Core Viewpoint - The article discusses the decline of Vatti Corporation, once a leading player in the kitchen appliance industry, highlighting internal conflicts, management issues, and market competition as key factors contributing to its downfall [4][7][26]. Group 1: Internal Conflicts and Management Changes - Vatti Corporation has experienced prolonged internal strife, culminating in a board reshuffle that solidified the dominance of the Pan family, with the majority of board members now being family members [5][6]. - The company has modified its bylaws to remove restrictions on family members holding executive positions, signaling a shift towards a family-controlled enterprise [6][7]. - The internal power struggle peaked in 2023 when a conflict over control of Vatti Electronics led to a public dispute involving accusations of misconduct and a subsequent acquisition of shares to resolve the issue [22][24]. Group 2: Financial Performance and Market Position - Vatti's revenue has significantly lagged behind competitors, with 2024 revenues at 6.3 billion yuan, far below the 17.6 billion yuan of Fotile and 11.2 billion yuan of Boss Appliances [7][24]. - The company has seen a compound annual growth rate (CAGR) of only 0.31% from 2017 to 2022, with net profit plummeting from 510 million yuan to 143 million yuan during the same period [24][26]. - In Q1 2025, Vatti reported a revenue decline of 8.8% and a net profit drop of 14.33%, indicating ongoing financial struggles [25][24]. Group 3: Product and Brand Challenges - Vatti's product sales have suffered, with significant declines in key categories such as disinfection cabinets (down 18.96%) and cabinets (down 57.59%) in 2024 [28][29]. - The company's market share in the high-end segment has drastically decreased, with a notable loss of 6.8 percentage points in the mid-range market over five years [28]. - Consumer complaints regarding product quality and after-sales service have surged, reflecting a deteriorating brand reputation [29][31]. Group 4: Research and Development Investment - Vatti's R&D investment in 2024 was only 263 million yuan, representing a mere 4.13% of revenue, compared to competitors with higher R&D spending [32][33]. - The company holds 3,287 effective patents, which is less than half of Fotile's, and less than 30% of these are invention patents, indicating a lack of innovation [33]. Group 5: Future Outlook - Vatti faces a critical juncture, needing to address internal issues and adapt to a rapidly changing market landscape to avoid further decline [33]. - The company must decide whether to continue its current trajectory or make significant changes to regain market relevance and consumer trust [33].