|
EQS Newswire / 04/09/2023 / 09:37 UTC+8 JS Global Lifestyle(1691.HK)：SharkNinja APAC segment records 84.6% growth in revenue, releasing development potential
It is true that financial data can directly reflect the past operating results of an enterprise, but sometimes simple financial figures may also lead to completely opposite conclusions, misleading the investors. In terms of investment, value judgment should be made by analyzing and understanding the reasons and trends behind it.
For example, JS Global Lifestyle may face such a “contrast”.
From the perspective of key financial data, in the first half of 2023, JS Global Lifestyle recorded year-on-year double-digit decline in both income and adjusted net profit from continuing operations, being different from its consistent stable operations. However, if looking into detials, we can find that this is mainly because it has just completed the Spin-off of SharkNinja Inc, and the results of Joyoung segment was under pressure from factors such as market downturns and operational adjustment, while the SharkNinja APAC segment, which determines its future potential, performed excellently.
The existing market size of the small household appliance market in Asia-Pacific region is considerable. Based on the existing categories of SharkNinja, the retail offtake sales reached $7 billion, while growing faster than other global markets. Therefore, the positive progress of SharkNinja APAC segment is expected to generate new value.
Specifically, in the first half of the year, SharkNinja APAC segment achieved a strong growth of 84.6% under constant currency.
At the same time, from the disassembling perspective of market dimension: 1) the Japanese market entered the stage of accelerated release of results, achieving a strong growth of 44.2% year-on-year, continuing the outstanding performance since Q1; 2) It entered new markets through strategic mergers and acquisitions, directly operated in Australia, New Zealand, Singapore and Malaysia, thus driving revenue in other markets up 28.6% year-on-year.
Exploring its core strategy, on the one hand, JS Global Lifestyle takes localization operation as the core to gain in-depth insight into consumers, develop local customized products and enhance consumer awareness to promote omni-channel sales network; On the other hand, the original excellent business logic of SharkNinja is integrated, and the increment will be created from three directions at the same time.
We may as well conduct analysis from the three directions, which also lays the foundation for its long-term growth potential.
From the experience of SharkNinja APAC segment in expanding the Japanese market, it has a strong consumer insight ability. They have swiftly entered the market by localizing their development efforts based on existing advantageous product categories. For instance, their innovative introduction of cordless vacuum cleaners tailored to Japanese consumers has driven sales growth in the Japanese market.
In June 2023, SharkNinja APAC segment launched CleanSense iQ/iQ+ series cordless vacuum, which quickly boosted its market share of cordless vacuums in Japan after launching, more than doubling the shelf space in the leading malls and contributing 50% to sales.
In the future, SharkNinja APAC segment can continue to promote the market share of vacuums through new product iterations. At the same time, the existing advantageous categories also include food preparation appliances and air fryers, which can further explore this direction by introducing more new products, thereby creating additional avenues for development..
In this regard, SharkNinja APAC segment has actively explored the category of kitchen appliances and achieved rapid results. For example, driven by marketing campaigns over the past three months, Ninja Creami ice cream maker has become its best performing product in Australia.
It is also worth mentioning that it plans to enter the hair care category to expand its consumer base, and it has launched the Shark FlexStyle hair styler in Australia, and this product will also be available in Japan in September. Earlier, this category was SharkNinja’s most successful Direct-to-Consumer (DTC) channel product ever in U.S. market, setting the record of sell-out history in Amazon and Best Buy, while it continued to open the market after entering new markets such as the United Kingdom, reflecting the strength of its products.
In terms of market, SharkNinja APAC segment has re-entered Singapore and Malaysia, and in the second half of the year, it will focus on investing in brand building and awareness, re-establishing relationships with retail partners, and enhancing online and offline channel layout; For the South Korean market, it also has channel construction expectations, which is expected to complete the layout of channel in South Korean within the year.
That is, SharkNinja APAC segment is set to initiate operations in six countries, including Japan, Australia, New Zealand, Singapore, Malaysia and South Korea, and according to its strategy, SharkNinja APAC segment has already targeted the top 25 cities in Asia Pacific, and it is expected that it will continue to enter more leading cities in other Asia-Pacific countries.
Finally, it is also worth noting that the Joyoung segment has begun to extend from the past single category of small kitchen electrical appliances to water purifiers, cleaning appliances, cookware and other categories to conduct its “1+3” product strategy; Given the similarities in cooking and eating habits between the Asia-Pacific and Greater China regions, the business collaboration and synergy between the Joyoung segment and SharkNinja APAC segment is expected to be highlighted, for example, the ODM business of the Joyoung segment can produce more customized products and services for it.
As a result, the development of SharkNinja APAC segment has diversified development momentum and is expected to further accelerate.
As mentioned above, the positive progress of SharkNinja APAC segment is expected to generate brand new value. This is where the latest financial report of JS Global Lifestyle really deserves attention.
04/09/2023 Dissemination of a Financial Press Release, transmitted by EQS News. Media archive at www.todayir.com |