Tianfeng Securities has released research reports stating that China's household cleaning market has vast space, and the high-end market is seeing opportunities.
Intelligent Finance APP learned that Tianfeng Securities has released research reports stating that China's household cleaning market has vast space, and the high-end market is seeing opportunities. In recent years, cleaning products have been continuously upgraded in terms of basic functions such as cleanliness, and have developed advanced functions such as mildness, safety, and fragrance. The firm believes that there is a growing willingness among consumers to pay for improving the user experience, and the penetration rate of high-end cleaning and care products is expected to increase. Therefore, we are bullish on the high-end household cleaning and care track and recommend focusing on Guangzhou Ruoyuchen Technology (003010.SZ) and others.
Tianfeng Securities' main points are as follows:
China's household cleaning market has vast space, and the high-end market is seeing opportunities. In recent years, cleaning products have been continuously upgraded in terms of basic functions such as cleanliness, and have developed advanced functions such as mildness, safety, and fragrance. We believe that there is a growing willingness among consumers to pay for improving the user experience, and the penetration rate of high-end cleaning and care products is expected to increase. Therefore, we are bullish on the high-end household cleaning and care track and recommend focusing on Guangzhou Ruoyuchen Technology and others.
According to Ai Media Consulting's data, China's household cleaning product market size reached 55.61 billion yuan in 2023 and is expected to reach 70.03 billion yuan by 2028. The firm believes that the household cleaning track market size is large with giants like Liby, P&G, and Blue Moon dominating the market, but the landscape is still fragmented and in need of restructuring. Zan Brand's prominent advantage lies in combining functionality and emotional value, with the brand story originating from New Zealand, emphasizing the "special care for special clothes" concept, combining natural plant extracts with cutting-edge technology to reshape the home cleaning experience to new heights. In terms of marketing and promotion, the brand will focus on fragrance, emphasizing the replication of the four seasons' blooming flowers, setting it apart significantly from market competitors.
Sales Channels:
High-end household cleaning brands have comprehensive online coverage on platforms such as Tmall, jd.com, Douyin, Xiaohongshu, and Youzan, among more than 20 e-commerce platforms. They are also offline in Sam’s Club, Hema, Huamei, KKV, and other high-quality offline sales channels, achieving simultaneous high growth through multiple channels.
Risk Warning: Macroeconomic fluctuations, intensified industry competition, channel structure risks, product promotion falling short of expectations, etc.