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Reporting competitors on the eve of 618 Gree's online dilemma

via:CnBeta     time:2019/6/11 23:32:12     readed:149

Said that many consumers feedback the company to the companyair conditioningThere is a problem of low price and high power consumption. For this reason, the company has found through its own laboratory and third-party quality inspection agencies that the product of the competitive product Oaks does have a large gap between its promotion and the nominal energy efficiency value, energy efficiency ratio and The test results of cooling power consumption are all a series of problems such as failure.

Regarding the allegations of competitors, Oaks also quickly responded to his official micro-signs, saying that the opponent’s accusation was untrue, there was unfair competition, and the public security organs had been reported. However, shortly after Oaks responded, Gree Electric again attacked the company and disclosed eight inspection reports of Oaks-related air conditioners issued by third-party quality inspection agencies on its official micro-computers, all indicating that the products were unqualified.

The competitors searched for the tripartite organization and reported the real name to the market inspection department. The time coincided with the online promotion of the major e-commerce 618. Gree Electric's "operating operation" made the market speculate constantly.

E-commerce and third- and fourth-tier cities become the growth engine of air-conditioning market

In fact, with the continuous regulation of the real estate market in the past two years, the growth rate of the domestic air-conditioning market has also been affected, and the growth rate has begun to show a significant decline. According to Zhongyikang data, from the third and fourth quarters of 2018, the retail volume of the domestic air-conditioning market fell by 20.1% and 5.8% year-on-year. Although the air-conditioning market in the first quarter of 2019, in the traditional decoration season, the opening season, the air-conditioning market was greatly promoted, compared with the previous two quarters, there was a slight rebound, but compared with the same period of last year, the industry growth rate still maintained a downward trend.

According to the data of Avi Cloud's "Q1 Air Conditioning Overall Market Report of 2019", the total retail sales of air conditioners in the first quarter of 2019 was 35.6 billion yuan, up 2.8% year-on-year, and the retail volume was 9.8 million sets, up 4.4% year-on-year. In the first quarter of last year, the overall retail sales volume and retail sales growth rate of air conditioners were 14.9% and 9.5% respectively. The report predicts that the sales volume of the domestic air-conditioning market will decrease by 2% year-on-year in 2019.

Figure 1: Change in the growth rate of the domestic air conditioner market

Although the growth rate is slowing down from the overall situation of the air-conditioning market, if it is from the data of the sales channel, it is another scene. In its "2018 China Air Conditioning Market Summary Report" disclosed by Aowei.com, it shows that from the retail channels of the air-conditioning market in 2018, the total amount of online sales was 61.2 billion yuan, with a total sales of 20.6 million units, which increased year-on-year. 19.7% and 13.7%; the total sales of offline channels was 139.9 billion yuan, with a total sales of 36.43 million units, down 1.5% and 4.2% year-on-year.

Figure 2: Online and offline sales data for the air-conditioning market

It can be found that the growth rate of the overall market of air conditioners has declined, mainly because the sales under the line have not increased and decreased. The main reason for this is that market analysts believe that the traditional offline sales model is because of the level of the dealer channel, the reason for the need to make profits, the space for price reduction is not flexible compared to the line, and the price is not sensitive to the first and second line air conditioners. The market is now close to saturation, and it is mostly a new market for stocks. On the contrary, the third- and fourth-tier cities and rural markets are more sensitive to price, and they are more willing to purchase air conditioners from online sales promotion and discounts.

The analysis of Aowei Cloud Network also believes that the air-conditioner in the third- and fourth-tier markets is relatively low, and the space for popularization needs still exists. The latter is one of the driving forces for market growth, while the first- and second-tier markets are greatly affected by the real estate market. It depends on the relaxation of real estate policy.

Gree's offline weakness and Oaks' online counterattack

As the big brother in the field of air conditioning, Gree has been deeply entrenched in many years, and has a large dealer channel in the country, and maintains a close relationship with them, occupying the position of the first place in offline sales for many years. According to the data of Ovi Cloud, the market share of Gree Electric's offline air conditioner sales in 2013 was 33.12%, and the average brand price was 4417 yuan. The market for Oaks' offline sales was only 4.19%, and the average price of the brand was 3,189 yuan. Regardless of market share or price, it is far lower than Gree Electric.

Figure 3: Offline share of domestic air conditioning market

Despite the strong offline channels, Gree's performance in 2019 disappointed the market. Its revenue growth slowed to 2.5% year-on-year, while it increased 32% year-on-year in the fourth quarter of last year. Galaxy International believes that the main reason is the high level of channel inventory after filling the sales channels in the second half of 2018, and also includes some seasonal reasons. Earlier, some analysts said that Gree's 2018 performance growth far exceeds the industry's main reason is the sale of goods to dealers.

Perhaps it has long been smelling the changes in the channel pattern. Oaks has actively changed the mode of traditional offline cargo distribution, basically eliminating dealer sales, changing to Internet direct sales, and having a more flexible price adjustment mechanism. The latest data shows that the first quarter of 2019 Oaks online share was 30.3%, an increase of 6.6%, second only tobeautifulIn second place, while the market share on Gree Online was only 18%, down 6% year-on-year.

Figure 4: Comparison of offline market share of various brands of air conditioners

However, Oaks' online play seems to be quite "rogue", mainly to seize the market through low price and rapid penetration. Although the price of the price is suspected of disrupting the market, it is undeniable that this move has a miraculous effect on the short-term expansion of small and medium-sized enterprises. In the past few years, through the strategy of “low price + online sales”, Oaks has grown into the scale. Second, the overall third air-conditioning brand.

In contrast, Gree Electric, although the offline share is still strong, but it faces the embarrassing situation of weak growth and offline share. Before the Oaks spoiler grew up, the air-conditioning market has always been like a duopoly market for Gree and Midea. CICC believes that Gree's report Oaks reflects the poor fundamentals of the air-conditioning industry and weak market demand, which makes Gree pay more attention to Oaks, which may have threatened the duopoly status of Gree and Midea in the air-conditioning industry.

For the low price of Oaks, many consumers believe that the price of Gree air conditioners is indeed higher than other brands in the market. The gross profit margin of the Gree air conditioners is also higher than that of the industry. The cost of the air conditioner industry is relatively transparent. Conducive to other home appliance companies to benefit consumers.

However, some experts also said that the low-cost route is like Oaks. Although it will be effective and will expand rapidly in the short term, the capital market will like this type of enterprise because it will pay off quickly. But the problem is that the manufacturing industry is not short-term, not cheap, but it is back to the OEM's old path.

At present, Gree’s report on Oaks has attracted the attention of the State Market Supervision Administration and the China Consumers Association. They said that they will promptly dispose of them according to the results of the investigation and verification, and promptly disclose them to the society. (Sina Finance Meteor)

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