Air-conditioning industry: independent innovation achieves contrarian growth

Thanks to the globalization of market competition, the Chinese home appliance industry has grown rapidly in recent years. Although from the second half of 2011, affected by the economic downturn, the gradual withdrawal of supporting policies, and the tightening of real estate policies, the domestic appliance industry has entered a “downturn”. However, under such circumstances, some home appliance companies to seize the opportunity to carry out industrial upgrading and transformation, adjust the product structure, accelerate the integration of upstream and downstream resources, independent innovation, achievement of the air conditioning industry's "real hero."

First, the air-conditioning industry is facing a severe situation Through a comparison of a set of figures, we can see the serious situation facing the air-conditioning industry. The statistics of the “2012 Refrigerated Annual Air Conditioning Market in China” show that sales volume in the domestic air-conditioning market increased by 31.45% year-on-year in the cold year, and sales increased by 24.13% year-on-year; in the cold year of 2011, the sales of air-conditioners in key cities increased by 20.45% year-on-year. The year-on-year increase in sales was 28.64%. Under the influence of market pressure, inventory pressure, and poor policy convergence, in the cold year of 2012, the domestic air-conditioning market sales fell by 25.12% year-on-year, and sales decreased by 19.36% year-on-year. %.

According to Cai Ying, Assistant Director of the Information Resource Development Department of the National Information Center, the main reason is that changes in the overall economic environment and relatively conservative spending have resulted in suppression of the release of consumer power, weakened policy support, weakened public consumption levels and the desire to upgrade. The pre-stimulus policies overdrawn consumer demand, and real estate control policies continued to curb demand releases, causing a rapid decline in the sales volume of the domestic air-conditioning market in the cold year of 2012.

Wang Lei, deputy director of the China Household Electrical Appliances Association, predicts that the air-conditioner industry is unlikely to reproduce the rapid growth of previous years. The overall market environment in the cold year of 2013 will not be significantly improved.

II. Breakthroughs in the transformation and upgrading of enterprises In the past few years, the United States has maintained high growth. After the industry began to withdraw from the industry, such as the highs and lows of the industry, and energy-saving and benefit-related subsidies, they faced severe difficulties and challenges. However, since the second half of last year, the A strategic transition was proposed in due course. From the emphasis on speed, it was proposed to improve the quality of operations, improve operational efficiency, strengthen product quality, and strictly control corporate risks. As can be seen from the recently released three quarterly reports, the effect of the transformation and upgrading of the United States has become apparent. The gross profit margin of products has steadily risen, the cost rate has decreased significantly, and the product structure has also been significantly improved.

It is not just the United States. Chigo, who had previously relied heavily on the policy, encountered temporary difficulties after the air-conditioning energy-saving benefits subsidy policy was withdrawn. At the beginning of this year, Chigo made adjustments to the board of directors and replaced it with a "technical strongman." With technology-driven innovation, it launched the world's first cloud air conditioner. Hisense Kelon has also achieved effective market share improvement by adjusting product mix, technological innovation, functional upgrades, and increasing the proportion of high-end products while market demand continues to slump. At present, it has seen results, sales revenue and gross profit in the third quarter. Interest rates have increased significantly.

3. Gree's independent innovation contrarian growth In a downturn in the industry, Gree Electric Appliances maintained its “outstanding” and handed in a dazzling transcript. The Gree’s third quarterly report released yesterday showed that Gree’s total revenue reached 77.16 billion in the first three quarters. Yuan, a year-on-year increase of 20.43%, and net profit of 5.33 billion yuan, a year-on-year increase of 41.34%. The trend is growing steadily, and the development momentum is clearly better than that of peer companies.

"There is no problem in achieving 100 billion yuan sales this year." Dong Mingzhu, Chairman and President of Gree Electric Appliance Co., Ltd., as always, was confident when interviewed by Nanfang Daily. Dong Mingzhu said that Gree recorded almost the only contrarian growth in the industry. In fact, there is no mystery. "It is because we have long been increasing investment in R&D, insisting on independent innovation, and focusing on product quality, and we have won a reputation among consumers." The company pays close attention to management, gives full play to the company's production capacity, logistics distribution, and scale advantages, continuously reduces production costs, increases the export intensity of its own branded products, and further enhances the company's overall profitability."

Especially in the current period of a new round of changes in the international manufacturing pattern, the transformation and upgrading of manufacturing industries, and the urgent need to reposition China's industrial image, how to take advantage of technological innovation to win the position of Chinese manufacturing in the international arena, Gree Electric Appliances Experience is worth learning from many manufacturing companies.

After the rapid growth of the industry and enterprises, Gree resisted the temptation to expand and persisted in the path of air-conditioning specialization. Dong Mingzhu said that the diversification strategy can create more future roads for enterprises, but it will also decentralize the energy and financial resources of the company. The air-conditioning market has always been there and new technologies are emerging. As long as Gree has mastered the core technology, it has been mastered. Competitive Advantage.

According to the growth of this year's performance, Gree’s 2012 revenue of more than 100 billion yuan has reached a foregone conclusion. This is the third household electrical appliance enterprise after Haier and Midea, with annual revenue exceeding 100 billion yuan, but the difference is that Gree will It is a company that is relying on a single category to achieve 100 billion yuan, which will be a new historical breakthrough for the Chinese home appliance industry.