"first kitchen appliance stock" falls behind: Why Have Fotile and Robam Stopped Including It?

Image / JD MALL Best-Selling Products Area

The appliance brand, which was once known as the "Three Musketeers of Fang, Lao, and Hua" alongside Fotile and Robam, has now fallen significantly behind.

In 2024, Vatti Corporation's revenue exceeded 6.3 billion yuan, while Fotile and Robam Appliances both achieved revenues of over 10 billion yuan during the same period. Currently, Vatti Corporation's market value exceeds 5.5 billion yuan, Fotile Group is not listed, and Robam Appliances' market value has surpassed 18 billion yuan.

The traditional home appliance giant, which once set the "double hundred billion" goal, seems to have failed to seize the breakthrough direction of emerging high-end appliances after experiencing internal equity struggles and chaotic channels. Instead, it remains entrenched in the traditional kitchen appliance business for a long time.

An elephant turning around is easier said than done.

Vatti Corporation, established in 1992, was born in Zhongshan, Guangdong. It initially engaged in the research and production of kitchen appliances. Nowadays, its product range covers traditional kitchen appliances such as range hoods and stoves, as well as emerging kitchen appliances like dishwashers, integrated stoves, and steam oven combos.

In its early years, Vatti quickly opened up the market with its reputation for being affordable and high quality. In the year it was founded, its sales exceeded 40 million yuan. In September 2004, Vatti Co., Ltd. successfully listed on the SME board of the Shenzhen Stock Exchange, becoming the "first stock in the kitchen appliance industry."

Vatti, which now appears somewhat desolate, also had its moments of glory.

In 2006, Vatti became the exclusive supplier of gas appliances for the Beijing 2008 Olympic Games and successfully developed and manufactured the Olympic Games' "Xiangyun" torch. To this day, the Olympic "Xiangyun" torch they produced still hangs in a prominent position in Vatti's sales stores as a testament to their past glory.

In 2015, Pan Yejiang, who had just assumed the position of Chairman of Vatti, was 38 years old and full of vigor, much like Vatti itself, which was in its prime — that year, Vatti Co., Ltd. achieved a revenue of over 3.7 billion yuan and a net profit attributable to the parent company of 200 million yuan.

The group's "double hundred billion" goal was also proposed in that year, aiming for both annual revenue and market value to exceed ten billion. At that time, this seemed like an easily achievable performance target for Vatti.

In 2018, Vatti gained significant attention with its marketing campaign "If the French team wins the World Cup, Vatti will refund the full amount," which earned the company considerable public interest.

However, the glory was soon replaced by performance fluctuations.

In 2019 and 2020, Vatti Corporation's revenue decreased by 5.69% and 24.14% year-on-year, with the 2020 revenue even falling below 5 billion yuan. Although revenue has improved in the subsequent years, the company's net profit attributable to shareholders still declined by 49.17% and 30.98% year-on-year in 2021 and 2022, respectively.

In 2024, driven by national subsidy policies, Vatti Corporation showed signs of recovery in its performance. The company's revenue exceeded 6.3 billion yuan, achieving a net profit attributable to the parent company of 485 million yuan, with year-on-year growth rates of 2.23% and 8.39%, respectively.

By the first quarter of 2025, Vatti Corporation's performance changed again. The company's revenue and net profit were 1.26 billion yuan and 106 million yuan, with year-on-year growth rates of -8.8% and -14.33%, respectively.

Vatti Corporation stated that the performance base in the first quarter of 2024 is relatively high, and last year's "national subsidy" policy drove a significant wave of sales at the end of the year, which has cannibalized the market demand at the beginning of this year. Meanwhile, the "window period" in the policy implementation for 2024 and 2025 has led to a decline in market demand in January and February.

According to estimates by CICC, the contribution rate of the national subsidy policy to Vatti's revenue in 2024 is approximately 15%, while in 2025 this proportion drops to less than 5%, directly leading to a weakening of the company's growth momentum.

As a downstream market of the real estate industry, the growth of the kitchen appliance sector also depends on the prosperity of the real estate market. In the first quarter of 2025, new projects in the Chinese real estate fine decoration market decreased by 38.9% year-on-year, and the market size decreased by 42.1%. The market lacks motivation for kitchen appliance replacements, and as a result, Vatti Corporation's products are naturally not selling as well as before.

More importantly, compared to Fotile, which focuses on high-end kitchen appliances, and Robam, which is adept at creating the "wash and disinfect integration" concept, Vatti's brand positioning appears to be somewhat unclear.

In 2023, Vatti upgraded its brand positioning to "Fashionable Scientific Kitchen Appliances," proposing the standard system of "easy to use, good-looking, and easy to clean." However, this positioning not only has vague boundaries but also struggles to leave a deep impression on consumers.

Even the "Integrated Cooking Center," which is prominently promoted on the official Vatti website, doesn't have much presence in terminal stores. It features a dual-chamber steam oven below the stove, emphasizing a multifunctional cooking experience in a small space. The store sales staff only mentioned that it can be linked for cooking, with a separate range hood, and that other equipment can be paired below the stove, without providing much detailed information.

