After three consecutive years of high growth, since July 2018, the domestic air conditioning industry has taken a sharp turn for the worse, with low market demand and intensified market competition. By 2019, this situation not only has not been alleviated, but also has become more and more intense. “Moving forward under pressure” has become the tone of the development of the whole market.
In 2019, the air conditioning industry entered a downward range, and the overall market pattern was stable
According to the analysis report on the current situation and trend of China’s air conditioning industry in 2019 (hereinafter referred to as the “report”) released by global home appliance network and the national home appliance industry information center, the retail sales of China’s air conditioning market in the first three quarters of 2019 was 170.1 billion yuan, a year-on-year decrease of 4.7%. Overall, the downward pressure on the air conditioning market in the first three quarters was very great.
Market pressure intensifies brand qualifying, forcing air-conditioning enterprises to accelerate product structure adjustment and product quality upgrading. Under such a trend, the pull of medium and high-end air conditioning market is becoming larger, and intelligence and health are becoming the main pull of industry growth. In the middle and high-end market competition, Gree, Midea and Haier have obvious competitive advantages. According to the report data, from January to September 2019, head brands such as Gree, Midea and Haier monopolized China’s air conditioning market. Led by the head brand, the whole air conditioning market pattern is very stable.
The high-end market is “immortal fight”, and Haier is the hard core in the fields of intelligence and health
One of the heavy pressure of the industry, in order to find a new breakthrough point, air conditioning enterprises have accelerated product innovation, spent more energy on studying the reform of air conditioning products, locked in the high-end market, and brought more excellent product experience to consumers through deep excavation in the market segments represented by intelligence and health, so as to stimulate the enthusiasm for renewal. According to the report data, compared with the same period in 2018, the retail sales of 10000 + high-end air conditioning market maintained a stable growth from January to September 2019.
With the vigorous promotion of air-conditioning enterprises, the intelligent mode of the air-conditioning market in 2019 begins to become diverse. From the original single configuration of WiFi module, it has evolved to realize networking and remote control, and then to voice control, infrared induction, etc. new products emerge one after another, injecting vitality into the depressed market. The report shows that the proportion of offline intelligent air conditioning market has increased steadily in 2019, and the proportion of retail sales has reached 55.6%. Among them, Haier, Gree and Midea rank among the top three, and occupy more than 80% of the market share. Since 2019, Haier’s intelligent air conditioner has ranked first in the industry in terms of sales volume and sales for 9 consecutive months.
In addition to intelligence, health is also the focus of air conditioning enterprises. The CPC Central Committee and the State Council issued the outline of the “healthy China 2030” plan, which put forward the objectives and tasks of building a healthy China. The 19th National Congress of the Communist Party of China made major decisions and arrangements for the implementation of the healthy China strategy, emphasizing the importance of prevention, advocating a healthy and civilized lifestyle, and preventing and controlling major diseases. The leading role at the policy level has further improved the health awareness of the whole people. In this context, consumers’ demand for air conditioning products with health functions has increased rapidly. Self cleaning air conditioning is a typical beneficiary. The report shows that by September 2019, the penetration rate of offline self-cleaning air conditioners (retail sales) has reached 61.0%.
Similar to the market pattern of intelligent air conditioning, the dominant position of leading enterprises in the self-cleaning air conditioning market is still prominent. According to the report data, in the overall ranking of self-cleaning air conditioning brands from January to September 2019, with outstanding volume and volume advantages, Haier brand ranked first for nine consecutive months, and the share of retail sales was as high as 50% in September.
To meet the consumer demand of “healthy breathing”, in addition to self-cleaning air conditioning, health air conditioning products with detailed functions such as formaldehyde and PM2.5 are also recognized by the market. In these markets, the trend led by giants is still obvious. According to the report data, from January to September 2019, Haier air conditioner in the offline market won 40% of the market retail sales share in the formaldehyde removal segment; The offline market, excluding the PM2.5 segment, has obtained 50.3% of the market retail sales share, ranking first in the market.
Led by user demand, the air conditioning industry has entered the “big brand” era
Today’s air conditioning market has entered the “user era” from the “product era”. The continuous upgrading of users’ demand for air conditioning is the core driving force for the sustainable development of the air conditioning industry. Especially when the whole industry has entered the stock era and upgrading has become the first driving force to stimulate consumption, users’ demand has become a bright light to lead enterprises to switch from scale competition to quality development. The industrial reform guided by user demand has subverted the original evolution track of air conditioning. To conquer the market and win the favor of consumers, we can only polish good products that meet the diversified needs of users.
It is precisely because the industry’s leading brand took the lead in gaining insight into user needs and innovating around user needs that it has won a sustained leading position in the industry. By returning to users’ needs and meeting users’ personalized needs, it has occupied the forefront of value innovation in the air conditioning industry, won users’ trust in its brand, and formed a unique brand competitive advantage.
The price advantage of high-end market is obvious, and Casati air conditioner ranks first
In the household air conditioning market, the price advantage of high-end air conditioning has been very obvious. The report shows that in the ranking of brand price index in the air conditioning market in 2019, Casati won the top with a price index of 210 and Gree ranked second with a price index of 122. According to the statistics of zhongyikang, up to now, Casati air conditioner ranks first in the field of high-end air conditioner with an annual cumulative share of more than 40% in the household air conditioner market of more than 15000.
Casati air conditioner is a young brand among high-end brands. It is the high-end step together. It can rank first in the fierce high-end market precisely because “each product is born for the user’s pain points”. For example, casadi Yunding air conditioner provides ecological maintenance air to meet health needs; Double temperature zone air supply of tourmaline air conditioner to meet comfort needs; “Conductor” focuses on voice control to meet the needs of convenience. Gree has also upgraded around user needs, and several products equipped with intelligent voice control are favored by consumers.
The analysis shows that in the future, the market share of air conditioning will further concentrate on the leading brands in the industry, and the market competition will further intensify. Leading enterprises continue to bring better application experience to users through continuous innovation, so they have accumulated high brand awareness and good product reputation, which will become a huge advantage in their future market competition.