Air conditioning price war! Gree has enlarged his tactics. Will Oakes of the United States fight against the landlords

 Air conditioning price war! Gree has enlarged his tactics. Will Oakes of the United States fight against the landlords

Announcement released by Grees official microblog. Photo source: Official Weibo of Gree

In the air conditioning price war, Gree will reduce the price first

Gree announced that since November 27, in Dong Mingzhus shop of Gree and authorized stores all over the country, two models of Junyue and t Shuang can be purchased at the same price of this years double 11, which are still the lowest 1599 yuan for variable frequency air conditioning and 1399 yuan for fixed frequency air conditioning.

Reporters from China entered the 10 billion subsidy area of Dong Mingzhus store and found that there were eight models participating in the activity, namely, the fixed frequency and variable frequency air conditioning of Junyue series, and the fixed frequency and variable frequency air conditioning of t Shuang series, all of which are three-level energy-efficient air conditioning.

It is worth noting that in the new round of air conditioning promotion announcement of Gree, only the deadline is from November 27, and there is no clear end date. The reporter asked the customer service to get a reply. At present, he has not received the specific notice about the end time of the activity.

The price reduction of Gree is a serial plan. Not long ago, on the double 11, Gree air conditioning launched two large scale promotions that set off a price war in the industry.

One is that on the evening of November 9, the public released the announcement on 11.11 to give 3 billion yuan of profits to fight against low-quality and fake products, and launched the giving 3 billion yuan of profits campaign with a large price of butchers knife. Later, peers such as Midea, Oxfam, Haier and Hisense followed up quickly and reminded consumers not to buy obsolescence machines or old energy efficiency while reducing prices Although there is no name, it is not hard to see that it implies that Grees price reduction has another secret.

Liu buchen, an observer of home appliance industry, commented on this phenomenon: from this years double 11 , the domestic air conditioning market is divided into two camps: Gree and other brands. The reason for Grees price reduction is to crack down on low-quality and fake products, and the reason for other brands price reduction is to crack down on Gree.

The other is the subsidy announcement announced by Gree on November 11, which gives subsidies to consumers who purchase Junyue and t Shuang series air conditioners from January 1 to November 10, 2019. The price reduction tide of the double 11s is expected, but the chain plan of price difference subsidy introduced by Gree makes many peers feel passive and unprepared.

Now, half a month from the double 11, Gree again offered the same promotion price. Will other companies follow up? It is not known. However, in recent years, it is rare for the air conditioning industry to launch such intensive price reduction promotions.

Data sheet: workers are installing air conditioning. Photographed by Zhang Yun, reporter of China News Agency

Gree, Midea and aux Three Kingdoms killing

The bloodbath among Gree, Midea and Oakes air conditioner manufacturers is far beyond the double 11.

After years of rapid development, the growth rate of air conditioning industry has slowed down obviously. However, in the cold winter of the industry, with the combination of e-commerce + low price, Oakes has made a bloody way in the duopoly pattern of Gree beauty.

According to the data of Ovi cloud, in 2018, Gree, Midea and Haier ranked in the front-line camp with market shares of 37.6%, 24.5% and 11.5% respectively in the offline air-conditioning market, while in the online air-conditioning market, the shares of the top three were 28.57% of Oakes, 22.49% of Midea and 17% of Gree. Oxfam ranked among the top three air conditioners with an overall sales volume of 7.42 million.

On the double 11 of 2019, the sales data of Oakes, the third place in sales, far exceeds that of Haier, the fourth place.

The new pattern of tripartite confrontation in the air conditioning industry has been basically formed, but the game of fighting against landlords has never ended. In 2019, Oakes continues to make efforts, even threatening the absolute position of Gree air conditioning industry. According to data released by Ovi cloud, online sales of Oakes air conditioner increased by 56% in the first quarter, while Gree air conditioner fell by 11.6%.

In March, Midea and Oakes also launched a price war first. This key war of air conditioning season has a great impact on the market. Gree did not actively respond. Midea and Oakes snatched Grees off-season market cake.

On the eve of 6.18, Gree Electric Co., Ltd. released the letter of report on the production and sale of unqualified air conditioning products by auch Air Conditioning Co., Ltd. on the official microblog. In response to this, Oakes said: Gree uses improper means to slander its peers in order to influence the sales in peak season of oaks, which is an unfair means of competition in the industry.

In response to this case, Dong Mingzhu, chairman and President of Gree Electric, said on November 28 that fighting is inseparable. Its not loyal to the market if you dont speak about inferior products. Gree naturally wants to fight.

Data chart: Dong Mingzhu, chairman and President of Gree Electric, is giving a keynote speech. Chen Jimin photo

Self help of big guy in air conditioning industry?

In the view of the air-conditioning industry, oaks can quickly counter attack the upper position through low price, so Gree can also recover the lost ground through price war.

Liu buchen analyzed the reason why Gree raised the price war again. He believed that the current air conditioning inventory remained at a high level, and one double 11 promotion could not solve the problem of high inventory. However, the air-conditioning market, which is full of fatigue, has seen a sharp drop in sales after the double 11, or even no sales at all.

According to the data of industry online, the sales and shipments of household air conditioners in the first half of 2019 dropped by 1.5% year on year, and the overall inventory of household air conditioners reached 48.62 million sets. Some people in the industry say that the air conditioner cant be sold and the industry leader cant sit still. Gree, who has always been clean and high, began to lower down and grab the cake of low price market and online market.

The market is sluggish. If Gree wants to grow, it has to make profits and promote sales. Liang Zhenpeng, an analyst in the household appliance industry, believes that Gree can grab more market share from its rivals by reducing price and gross profit rate to attract consumers to buy. Therefore, the price war launched by gree in the near future is the forced choice under the pressure of its performance growth.

At the same time, in 2020, the new energy efficiency standard of air conditioning may be implemented, and the inventory of old products will occupy a lot of funds. The models promoted by Gree double eleven are mainly three-level energy efficiency, fixed frequency and other inventory machines, which are directly facing the risk of being eliminated. This time Gree regards the online channel as the most efficient volume channel, which is also to promote the low-end products as soon as possible.

On October 28, Gree Electric announced that it will become the largest shareholder with Hillhouse capital. The biggest advantage of Hillhouse capital is to grasp the trend of Internet venture capital and industry, and to have the ability to transform the traditional industry. After the new capital force entered the Bureau, Gree Electric first shot at its own weak online channels, and achieved remarkable results. From Dong Mingzhus attitude towards e-commerce business in 2019, we can see that Gree will continue to act in e-commerce in the future.

No stimulation, no sales, Grees new round of big move has been released, waiting for other air conditioning manufacturers to take over. As of the time of publication, Midea, Oakes and other air conditioning manufacturers have yet to follow up the price reduction. In the near future, it remains to be seen whether the air conditioning price war can be fought again. (end)

Source: Qiao JunJing, editor in charge of China News Network