Concerned about vacuum cleaners, from the beginning of 2017, Dyson has just become popular around the world. Handheld wireless vacuum cleaners have redefine the whole industry. Vacuum cleaners are no longer a huge thing with long wires and bloated dustbins. They become a slim portable dust removal for the waist. Artifact. When "Dyson Hot" was blown all over China, there was a brand hero in the Chinese market, that is, Dake Electric, who dared to compete with Dyson, from product design to pricing, almost all with Dyson.

The core competitiveness of Lake Electric is high-speed micro-motors. The main business is OEM. The products involve vacuum cleaners, air purifiers, water dispensers, garden tools, etc. They also sell motors directly to the outside world. The motors are used in a wide range of applications, even for auto parts. From this perspective, Lake is not like a brand appliance company, it is like a home appliance parts company. However, the gross profit margin of the brand is very high, which also tempts Laker to transform from manufacturing companies to home appliance brands.

So with "LEXY Lake", "Jimmy Lake Jimmy", "Bewinch Biyunquan" and other brands, and Dyson's benchmark, but, unfortunately, brand building and manufacturing are two different things, from the past five years From the data point of view, Lake Electric has never had an effective breakthrough in its own brand management. The proportion of foreign OEM income has dropped from 82% in 2015 to 67% in 2018. It still accounts for the bulk, and the company has changed its independence from 2018. The brand building strategy has designated this year as “a year of major strategic adjustments in the company's development history” and vigorously carried out cooperation with domestic network home appliance brand customers to promote the development of domestic household appliances ODM business.

Since both domestic and foreign countries have begun to promote ODM business, the situation of their own brands is rather embarrassing, which is equivalent to the formation of internal competition. From the operational data point of view, in 2015-2017, the company's operating cash flow situation gradually deteriorated, and the receivables and inventories increased significantly. From 2018, the operating cash flow began to improve, and the inventory also gradually declined. It seems that the business strategy has changed. Acted.

Perhaps, in August 2017, when the board of directors reviewed and approved the proposal to issue convertible bonds, the management is still ambitiously contemplating the development of its own brand and raising funds for it. After experiencing the difficulties of self-owned brand construction in 2017-2018, changes in the export environment, and the success of the Xiaomi model, the company finally made a stern decision between ODM and its own brand. On February 13, 2019, convertible bonds After the termination of the issuance, the company re-entered the old road of ODM, doing manufacturing production, is the company's old line, does not need to spend so much money, the book money is rich.

Therefore, we have seen the current Lake. As of the middle of 2019, there are 1.8 billion cash assets on the books, no interest-bearing liabilities, self-sufficiency in the main business funds, no investment from the main business, and an annual output of 30 million household appliances. The production capacity of motors, 2 million car motors and 18 million home cleaning and health appliances, and investment in Vietnam and Thailand. It seems that in the field of high-speed micro-motors and related vacuum cleaners and air purifiers, Lake can be the first to produce, is a very good manufacturing company, but if you look at brand management, it is not an excellent home appliance company.

From the perspective of gross profit margin, Lake's comprehensive gross profit margin is only 25%, and the sales expense ratio is as low as 7%. This is the data of a typical manufacturing company. For the brand management of new appliances such as vacuum cleaners and air purifiers, the gross profit margin. And the sales rate is not so low.

Lake's overseas income in 2008 was 3.877 billion, and its gross profit margin was 17.73%. It is basically ODM business; domestic income is 1.925 billion, and gross profit margin is 40.14%. A large part of it is self-owned brand. In fact, the domestic market share is not smaller than that of foreign countries. Assuming that the domestic market can reach nearly 3 billion yuan in the future, the comprehensive gross profit margin at home and abroad can reach 25%. After deducting the 15% period expense rate and income tax, it is estimated that Lake's annual profit is about 600 million. .

When Lake Electric came to the forefront of the vacuum cleaner brand market, sweeping robots sprang up. This sleek little guy moves around and can sweep the floor without anyone involved. Although the dust removal effect is not as good as the vacuum cleaner, the sweeping robot is very suitable for the urban white-collar workers who are lazy and love clean style. They are quickly penetrated through online channels, and the well-known brand is called “Millet”. However, the millet sweeping robot and the eco-chain enterprise stone technology behind it can only be said to be the challenger of the sweeping robot industry. The real leading company is Cobos, a sweeping robot company that is not inferior in the world.

Cobos' business is mainly divided into service robots and clean small appliances. The service robots are mainly based on the "Kavos" brand of sweeping robots. They have good sales in domestic and foreign markets, and there are a small number of foundry businesses; Home appliances are mainly for external OEMs, and at the same time, they are sold at home and abroad with the brand “Tianke”, which accounts for a relatively small proportion. In addition, there are a small number of motors and accessories business.

