It was already the peak season for air-conditioning sales, but the weather this year was not “goodâ€. The continuous rain in various places caused the peak season of air-conditioning sales this year to be far worse than last year. Many manufacturers and retailers lamented that this year’s peak air-conditioning season is going to be “coolâ€. Regarding the huge inventory, all parties are worried that this year will trigger a price war for air conditioners.
China’s air-conditioning market has been quite volatile in recent years. In 2015, the shipment volume of air-conditioners in the Chinese market fell by 1.1% year-on-year. In 2016, the sales volume increased by 9.1% year-on-year. years.
The hot sales of air conditioners in the Chinese market in 2017 were mainly due to the extremely hot weather around the world. NASA and the US Oceanic and Atmospheric Administration (NOAA) jointly announced that the global temperature level in 2017 was the second highest since the 17th century. It can be seen that 2017 The degree of heat in the year. Affected by the extremely hot weather, China's air-conditioning market has been out of stock since it entered June in 2017, and many manufacturers have been out of stock.
The hot sales of air conditioners in the Chinese market in 2017 boosted the performance of Chinese air-conditioning companies. Take Gree, the largest air-conditioning company in China, for example. In 2017, its revenue increased by 37% year-on-year to RMB 148.286 billion, marking its establishment. The highest record ever, surpassing the 140 billion revenue set in 2014.
The domestic weather this year has not been as hot as last year, and even the continuous rain throughout the country has made air-conditioning companies that rely on the sky to suffer. Moreover, with the domestic regulation of real estate, the sales of new homes have been suppressed and it is not conducive to air conditioning. The sales of air-conditioning companies may not be able to achieve the same high growth results as last year this year.
Huge inventory pressureAffected by the hot sales of air conditioners in the domestic market in 2017, since the end of last year, air-conditioning companies have been full of confidence in this year and are producing at full capacity. As of March this year, the domestic market’s air-conditioning inventory has reached 40 million units. Fang hopes that this year’s peak air-conditioning sales season will help them clean up their inventory.
However, judging from the current sales situation in various places, air-conditioning companies and retailers have reported that air-conditioning sales are not optimistic, and the inventory level is still high. As of March this year, the 40 million sets of inventory have not been effectively cleared, and the production of air-conditioning companies is still In the continuation, this is causing them to fall into anxiety.
In fact, this sign has already appeared in the first quarter of this year. In the first quarter of this year, domestic air-conditioning sales increased by 16.31% year-on-year. In the first quarter of 2017, domestic air-conditioning sales increased by more than 50% year-on-year. The situation that air-conditioning companies did not pay enough attention at that time led to high air-conditioning inventory levels, which caused the domestic air-conditioning industry to suffer from high inventory levels.
Price war or outbreakIn 2014, the sales of air conditioners in the Chinese market only increased slightly by 0.7% year-on-year. This led to the industry’s 40 million inventory in the fourth quarter of this year. Gree, which has not been in a price war since its establishment, felt the pressure. In the fourth quarter of a year, it launched its first air-conditioning price war. It can be seen that air-conditioning companies often resort to price wars to clean up their inventories when faced with huge inventories.
The online market is becoming the focus of the domestic air-conditioning market. In the domestic offline air-conditioning market, the two giants Gree and Midea have formed a stable pattern. They rely on their powerful offline stores to make it difficult for other air-conditioning companies to challenge. The online market is another scene. Gree, Midea, and Oaks are the top three, occupying more than 20% of the market share, and Gree, the number one, has no more than 30% of the market.
The primary means of competition in the online air-conditioning market is the price war. This is also the main reason for the rapid rise of the online market. From an e-commerce platform, it can be seen that the prices of the positive 1.5 HP air-conditioners Gree, Midea, and Aux are 3249 yuan, respectively. 2799 yuan, 2188 yuan, in the face of the rise of the Oaks online market, Gree has initiated a patent lawsuit against Oaks.
With the current high level of air-conditioning inventory and the continued price war for AUX’s online market to grab market share, I believe that in the rest of this year, Gree will not rule out another price war to ensure its market share leadership and suppress AUX’s market share. Continue to rise.
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