Behind the financial report numbers of Haier Smart Home is the satisfaction of global users
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In 2023, when the home appliance market is recovering, Haier Smart Home delivered a financial report with both revenue and profit reaching new highs.
On the evening of March 27, Haier Smart Home released its 2023 annual report. The financial report shows that last year it achieved revenue of 261.428 billion yuan, a year-on-year increase of 7.33%; operating profit of 16.921 billion yuan, a year-on-year increase of 15.8%; net profit attributable to the parent company 16.597 billion yuan, a year-on-year increase of 12.81%; net cash flow generated from operating activities was 25.262 billion yuan, a year-on-year increase of 24.71%.
Affected by the solid financial performance, Haier Smart Home’s share price rose rapidly and became the leading stock driving the sector’s rise. As of the market close on March 28, Haier Smart Home’s A shares rose 5.47%, with the highest intraday increase of 6.81% reaching 25.40 yuan; H shares rose 8.22%, with the highest intraday increase of 8.67% reaching 24.45 yuan. The increase was the highest in the industry.
Although the financial report is the most intuitive report card that shows the operating level of a company, for Haier Smart Home, it is not just a financial report, because behind the growth of each number is the good life of global users.
01 Accurately overcome the pain points of overseas users
On overseas social platforms, you can see the experiences of users from all over the world using Haier Smart Home products. Some users from Dubai marveled that Haier has an air conditioner that only needs to be installed with four solar panels to operate; in Nigeria, some users shared how to use Haier’s sandwich machine to make a delicious breakfast; in the UK, some users shared how to use it The steps for a Haier washing machine, “The steps are so simple,” the user commented.
As a Chinese home appliance brand that goes overseas with its own brand, it is not easy to make users around the world have a satisfactory experience with Haier Smart Home.
After sorting out the overseas markets of Haier Smart Home, “City Circle” found that its core ability to capture the minds of users in overseas markets lies in meeting the differentiated needs of users in different regions, gaining insight into users’ pain points, and then accurately solving them one by one.
For example, in the U.S. market where high-end home appliance brands compete, GE Appliances, a subsidiary of Haier Smart Home, sells the Combo washer-dryer. The advantage of this product is that it can complete the dual functions of washing and drying within two hours, allowing Kuai to focus on weekends. American families have a more efficient experience in washing and caring, which has also allowed Haier Smart Home’s market share of large-loading washing machines to soar from 4% to 19%.
In the European market, Haier Smart Home adopts a different approach. The EU’s environmental protection and energy-saving standards are globally recognized as stringent, and users’ usage habits of electrical appliances are also mainly environmentally friendly and energy-saving. Based on this demand, Haier Smart Home has launched a washing machine called X11, which is 50 times more energy-saving than the EU Class A standard. %, the price index of the washing machine exceeded 275 after it was launched in Poland.
In Southeast Asia, user needs are obviously different. In the hot and rainy Southeast Asia, the biggest headache for local users is the mold problem caused by the rainy season. Due to the hot climate and almost non-stop air conditioning all year round, nearly 80% of local users regularly hire professionals to deep clean their evaporators, which costs thousands of yuan every year. The “bath-capable” air conditioner independently developed by Haier Smart Home has a self-cleaning function, which solves the problem of high cleaning costs and saves users a lot of money.
The segmented needs of more and more users around the world are being continuously explored. In Saudi Arabia, where users wear headscarves and robes, Haier Smart Home has developed a super-large drum washing machine with a large robe washing program; in order to solve the problem of high electricity bills in Egypt, Haier Smart Home has launched a fast cooling machine air conditioner; in order to cater to the habit of users in the European market who like to frequently open the refrigerator door, Haier Smart Home also added a drawer-style design to the refrigerator to facilitate users to access ingredients.
“Wherever we go, we adapt to the local living environment through localization.” Under the “trinity” strategy of localized R&D, localized manufacturing and localized marketing, Haier Smart Home has blossomed in many overseas markets. According to its financial report data, in 2023, Haier Smart Home’s revenue in the North American market will be 79.751 billion yuan, a year-on-year increase of 4.1%; the revenue in Europe will be 28.544 billion yuan, a year-on-year increase of 23.9%; the revenue in the Southeast Asian market will be 5.780 billion yuan, a year-on-year increase of 4.1%. An increase of 11.6%.
Overall, despite a series of challenging external environments such as global inflation and the Federal Reserve’s interest rate hikes, Haier Smart Home’s overseas market revenue has achieved growth that is better than that of the industry. In 2023, Haier Smart Home achieved overseas revenue of 136.412 billion yuan, a year-on-year increase of 7.62%.
02 The domestic market has more room for imagination
During last year’s unusually hot summer, the domestic air conditioning industry heated up rapidly. According to data from AVC, the retail volume of the air-conditioning market in 2023 will increase by 6.5% year-on-year, breaking the previous record of three consecutive years of decline. From 2020 to 2022, the sales volume of the domestic air-conditioning retail market will decrease by 13.2%, 3.7% and 3.3%.
For Haier Smart Home, the performance of the air-conditioning business in 2023 is remarkable. The financial report shows that Haier Smart Home’s air-conditioning business increased both revenue and profits, with profit margins increasing by 1.4 percentage points. But compared with Midea Group, whose main business is air conditioning, there is still a certain gap: Midea Group’s HVAC business revenue in 2023 is 161.1 billion yuan, accounting for more than 43% of total revenue.
In addition to the air-conditioning business with good growth momentum and potential, Haier Smart Home’s broader reach comes from the high-end market. According to GfK’s 2023 retail monitoring data, the retail sales of refrigerators above 10,000 yuan accounted for 38%, and the retail sales of washing machines above 10,000 yuan accounted for 13.8%. This shows that there is still market space that needs to be tapped in the high-end home appliance market. The high-end home appliance market brand represented by Casarte is also attracting more and more attention from users. “Casarte is synonymous with high-end,” said a user on Xiaohongshu.
Based on the attention and recognition of users, Casarte has ranked first in the high-end market for eight consecutive years, and ranks first in the high-end market in multiple categories: the offline market share of refrigerators above 15,000 yuan is 50%, and the offline market share of washing machines above 10,000 yuan The offline market share is 84%, and the offline market share of air conditioners priced above 15,000 yuan is 28%.
What’s even more imaginative is that Haier Smart Home’s smart home scene brand Triwing Bird is accelerating its monetization. The financial report shows that in 2023, the retail sales of Sanyiniao stores will increase by 84% year-on-year, with complete sets accounting for more than 60%, and scene transaction volume exceeding 5.1 billion.
In addition, Haier Smart Home, which has continued to make efforts in digital transformation in the past two years, has gradually seen the effect of rate optimization: in the past 8 financial reports in the past two years, Haier Smart Home’s rate has continued to be optimized. As digital transformation deepens, its rates will continue to be optimized.
It can be seen that the continuous release of potential and continuous overseas growth together constitute the steady growth figures in Haier Smart Home’s financial report. This is actually inseparable from his insistence on global independent brand creation, high-end brand creation, and continuous investment in smart homes. This allows Haier Smart Home to accurately grasp the needs of global users and become the choice of users.
In addition, Haier Smart Home also attaches great importance to the interests of shareholders. Not only will it increase the dividend ratio to 45% in 2023, but the dividend ratio in 2025 and 2026 will not be less than 50%, which also demonstrates the management’s confidence in future development. Industry insiders say that when looking at Haier Smart Home, one should not only look at the current situation, but also look forward to it in the medium and long term.
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