Everbright-Zhongying Capital was jointly established by China Everbright Limited ("CEL", stock code:  165.HK）and Focus Media, which focuses on growth stage investment in new areas of consumption. It announces that it serves as the leading investor in Series C financing to proceed with the investment in Chunmi, a leading enterprise committed to internet small household appliances and a link in Xiaomi’s ecosystem. Star VC, a private equity fund established by several movie stars, also joined this round of investment. The financing will be used to manage inventory, market investment and research and development of core products.

Chunmi is the most important link in Xiaomi’s small kitchen appliances industry. The investment into Chunmi enables Everbright-Zhongying Capital to crack into Xiaomi’s ecosystem and bag a qualified asset into the investment matrix, featuring technology-driven new consumption.

Reform small kitchen alliances with the strategy of creating a “hot cake”

As people’s living standard gets improved, consumption upgrading becomes trendy, which depicts the development of household appliances industry over the past two years. With the general popularization of large household appliances, the share occupied by small household appliances increases immediately, which is driven by “self-improving and entertainment-based” requirements. It represents the new direction of the upgrading of consumption.

Chunmi, founded in 2013, targets the segment of small kitchen appliances, and is dedicated to providing integrated solutions of cloud appliances, which focuses on intelligent household appliances. In 2014, it received investment from Xiaomi and became a provider of kitchen appliances in Xiaomi’s ecosystem.

With the vision of “redefining kitchenware”, it inherits the “high cost-effectiveness” of Xiaomi’s products and forges small household appliances with the craftsmanship of 3C Products. Its product lineup includes small kitchen appliances of MIJIA brand and independently developed brand. At present, its main products include MIJIA IH Pressure Rice Cooker, MIJIA IH Rice Cooker and so on. The products of independently developed brand will come to the market in 2018.

After several years of polishing, the strength of Chunmi’s products has withstood the test of the market. In 2016, it delivered 170,000 units and achieved profitability with a revenue of RMB 100 million. In 2017, its sales reached 607,000 units. With the continuous expansion of its product lineup, the sales of MIJIA’s products are expected to reach 2.925 million units by 2021. The sales for independently manufactured products will reach 2.46 million units. The total sales may reach 5.385 million units. It is highly possible that the rapid growth momentum will rewrite the pattern of the traditional rice cooker market.

Spotting the new consumption competition driven by technologies

The investment is of great significance to Everbright-Zhongying Capital. It not only has bagged in one of the top ten enterprises in the first-tier of Xiaomi’s ecosystem, but testifies Everbright-Zhongying Capital’s investment philosophy, which focuses on the new areas of consumption driven by technology.

Since its founding in 2016, Everbright-Zhongying Capital has been clear about its investment strategies. It pays close attention to the observation, research, investment and cooperation in the most cutting-edge areas. It understands the young generation and knows well about the value in technological revolution. All these scarce capabilities serve as the foundation for its investment in the new consumption market.

According to Everbright-Zhongying Capital, the category of products in the small household appliances market has developed into a subdivided and individualized direction. Meanwhile, the function experience is aiming at younger generation with intelligent products. At the very beginning of its positioning, Chunmi’s products have sought a new path, which successfully avoid the market monopolized by traditional brands. It targets at young people, who have specific higher requirements for cost-effectiveness and convenience. And they are also a group who seek after stylishness and a sense of technology. It is believed that with the upgrading of small household appliances represented by Chunmi and the rise in the possession by households, the high-quality intelligent household appliances will redefine Chinese people’s livings styles in the future and lead the new consumption style.

Everbright-Zhongying Capital said，“We value high on Chunmi's attitude on the products, which is characterized as pursuing for excellence. The enterprise has made household appliances with the 3C products processing requirements. The pursuit for excellence means that it pays attention to each detail of each product. The repair rate is greatly lower than the average in the industry. Meanwhile, as a member in Xiaomi’s ecosystem, it enjoys a cost advantage in supply chain and channel with the backing from Xiaomi. We hope that the enterprise can keep its attitude of continuous pursuit for excellence and we are expecting more products.”

Yanghua, the founder of Chunmi said that: “In terms of the industry, it is difficult to witness any great increase in the requirements for traditional household appliances against the backdrop of consumption upgrading for the market is maturated. However, the new-type of small household appliances represented by self-improving and entertainment-based requirements has become the core trend in the industry. In the big landscape across the country, the prospect for small household appliances is upbeat. Chunmi satisfies the requirements of the middle class, who pursues high quality under the consumption upgrading. We will target the group and extend the product lineup. Based on the MIJIA brand and our own brand, we will gradually launch a full collection of kitchen appliances.”