Image / Vatti Store's "Integrated Cooking Center"

Declining performance and lack of distinctive products have caused the "first kitchen appliance stock" to lose its luster.

 2

Vatti Corporation is not a common family-owned business. The company was founded by seven people: Pan Quanzhi (Pan Yejiang's father), Huang Wenzhi, Huang Qijun, Guan Xiyuan, Li Jiakang, Deng Xinhua, and Yang Jianhui. Early on, the seven founders agreed to evenly split the shares and not allow relatives to enter the factory, earning them the nickname "The Seven Gentlemen of Vatti."

However, the early agreement of "no relatives allowed in the factory" was gradually broken as the founding team aged, 20 years after the establishment of Vatti Corporation.

In 2012, Youjia Electric merged with Baide Kitchenware. Pan Yejiang, the son of Pan Quanzhi, one of the "Seven Gentlemen of Vatti," is the founder of Youjia Electric. Baide Kitchenware was jointly founded by Pan Yejiang and his second uncle, Pan Jinzhi, and third uncle, Pan Yuanzhi.

Subsequently, Vatti Corporation acquired 100% equity of Bette Kitchen and Bath through a "share issuance + cash" method, and Pan Yejiang consequently entered the management team of the listed company. Immediately after, Pan Yejiang acquired the shares of several company veterans and quickly became the new actual controller of the listed company.

Pan Yejiang's aggressive tactics and the contentious process of dismissing veterans led to continuous conflicts. The "Seven Gentlemen" members also sued Vatti Corporation, but ultimately lost the case. This internal power struggle only came to an end many years later.

A decade-long internal power struggle within the management has also led to ongoing turbulence within Vatti.

Over the ten years of Pan Yejiang's leadership, four general managers have been replaced, with an average tenure of less than two years, and the marketing system has undergone seven structural adjustments. The company proposed the "Double Hundred Billion" goal in 2015, which was changed in 2017 to "One Hundred Billion in Three Years, Number One in Five Years, Two Hundred Billion in Six Years." Subsequently, the company's performance declined, and this goal was no longer mentioned by the management.

While most home appliance brands are focusing on emerging channels such as platform e-commerce and live-streaming e-commerce, Vatti's offline channels are unexpectedly thriving.

According to Vatti Corporation's financial report, Vatti has now established an integrated online and offline omni-channel management system. In 2024, the company will continue to expand its offline channels, primarily through an agency system. These offline channels consist of distribution channels, LKA channels, major KA channels, innovative channels, and pre-installation channels, with a focus on differentiated product offerings.

In 2024, the company will add more than 500 new offline franchise stores throughout the year and establish local life partnerships with multiple platforms such as Douyin, Meituan, and Amap, promoting over 1,500 offline stores to join online platforms.

According to the financial report, in 2024, Vatti Corporation's revenue from offline channels, online channels, and engineering channels (referring to the business of appliance companies cooperating with real estate developers for kitchen appliance installations in furnished homes) were 3.148 billion yuan, 2.059 billion yuan, and 300 million yuan, respectively. The year-on-year growth rates were 11.07%, -5.95%, and -40.46%. Among these, the offline channel revenue accounted for 49.4% of the total, with a rapid year-on-year growth, contributing significantly to Vatti's performance.

Vatti Corporation's financial report did not disclose the number of outlets for the main brand, but Vatti's official website only revealed two stores in the Beijing area.

Image / Vatti Official Website

Most of Vatti's products are priced the same online and offline. Combined with national subsidies and mall discounts (for example, the JD MALL offline promotion where spending over 10,000 yuan gets a 1,000 yuan discount, with a maximum discount of 3,000 yuan), some products may be a few hundred yuan cheaper offline than online. This might be one of the reasons for the growth in Vatti's offline channel sales.

Notably, in 2024, the gross profit margin of Vatti Corporation's offline channels was 39.45%, a slight increase of 0.79% year-on-year; the gross profit margin of online channels was 49.78%, a year-on-year decrease of 1.42%.

In terms of regions, Vatti has been continuously increasing its focus on second, third, and fourth-tier cities as well as township markets in recent years. In 2024, its new retail channel GMV growth rate reached 41.35%, with over 3,000 new stores opened, and the revenue share from lower-tier markets increased to 35%.

However, relying too heavily on offline channels has also planted hidden risks for the company's future development.

On one hand, the coverage area of offline channels is limited. It is not difficult to find from Vatti's official website that the layout of its stores in a city is mostly in single digits. In particular, home appliance and furniture malls are often sparsely populated. Vatti's offline channels still maintain rapid growth, but compared to the higher profit margins online, this may inevitably affect the company's profits.

On the other hand, "Entrepreneurship Frontline" visited several brand stores and found that most kitchen appliances have limited smart features, primarily focusing on gesture control, smoke-stove linkage, and timed shut-off. Traditional parameters that demonstrate product functions are more convenient for young consumers to compare prices online, giving online channels greater growth potential.

