Xiaomis revenge on a billion yuan Miss Dong worries about how to calculate this account?

 Xiaomis revenge on a billion yuan Miss Dong worries about how to calculate this account?

Photo: Dong Mingzhu. Photo by Luo Yunfei, a reporter from China News Agency

However, in this years double 11 Shopping Festival, Gree, who has never been willing to keep a low profile, has been robbed of the limelight by another enterprise. It is Lei Jun, the founder of Xiaomi, who has a deep resentment with Dong Mingzhu.

Old hate and new enemy are added to old hatred. How to calculate the account of Miss Dong?

Top air conditioner

On November 12, Gree released the 11.11 war report, marking the first sales of air conditioning in the whole network: during the 11.11 period, the sales of Jingdong air conditioning self operated stores & pop stores and tmall air conditioning stores ranked first, and its own e-commerce platform Gree dongmingzhu store also achieved sales of 410 million yuan during the 11.11 period.

Part of Grees 11.11 war report. Photo source: Official microblog of Gree

In 2018, he said, I am the worlds largest air conditioner, how old is the United States? For Dong Mingzhu, chairman and President of Gree Electric appliances, air conditioning has always been Grees bottom card.

Dong Mingzhus confidence did not come out of thin air. According to the annual report of Gree Electric appliances in 2019, according to the data released by HVAC information, Gree central air conditioner is firmly in the leading position in the industry with a market share of 14.7%, realizing the eighth consecutive crown in the domestic market; according to the data released by the Japan economic news agency in 2019, Gree Electric Co., Ltd. ranks first in the field of household air conditioning with a global market share of 20.6%.

It is a happy event for Gree to keep its position as the No. 1 air conditioner in the biggest consumption season of the year. We should know that under the influence of the epidemic situation, the air conditioning industry has just experienced a coldest year. From January to July 2020, the retail sales of air conditioning market in China will reach 99.1 billion yuan, a year-on-year decrease of 27.7%.

But the joy didnt last long. A bigger problem was put in front of Gree. This time, it was Lei Jun who had a one billion bet deal with Dong Mingzhu.

Seven years is not too late

This is Xiaomis best performance since he participated in the double 11! In the double 11 letter issued by Lei Jun, CEO of Xiaomi, the jubilant atmosphere was expressed.

From the first day of the 11th to the 6th, the mobile phone sales volume of Xiaozhuo and jingsuning returned to the first day of the 11th. At the same time, during the double 11 period, the total sales volume of new retail Omni channel in Xiaomi China exceeded 14.3 billion yuan.

Good grades bring good rankings. Suning e-buy Wukong list data shows that as of 21:00 on November 11, the cumulative sales of household appliances brands (October 21-november 11) ranked the top three brands: Midea, Haier and Xiaomi, while Gree Electric Appliance ranked fourth after Xiaomi.

In Jingdongs 11.11 global list of good household appliances, although Gree kept its top three position at the last minute, compared with Midea and Haier, the flower exploration debate has been quite fierce. Even in the daytime on the 11th, Xiaomi was still ahead of Gree.

At an award ceremony at the end of 2013, Dong Mingzhu and Lei Jun, who were both selected as economic figures of the year, had a verbal battle over different development models of the Internet and new retail. Lei Jun proposed that if Xiaomis turnover exceeded Grees in five years, Dong Mingzhu would lose 1 yuan to Lei Jun; Dong Mingzhu responded on the spot that its impossible and said, if you want to bet, youll bet one billion yuan..

Over the past five years, Grees revenue has increased from 120 billion yuan to 1980 billion yuan, an increase of 60%; millet has increased from more than 20 billion yuan to 174.9 billion yuan, an increase of nearly eight times. Although Xiaomi failed miserably, it was quite dramatic that in the second year after the result was settled, the revenue of Xiaomi surpassed that of Gree.

Opponents warning

It is a diversified, scientific and technological global industrial group with three brands of Gree, tosot and Jinghong, covering four major fields, including HVAC, household appliances, high-end equipment and communication equipment. Gree Electric has introduced itself in the annual report.

But in fact, Grees goal of diversification does not seem to be progressing smoothly.

According to the report on Chinas home appliance market in the third quarter of 2020 issued by China Institute of electronic information industry development, Grees air-conditioning products accounted for 83.22%, 78.58% and 69.99% of the revenue respectively from 2017 to 2019.

From the data point of view, air conditioning business occupies the absolute dominant position of Gree Electric revenue. At the same time, Gree seems to be trapped in this card.

According to the third quarter report of 2020, Grees revenue in the third quarter of 2020 was 56.387 billion yuan, a year-on-year decrease of 2.35%; the net profit attributable to shareholders of listed companies was 7.337 billion yuan, a year-on-year decrease of 12.32%.

While Gree still maintained the decline in the first half of the year, Midea and Haier have got rid of the impact of the epidemic. Not only did the revenue and net profit of the third quarter turn positive, but also achieved a substantial growth.

Between the decrease and the increase, it reflects the different development path of the three leading enterprises of white household appliances. Some industry analysts believe that Grees lack of recovery power is mainly due to excessive reliance on a single air conditioning product.

Photo: Lei Jun. Photo by Hou Yu, reporter of China News Agency

If the label of Gree Electric appliances is selling air conditioners, Xiaomi has always been regarded as a mobile phone seller. However, compared with Gree Electric, which is struggling to maintain its position as the No. 1 in the industry, Xiaomi is gradually realizing its main business and other consumer products.

According to the financial report of Xiaomi in the first quarter of this year, the income of IOT and consumer products of Xiaomi was 13 billion yuan, accounting for nearly 30% of Xiaomis revenue, which has become an important support for Xiaomi to get rid of mobile phone dependence.

This also led Lei Jun to announce in an internal letter to Xiaomi in August that in the next decade, Xiaomis core strategy will be upgraded to mobile phone u00d7 aiot. Under this multiplier effect, aiot business should become the catalyst and combustion promoter of mobile phone business, penetrate more scenes, win more users, obtain traffic and data, and become the moat of Xiaomi business model.

Miss Dong in loose mouth

Old rival Midea and new enemy Xiaomi have made gratifying achievements on the road of all-round development, and Iron Lady is hard to avoid.

On November 17, at a conference attended by Dong Mingzhu, the issue of one billion bets was mentioned again. Ms. Dong, who does not admit defeat, emphasizes that our time limit for gambling is five years. If we take five years as the boundary, or Gree wins.. At the same time, she also said that Gree will actively embrace the Internet and use Internet technology to make manufacturing enterprises more powerful.

Some people in the industry pointed out that although the offline channel was once one of the strongest driving forces for Grees development in the past decade, most of its business relies on offline channels. Walking on one leg is obviously not conducive to coping with the impact of uncertainty. In particular, in recent years, the penetration of online shopping habits has become more and more deep, and the neglect of online channels obviously has a great impact on its performance.

According to the published data, as of October 18 this year, Dong Mingzhu has carried out 11 live broadcasting with goods, and the sales volume of Gree Electric appliances is about 42.589 billion yuan, which is about 33.4% of Grees revenue of 127.468 billion yuan in the first three quarters of 2020.

Dong Mingzhus small step into the studio has become a big step for Gree to step out of the comfort zone. However, Gree still has a long way to go to ease the dilemma of single category. (end)

Source: Chen Hequn, editor in charge of China News Network_ NB12679