According to the research report released by Founder Securities, during the 618 period in 2024, the sales of sweeping robots achieved 2.47 billion yuan with a sales volume of 680,000 units; while the price and quantity rose, the proportion of mid-to-high-end price ranges increased. In terms of brand distribution, Roborock (688169.SH) has steadily increased its market share, while Yunjing has achieved remarkable results through price-for-quantity strategy. In addition, the competition in the floor cleaning machine market remains intense with a further decline in prices. The team is bullish on the cleaning appliance sector. After the domestic sales promotion of sweeping robots based on low prices, followed by high-end product penetration, a new round of product promotion and price increase is underway, with a high market concentration. Exporting promotion also continues, with both price and quantity rising.
The sales volume and price of sweeping robots both increased during the 2024 618 period. Sales volume achieved 24.7 billion yuan, a YoY increase of 10%, with 680,000 units sold, a YoY increase of 6%. The average price was 3611 yuan, up 3% YoY. The sales volume of the 3000-3500 yuan range of sweeping robots accounted for the highest proportion during the 618 period and significantly increased compared to the same period of last year as well as the Double Eleven event last year with growth rates of 8% and 14%, respectively. The main reason was the promotional activities of the T30 PRO and J4 models launched by Ecovacs Robotics and Yunjing, respectively, both of which were positioned in this price range and accounted for 38% and 41% of the sales in this price range.
As for brand distribution, Roborock steadily increased its market share, while Yunjing achieved remarkable results through price-for-quantity strategy. During the 618 period, Roborock/Ecovacs Robotics/Yunjing/Zhuimi sales revenue accounted for 29%/23%/18%/18%, respectively, with YoY changes of +0.4%/-13.4%/+6.7%/+4.5%, and changes from the 2023 Double Eleven event of +4/-10/+4/+2pcts, with Roborock surpassing Ecovacs Robotics to occupy the top of the sales revenue market share. In terms of sales revenue, Roborock/Ecovacs Robotics/Yunjing/Zhuimi achieved sales revenue of 710/570/440/440 million yuan, respectively, with YoY changes of +11%/-31%/+75%/+47%. The sales volume was 170/155/117/94 thousand units with YoY changes of +7%/-29%/+79%/+53%, and the average price was 4191/3657/3790/4614 yuan with YoY changes of +4%/-2%/-2%/-4%.
From the perspective of SKU, during the 2024 618 period, the sales of top-selling products were as follows: Yunjing's sales volume in the below 3500 yuan price range significantly increased YoY, and Ecovacs Robotics also enjoyed a 4pct increase. In terms of key products, J4 and T30 PRO are upgraded versions of J3 and T20 PRO in the 3500-4000 yuan price range with improvements in suction, clean system, intelligence, navigation and obstacle avoidance, as well as battery life, while the price dropped significantly. Roborock focused on the 3500+ price range, from the P10 in 2023 to the P10S PRO in 2024, successfully upgrading the product to the mid-to-high-end market of 3500-4500 yuan by significantly improving product performance (such as upgraded double-roller brush, powerful floor mopping system and latest LIDAR navigation technology). Through effective sales strategies and market feedback, Roborock significantly increased its market share in this price range during the 618 period, achieving both sales volume and price increases.
The competition for floor cleaning machines remains intense with a further decline in prices. Under the relatively high base of the 2023 618 period, the sales revenue of floor cleaning machines during the 2024 618 period was 1.31 billion yuan, down 14% YoY, with sales volume of 590,000 units, a YoY increase of 2%, and an average price of 2198 yuan, down 16% YoY with an 8% price drop compared to the 2023 Double Eleven event. The sales volume of the 2500-3000 yuan price range floor cleaning machines accounted for the highest proportion during the 618 period with a YoY increase of 5%. The sales volume of the 3000+ yuan price range decreased, with a combined decrease of 17%, and a further decline in the price of floor cleaning machines.
As for brand distribution during the 618 period, Tenergy/Zhuimi/Yunjing/Midea's sales revenue accounted for 43%/24%/6%/6%, respectively, with YoY changes of -7/+9/+4/-1pcts and changes from the 2023 Double Eleven event of -9/+5/+4/-1pcts. Tenergy occupied the top of the sales revenue market share. In terms of sales revenue, Tenergy/Zhuimi/Yunjing/Midea achieved sales revenue of 560/310/80/80 million yuan, respectively, with YoY changes of -27%/+38%/+147%/-25%. The sales volume was 240,000/120,000/30,000/50,000 units with YoY changes of -5%/+56%/+159%/-2%, and the average price was 2321/2490/2809/1522 yuan with YoY changes of -23%/-12%/-5%/-23%.
Investment recommendations: Be bullish on the cleaning appliance sector. After the domestic sales promotion of sweeping robots based on low prices followed by high-end product penetration, a new round of product promotion and price increase is underway, with a high market concentration. Exporting promotion also continues, with both price and quantity rising. Recommended symbols include Beijing Roborock Technology and Ecovacs Robotics.
Risk warning: increased market competition, volatile raw material costs, and exchange rate fluctuations.