 3

Unlike its peers who are vigorously developing emerging kitchen appliances such as integrated stoves and dishwashers, Vatti remains "committed" to the traditional kitchen appliance field.

According to the financial report, in 2024, apart from the sales of 2.537 million units of range hoods, which increased by 7.22% year-on-year, the sales of stoves, disinfecting cabinets, and cabinets declined by 0.57%, 18.96%, and 57.59%, respectively.

During the same period, the three major categories of the company – range hoods, stoves, and water heaters – contributed over 86.8% of the revenue, while other kitchen equipment and related businesses accounted for only 13% of the total revenue.

Although Vatti has repeatedly emphasized its high-end brand positioning in its financial reports, the company still focuses on traditional range hood and stove products, which also indirectly indicates that it is gradually losing its voice in the high-end kitchen appliance market.

"Vatti range hoods and stoves can meet basic needs, but if it's for young people's new home renovations, they tend to choose brands with better specifications like Fotile and Robam," the aforementioned sales personnel stated. "In terms of emerging kitchen appliances like dishwashers and steam ovens, if the budget permits, people will consider brands like Robam, Casarte, or even Siemens. However, at the same price, consumers are more inclined to buy Midea, as it offers high cost-effectiveness, with a steam oven priced at just over 3,000 yuan. Vatti's dishwashers sell less."

As consumers' living standards improve and consumption concepts shift, the demand for emerging kitchen appliance categories such as integrated stoves, dishwashers, and steam ovens has grown rapidly. However, Vatti, which has been slow in transitioning to high-end products, seems to have missed this opportunity for upgrading in the kitchen appliance industry.

For example, Midea has invested tens of millions to enhance emerging kitchen appliance categories. Since entering the integrated dishwasher market in 2021, its performance has doubled for three consecutive years. Haier's smart kitchen scenario also integrates a series of emerging kitchen appliance categories, such as integrated stoves and dishwashers.

FOTILE, Robam, and other "veteran players," along with "new players" like Martian and Zhejiang Meida, are also vying for the emerging kitchen appliance market.

Fotile has entered the scenario-based market with its integrated cooking centers, achieving a customer unit price exceeding 20,000 RMB. Meanwhile, Zhejiang Meida has bet on integrated stoves, reaching a peak profit scale of 665 million RMB.

From the research and development perspective, the investment of kitchen appliance companies in emerging categories is more evident.

In 2024, Vatti Corporation's R&D investment amounted to 263 million yuan, with an R&D expense ratio of 4.13%. During the same period, Marsman Company's R&D investment was 107 million yuan, with an R&D expense ratio as high as 7.78%. As two kitchen appliance companies with similar market values, Marsman's stock price is more than twice that of Vatti, and its R&D expense ratio is also significantly higher than Vatti's.

In terms of patents, in 2024, Vatti Corporation added 885 new patent technologies, bringing the total number of patents to 4,416. In comparison, Fotile has accumulated 15,000 authorized patents, with more than 4,000 of them in the range hood category.

In recent years, Vatti has been committed to creating the "Fashion + Kitchen" concept and launched the "Clean Kitchen Solution." Pan Yejian also stated the intention to focus on the national-level issue of kitchen cleanliness.

During visits to multiple kitchen appliance brand stores by "Entrepreneurial Frontline," it was found that Vatti's brand positioning and product features are not prominent. When introducing products at different price points, Vatti store salespeople did not highlight the "clean" technology feature of the product. Its smoke-stove linkage and timed ignition functions are also common features in current smoke and stove products.

In contrast, although the stores of Fotile, Robam, and Mars are not large, Fotile's range hoods feature a concealed and flush design as their main characteristic. Robam's dishwashers focus on "washing and disinfecting in one," while Mars' integrated stoves not only have a dishwasher set below the cooktop but also offer an integrated sink. Each has its flagship products and distinctive memorable features.

Vatti stores primarily feature kitchen hood and stove sets, while dishwashers and integrated products occupy less space. In contrast, Fotile and Robam dishwashers and steam-oven combination appliances take up more prominent positions.

From online channels, it is not difficult to find the weakness of Vatti in the sales of emerging kitchen appliances.

The flagship models of Boss and Fotile's steam oven have sold thousands or even tens of thousands of units, while Vatti's steam oven sales are only 300+. Moreover, their dishwasher sales are only in two digits.

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Image / Vatti Tmall Flagship Store

Traditional kitchen appliance business and offline channels are undoubtedly Vatti's comfort zone. However, as the kitchen appliance industry itself enters a more high-end and intelligent era, Vatti finds it difficult not only to catch up with long-standing competitors like Fotile and Robam in the short term, but also faces challenges from emerging brands aiming for overtaking in curves.

In the era of emerging kitchen appliances, Vatti is facing a comprehensive siege, and there is not much time left for it.