Core Insights - The "National Subsidy" policy is expected to support resilient growth in the home appliance market, with the third batch of funds amounting to 69 billion yuan already allocated and a fourth batch on the way [1] - Key focus areas for brands in the home appliance sector include product upgrades, offline experience innovation, service enhancements, and instant retail to thrive in the second half of the subsidy policy [1] Company Strategy - Vatti has positioned itself as a leader in the high-end kitchen appliance market by integrating "fashion" and "cleanliness" into its product offerings, exemplified by its "Clean Kitchen" initiative [3] - The company has achieved significant market share, holding 37.17% of the online ultra-thin range hood market as of February 2024, maintaining its top position for two consecutive years [3] - Vatti's recent product launches, including the "Beauty Bath" water heater and "World Health Steam Oven Master," focus on health and skincare, catering to the needs of elite consumers [3][4] Market Positioning - Continuous optimization of product structure has strengthened Vatti's influence in the high-end market, establishing a perception that "high-end equals Vatti" [4] - The company has transformed its offline stores into experiential centers, enhancing customer engagement through innovative design and interactive spaces [6] Service Innovation - Vatti recognizes the shift from market growth to service competition, emphasizing user satisfaction as the primary criterion for service excellence [8] - The company has implemented a comprehensive service model, the "330 service," which includes pre-sale, in-sale, and post-sale services, with 30 distinct service offerings [9] Marketing Strategy - Vatti has launched the "Ten Thousand Stores Navigation" project to innovate offline marketing, introducing mobile specialty stores to engage directly with communities [10] - As of May 2025, Vatti's community marketing initiatives have successfully conducted 1,105 events, achieving a sales rate of 65.33% and a customer engagement rate of 82.27% [10]

Core Insights - The "National Subsidy" policy is expected to support resilient growth in the home appliance market, with the third batch of funds amounting to 69 billion yuan being allocated to local areas by the end of July 2025, and the fourth batch on the way [1] - Key focus areas for brands in the home appliance sector include product upgrades, offline experience innovation, service enhancement, and instant retail to capture market opportunities in the second half of the subsidy policy [1] Group 1: Brand Positioning and Product Innovation - Vatti has positioned itself as a leader in the high-end kitchen appliance market by integrating "fashion" and "cleanliness" into its product offerings, exemplified by its "Clean Kitchen" concept [3] - The company has achieved significant market share, with a 37.17% retail volume share in the online ultra-thin range hood market as of 2024, maintaining the top position for two consecutive years [3] - Vatti's recent product launches, including the fourth-generation health bathing product and the "World Health Steamer," reflect its commitment to health and innovation, catering to the needs of health-conscious consumers [3][4] Group 2: Retail Experience and Marketing Strategies - Vatti has transformed its offline stores into "trendy landmarks" and "experience centers," enhancing customer engagement through innovative store designs and immersive experiences [6] - The company has adopted a new terminal image design that emphasizes a warm, inviting atmosphere, appealing to younger consumers and aligning with modern lifestyle preferences [6] - Vatti's "Community Marketing" initiative, which includes mobile specialty stores, has successfully integrated sales channels and increased customer engagement, achieving a 65.33% sales rate in community events [10] Group 3: Service Enhancement and Customer Experience - The shift from market growth to service competition has led Vatti to prioritize service quality, implementing a comprehensive service system that includes pre-sale, in-sale, and post-sale support [8][9] - The introduction of a user experience monitoring system and a dedicated service vehicle fleet aims to improve service efficiency and customer satisfaction in underserved markets [9] - Vatti's focus on enhancing service capabilities is seen as a critical strategy for maintaining competitiveness in a changing market landscape [8]

Core Viewpoint - The competition in China's high-end kitchen appliance market is intensifying, with Vatti, Fotile, and Boss forming a "three strong" situation, while Vatti demonstrates resilience and growth potential despite market pressures [1][2]. Group 1: Industry Trends and Market Position - Vatti, despite being smaller in scale compared to Fotile and Boss, has carved out a differentiated path through unique value propositions and growth resilience [2]. - In 2024, Fotile reported revenue of over 17 billion, Boss at 11.21 billion, and Vatti at 6.37 billion, with Vatti achieving a net profit of 485 million, marking an 8.39% year-on-year increase, showcasing its ability to break through value under pressure [2]. Group 2: Product Innovation and Brand Strategy - Vatti has established "value recognition" in the high-end market by breaking the conventional logic that "industry downturns must lead to price cuts," focusing on technological innovation and quality upgrades [3]. - The company emphasizes user needs by developing products that are "easy to use, aesthetically pleasing, and easy to clean," with notable products like the second-generation ultra-thin range hood and powerful dishwashers [3]. - Vatti's average selling price increased by 2.15%, indicating enhanced brand premium and competitive strength through product technology iterations [1]. Group 3: Market Expansion and Consumer Trends - With rising incomes and changing consumer attitudes, Vatti captures the trend of consumers willing to pay a premium for intelligent, healthy, and aesthetically pleasing high-end products [5]. - The company employs a "channel flattening + localized product" strategy to penetrate lower-tier markets, developing products like simplified smart stove packages priced under 20,000, catering to the aspirations of rural consumers [5]. Group 4: Diversification and Ecosystem Development - Vatti is exploring diversification paths centered around a "clean kitchen" system, expanding into related categories like water purification and waste disposal, while avoiding blind expansion [6]. - The company maintains a focus on core categories, with over 66% of revenue coming from range hoods and stoves, and a 6.14% increase in R&D investment [9]. Group 5: Marketing and Brand Image - Vatti is actively pursuing a brand rejuvenation strategy targeting younger consumers, collaborating with young celebrities to enhance brand appeal [7]. - The company has launched a series of short videos showcasing how kitchen appliances improve quality of life, achieving over 100 million views and increasing brand recognition among consumers aged 18-35 by 30-40% [9]. Group 6: Channel Strategy and Sales Growth - Vatti has established a unique competitive barrier in lower-tier markets through a comprehensive channel strategy, achieving a 41.35% growth rate in new retail channel GMV and increasing its revenue share from lower-tier markets to 35% [12]. - The company has transitioned from "single-point breakthroughs" to "full-domain penetration" in lower-tier markets, forming a refined network of online and offline sales [12][13].