As cordless vacuum cleaners went popular, industry giant Dyson
announced that it will phase out corded ones, followed by TTI (Vax, Hoover,
Dirt Devil), Rowenta, aiming to completely transform to the cordless field.
As feedbacked overseas, traditional horizontal vacuum cleaners
in Europe and North America were less sold, different from Middle East, South
American and Africa. Europe is in a rush to transfer to cordless ones.
Basically, OEM is about cordless products, while the traditional
horizontal ones have been put away in terms of the supply chain. It is just a
matter of time to fully achieve a cordless market.
How long time will it take for the transfer? You may refer to
the market share change when smart phones come out.
The following picture shows the changes in the global smartphone
market from 2009 to 2013. We noticed a drop from less than 7% of sales in Q1
2009 to 30% in Q4 2013 (iPhone was rolled out in 2007), quadrupling in four
years.
Perhaps cordless vacuum market compared to corded one is not as
such a big difference as the smart phones compared with basic phones. That is
true. This picture is to imply that the real market may change faster than
imaged. Personally, I believe within 2-3 years, 3 out
of 10 vacuums in the world will be cordless. As the global annual sales of
vacuums is about 100 million units, 30 million units of cordless ones will it be.
In the past, primarily low-priced cordless vacuum cleaners were
sold as shown in the figure below, featuring nickel-metal hydride or lithium
battery and very weak suction. They are to be eliminated and replaced by more
powerful ones.
The change may overwhelmingly influence the entire vacuum
cleaner industry, especially practitioners involved.
Some leaders may fall behind, overrun by later comers.
The upstream and downstream industries may be affected
accordingly:
1. Motor. The motor industry will embrace complete revolution as
cordless vacuum cleaners are completely different from the traditional ones. Some
industries such as carbon brushes will even fully lose the market.
Now leaders in brushless motors include Japan’s Nedic and China’s
Cinderson. V10 motor used by Dyson has seen no rival with such high-level
function and small size.
Dyson has developed the V10 motor with 125000RPM four years ago.
The report below showed 100,000-rpm brushless motor was worked out in 2009, and
the 120,000-rpm one was developed in 2014.
Dyson’s new “V11” brushless motor (which may be of a
higher speed or a smaller size) has been developed, as we may speculate. When
competitors start to catch up with V10, Dyson may unveil a new one to regain
the leadership.
2. Printed Circuit board(PCB). The traditional one used is
simple, merely with some circuits and resistors, supplied by production lines armed
with a few workers. Now complicated circuit board and algorithms are featured, becoming
an impossible achievement for small circuit board plants. Now circuit boards applied
to cordless motor are under control of powerful large suppliers, and the circuit
control board development tends to be engaged in by brushless motor plants. Some
brushless motor leaders such as Cinderson and LEXY are building their own
circuit board team, to ensure core of motor in their own hands.
3. Power cord factory.
The power cord factory may suffer a direct hit, and disappear from
the cordless vacuum cleaner.
4. Hose and other accessories.
Hoses are not used in making of cordless vacuums, so China CGH,
the leader of vacuum cleaner hoses, has contemplated a shift to other
accessories such as water tank, ground brush, gold tube, as disclosed in its prospectus.
5. Dust bag.
Dust collectors account for most of the volume of a horizontal
vacuum in the past, often sold together with vacuum. Accessories such as dust
bags are often of higher profit margins than the product itself, yet to be cut
gradually. Cordless chargeable vacuum cleaners of dust bag type launched by G
tech and Oreck seem not the mainstream in the market and sales are not
pleasing.
6. Painting factory.
Cordless vacuum cleaners are smaller than the traditional ones.
Dyson always applies injection molding, lowering the level of aesthetics. Yet more
manufacturers follow suit to use injection molding. As a result, consumers
complain how come Dyson applies injection molding to such an expensive model
and even leaves making traces.
7. Lithium battery
Lithium battery makers will benefit most from the popularity of
cordless vacuums. Many are listed giants, itching to enter the market. At
present, Blueway based in Huizhou proves the early runner of the lithium
battery for cordless products. Now some large battery suppliers in electric
tool such as Jiangsu Ten Power, High Star, Jiangsu Sunpower, are making a
strong presence in this segment as well as leaders in lead acid and nickel-hydrogen.
Industry trends are irreversible. Those who seize the chances
and change will win.
