of “dare to earn and spend,” it is also inseparable from an increasingly sizeable phenomenon-level consumption trend-the “single economy.”
According to the “China Singles Economic Report” released by Nielsen, 42% of single consumers consume for pleasure, much higher than the 27% of non-single consumers. Moreover, in first-tier cities, 40% of unmarried youths are moonlight people. As the town ranks down and monthly income decreases, the proportion of “moonlight” has increased significantly, and the balance of “moonlight” among single youths in fourth- and fifth-tier cities is as high as 76%.
“2020 Double Eleven Single Crowd Report” shows that singles born in the 90s are expected to spend 2341 yuan on Double Eleven, and over 50% will buy gifts for themselves.
It can be seen that the consumption power of singles is difficult to ignore in the matter of “please yourself.”
Yu Jinming said that whether it is “pleasant consumption” or “single economy”, its essence is the comprehensive factor of the fourth wave of China’s consumer market, including sustained economic growth and continuous consumption upgrades, improved quality of life, and personal consciousness awakening.
And behind such a consumption trend, there is undoubtedly a market with huge potential. Take the personal care industry as an example. An Essence Securities report shows that China’s personal care market grew to 458.7 billion yuan in 2019, far exceeding 305.8 billion yuan in 2015, with a compound annual growth rate of 10.7%. It is estimated that in 2024, the market size will grow to 701.4 billion yuan, with a compound annual growth rate of 8.9%.
“From the perspective of venture capital, the two new forces, Yueji consumption, and the single economy, have vigorous vitality, and they also have potential business opportunities. Especially as the post-95s gradually become the main force of market consumption, the entire consumption concept will be shifted and Upgrade.” Zhu Aimin, a partner of Yida Capital, said that he is firmly optimistic about the new forces driven by diversified consumer demand under China’s consumption upgrade.
On the long-distance race track, the industry battle has just begun
Although the market potential is enormous and the industry development is also showing a blowout trend, the struggle for “pleasant consumption” of protecting small home appliances has just begun.
Looking at the two new brands of Sousse and Zhibai, at present, in addition to the different hot items of their respective main products, the complete product lines of the two parties are the same, including hairdryers, hair straighteners, electric toothbrushes, tooth cleaners, etc. . Yu Jinming told Touzhong.com that straightforward future product expansion logic is that hairdressing is the first track. Oral care and facial care will be the second growth point.
And Sousse has launched a corresponding product line in the field of oral care. It is reported that Sousse’s next main category will be electric shavers, which also belong to the area of facial care.
This shows that with the deepening of the company’s development, the competition between the two sides in the future battlefield will become more intense.
“In the personal care home appliance track, players from all walks of life will follow the growth logic of concentric expansion after conquering the user’s mind with a strong single product. This is a long-distance race. In this process, who can make users continue? Whoever pays will stay.” Zhang Ruirui believes that it is still at an early stage from the perspective of the entire innovation cycle of small home appliances. The key to success in this market lies in the company’s product strength and continued excellent user reputation.
“If the company does not have continuous product iteration capabilities, even if there are some explosions, it may only be a short-term lead.” In Yao Haibo’s view, the final decisive point for the small home appliance circuit is the supply chain. Although the competition in this industry is far from reaching the end, given that the supply chain barriers of existing brands in the market are already very strong, the chances of belonging to new players are increasingly slim.
It is worth mentioning that, from the perspective of the entire home appliance industry, new brands of personal care small home appliances are also facing challenges from traditional home appliance giants. In this competitive sector, keeping the brand evergreen has become the core proposition for the new brand to break the game.
In Yu Jinming’s eyes, the “net celebrity” brand of small household appliances has three vital points in the market-innovation in function, a breakthrough in technology differentiation, and a sense of ritual in the use of scenes. “We are not an Internet celebrity brand, but a durable consumer brand that has rigid demands and enhances consumption.”