Core ideas:

After the outbreak of the epidemic at home and abroad in 2020, the performance of many enterprises has declined.

However, Aojiahua, as a health industry company specializing in massage products, seized the development opportunity in the epidemic era and successfully bucked the trend in 2020.

There are many factors in the growth of the company. On the one hand, China adjusts its marketing strategy to explore mid-and low-end brands in the mainland, reducing the dimension of products and sinking to third-and fourth-tier cities. On the other hand, the company steadily resumes its bulk business overseas, while insisting on developing its own brand, changing from an export-oriented enterprise to a brand-operating enterprise. In addition, driven by the epidemic and the company's early technology accumulation, the company's income from household medical and health environment products has grown rapidly, which has become an important growth point for its performance in 2020.

After 2021, the company focuses on the main business, and the health massage business grows steadily. In the field of massage products, because the company has a certain degree of advantages in products, brands and channels, the product technology is leading, the cost is properly controlled, the brand matrix is rich, and the channel feedback is fast, so it is difficult for other enterprises to catch up quickly.

Aojiahua's current profit growth is mainly faced with two problems-raw materials, rising shipping prices and high sales costs. The rise in raw materials and shipping prices is a major challenge for the whole industry, and it is difficult for prices to return to the normal level before the epidemic in the short term, and the company's gross profit will continue to be under pressure. The excessively high sales cost is caused by the development of more direct stores and brand marketing in Aojiahua. At present, the company has begun to control advertising costs, offline store expansion to distribution stores as the main direction, and the proportion of sales expenses has gradually declined in 2021.

In the long-term development in the future, the company insists on deepening and promoting the core main business, steadily turning the company from a processing enterprise to an independent brand enterprise, relying on the multiple advantages of its own products, brands and channels, its leading position of massage products will continue to expand, and its income and profits are expected to increase steadily.