From the perspective of sweeping robot industry, the company is mainly engaged in independent brand management, and the main market is in China. Although the annual report claims that it has sales in Europe and America, the domestic market accounts for about 80% of the total, and with its foreign OEM cleaning business. Since the sharp increase in 2017, the company's independent brand strategy positioning in overseas markets may not be so determined. After all, in the face of overseas markets facing the international giant iRobot and local companies, there is no advantage.

In the domestic sweeping robot market, the pattern is clearer. The online channel is the main battlefield, especially the double eleven and double twelve. Once Cobos occupied 45%-50% market share, iRobot occupied about 15% market. Share, but with the rapid rise of millet and stone, as well as the integration of Haier, Midea and other integrated home appliance companies, by 2018, Cobos' market share has shrunk to 35%-40%, and millet and stone join hands to divide 20 With a market share of %-25%, iRobot's market share has fallen by 5% and is surpassed by Haier.

From the perspective of product production, the threshold of sweeping robots is not high. It is not difficult for comprehensive home appliance companies to cross, and there are many foundries. Even the stone technology that focuses on sweeping robots is also produced by foundry manufacturers. Therefore, sweeping robots The future of the industry is still the cost and management. From the perspective of industry forecast, regardless of the economic cycle factor, the 20% compound growth rate is the current consensus. In the growth rate, each company may return the mean, and Cobos is no exception.

According to the annual report data, Cobos sales of its own brand sweepers in the year of 2018 is about 3.367 billion, ODM foundry revenue is about 498 million, its own brand is predicted by 20% growth, 2019 revenue is 4 billion, its 2019 The semi-annual report disclosed that the “own-brand service robot” should be closed to 1.638 billion yuan. In the second half of the year, the double-eleven and double-double efforts will be almost completed. But the semi-annual report also said that the company strategically cuts ODM business, so the "service robot ODM" revenue is only 309 million, assuming that there are 0.8 billion in the whole year, then Cobos's 2019 sweeping robot revenue is about 4.08 billion.

From the perspective of clean small household appliances industry, the company is mainly based on OEM, and the OEM customers are more concentrated. The sales revenue of Euproo and Chuangke Industry accounts for more than 30%. In the vacuum cleaner OEM export, Lake Electric ranks First, Cobos ranked 6th in 2015 and 4th in 2016. Because this market is greatly affected by foreign economic fluctuations, it has strong periodicity and is not predictable. From the data of Covos' ODM business of cleaning small household appliances in recent years, the year-on-year growth rates of 2016, 2017, 2018, and 2019H1 are 7.54%, 19.47%, 3.19%, and -13.87%, respectively, and the growth rate has stagnated since 2018. . Assuming that the current income level can be maintained in the future, it is almost 1.5 to 1.6 billion. In addition, the company's self-operated brand clean small household appliances performed well, due to the main cost-effective, and the base is low, the growth rate is rapid, according to the 2019 semi-annual report data of 96 million revenue speculation, 2019 can have 200 million income. In this way, Cobos has a revenue of about 1.65 billion in 2019.

Cobos' overall business operation, capital turnover has been deteriorating in recent years, mainly due to high inventory, inventory increased in 2018, the first half of 2019 has not been eliminated, the company's explanation is due to Sino-US trade friction Overseas market stocking. At present, the existing book capital can only cover the funding gap of the main business operation, and the right to speak on the company is still relatively strong. If the inventory cannot be effectively de-stocked or paid in time, the company's overall cash will be tighter.

In the first half of 2019, the company also increased its borrowing by 100 million yuan, mainly due to the increase in short-term credit loans. The specific reasons did not explain that it may be related to the worsening main business.

From the perspective of main business operations, it is temporarily considered that its existing asset-liability structure can meet future sustainable operations without increasing interest-bearing liabilities, and non-main business investment maintains the existing reasonable scale and scope. The gross profit margin of sweeping robots is between 45% and 50%. In 2019, the projected revenue is 4.08 billion, which will maintain a growth rate of 20% in the future. The gross profit margin for cleaning small household appliances is around 17%, and the projected revenue for 2019 is 1.65 billion. The future growth rate is zero. Other businesses were neglected, and the period expense rate increased from 21% in 2014 to nearly 30% now. It can be seen that the industry competition is very fierce. Assuming that the competition in the future is slightly reduced, the company maintains a 26% period expense rate. Then, Cobos is a company with an annual profit of 620 million and a 15% growth rate in the future.

In summary, Lake Electric and Cobos, one in the choice of independent brand management and ODM foundry, one to the left, one to the right. There is no right or wrong in this choice. It is just that the current home appliance industry is no longer a simple domestic substitute for the US and Gree era to occupy the domestic market. It is not as difficult for the overseas market to enter the overseas market. With the internationalization of raw materials and foundry markets, Chinese companies are going out, and foreign companies have entered China to establish localization teams. Under the background of global market integration, domestic and foreign companies seem to be on the same starting line. Either do a good job in production design, or do a good brand operation, the world's home appliance market is very big, and both can be safe.