Changes in the Brewing Pattern of Gree Bow Air Conditioning Market

165438+1On the evening of October 9, Gree Electric officially announced that it would make a profit of 3 billion yuan to crack down on low-quality and shoddy products during the double1/kloc-0 period, and immediately return the original price after the activity. The strength of this price cut is rare for Gree. After the news was announced, Midea, Oaks and other brands also followed up the price reduction measures.

Experts pointed out that behind Gree's "bow", it is not only related to the high inventory and the country's switch to new energy efficiency next year. More importantly, with the sudden emergence of Oaks air conditioners, the air conditioning market has entered the stage of direct sales with high quality and low price, and the new era of Gree, Midea and Oaks has also been fully opened.

price war

It is probably not an exaggeration to describe this year's double 1 1 air conditioning price war with blood.

According to the official announcement issued by Gree, Gree will give back to consumers with excellent models and the most favorable prices. The lowest 1.599 yuan for inverter air conditioners and 1.399 yuan for fixed frequency air conditioners, with a total profit of 3 billion yuan. The event will be launched simultaneously on major authorized e-commerce platforms and more than 30,000 offline Gree stores, with uniform prices. The activity is limited to the period of "11.11",and the original price will be restored after the activity.

In fact, this is not the first time Gree has cut prices to make profits, but this price drop is unprecedented for Gree, who was "above the top" before. In Gree's self-operated flagship store in JD.COM, the lowest-priced fixed-frequency air conditioner is 2049 yuan, and the lowest-priced inverter air conditioner is 2498 yuan.

After Gree announced the news of price reduction, Midea, Oaks, Haier and other manufacturers followed suit. Based on various posters and news, we can see that the price of Gree Double 1 1 air conditioner is 1399 yuan, Midea is 1299 yuan, Haier is 1299 yuan, and Oaks is 165439 yuan. For air conditioners with variable frequency 1, the price of Gree Double 1 1 is 1599 yuan, that of Midea is 1499 yuan, that of Haier is 1499 yuan, and that of Oaks is 1399 yuan. Fixed frequency 2 air conditioner, Gree double 1 1 sells for 2899 yuan, Midea sells for 2699 yuan, and Haier sells for 2999 yuan. Everyone seems to be tit for tat, but the price of Oaks is always the cheapest.

spoiler

There are also different opinions in the industry about the reasons why Gree air conditioners have cut prices on such a large scale.

Some people think that the price reduction of Gree air conditioner is related to its high inventory. In addition, the country will switch to new energy efficiency next year, which will also have a greater impact on Gree air conditioning. Gree Electric's financial report shows that from 20 14 to 20 18, Gree Electric's inventory amounts were 8.599 billion yuan, 9.474 billion yuan, 9.025 billion yuan,165.68 million yuan and 201200 million yuan respectively, showing an increasing trend year by year. 20 16 -20 17, its inventory increased sharply. In the first quarter of 20 19, the inventory in Gree Electric was 2121500 million yuan.

Of course, the reason for more discussion comes from the highlight of the industry-Oaks. With the fierce competition in the air-conditioning industry, offline opportunities are becoming less and less. In recent years, Oaks took the lead in proposing the intelligent Internet strategy, which won the market at a lower price by reducing intermediate links under the premise of ensuring product quality. In this case, at the beginning of this year, Oaks initiated the "Internet Direct Selling" model, invited Bo Huang, a star, to endorse it, and shouted the slogan that "the factory directly supplies the terminal, and there is no layer-by-layer agent to increase the price".

According to industry insiders, under the air-conditioning network direct selling mode, the product comes to market faster, and the terminal inventory is very small, because the manufacturer directly supplies the terminal, which saves a lot of intermediate expenses. According to the data, from 2065438 to the first 22 weeks of 2008, the average online product price of Oaks air conditioner was 27 14 yuan, which was lower than the online average price of 3,029 yuan.

It is precisely under the strong spoiler of Oaks that the price reduction of air conditioners has become a trend. According to the data released by Aowei Cloud, in the first half of this year, the average price of first-class energy-efficient air conditioners dropped significantly, and the overall market price dropped by 1. 1%. The prices of fixed-frequency hanging machines, cabinets, variable-frequency hanging machines and cabinets have all decreased, with the average first-class hanging machine decreasing by 5. 1% and the first-class cabinets decreasing by 5.4%.

legend of the three kingdoms

According to relevant analysis, after Gree's price reduction, the air-conditioning industry will also usher in a new wave of reshuffle, and the market concentration will be further concentrated. Gree, Midea and Oaks will also usher in the Three Kingdoms Kill Pattern.

With the post-80s, post-90s and post-00s gradually becoming the main consumer, the continuous growth of the online market is in sharp contrast with the continuous shrinkage of the offline market. In the first half of 20 19, the domestic online air conditioner sales volume was14.22 million units, up by 21.3% year-on-year; The sales volume of offline air conditioners was 6.5438+0.948 million units, down 9.4% year-on-year. On-line air-conditioning sales were 41400 million yuan, up 18.4% year-on-year, and offline sales were 72.3 billion yuan, down 10. 1% year-on-year.

Gree has always relied on a huge distribution system, and the online layout is insufficient, so it is surpassed by Midea and Oaks online. In the online market, in the first 22 weeks of this year, Midea ranked first with a market share of 30.59%, Oaks ranked second with a market share of 28.29%, and Gree ranked third with a market share of 18. 13%.

It should be pointed out that some industry observers pointed out that it is reasonable for Gree to cut prices to cater to online development. However, Gree's offline agents have always been relatively strong, and they need a certain margin. A substantial price reduction promotion will inevitably affect them. "Then why did Gree only have one day of this activity, and then immediately adjusted the price back, which just hit the market at a low price? It can't really change the market structure. "

In terms of beauty, since March this year, Midea's shopping malls in Suning.cn and JD.COM have taken the lead in raising the banner of price reduction. The prices of some products have reached the level of Oaks. Obviously, Midea has already felt the pressure of market contraction in advance.

While continuing to put pressure on Gree, Zheng Jianjiang, chairman of Oaks, put forward a clearer brand positioning for the Internet. Air-conditioning direct sales finally made "20 19 price war a big drama". It is reported that Zheng Jianjiang has put forward a three-year development goal: by 2022, Oaks' next goal will become Gree.