"Double Eleven" Air Conditioning Market After The Price Reduction Or The Consumption Overdraft.

Unlike the National Day golden week, the air conditioning market was finally "exploded" at double eleven, and GREE was the one that ignited the fuse.

Two days before the double 11, Gree suddenly announced that it would "make profits" 3 billion yuan to crack down on low-quality and fake products, and did not forget to turn over the old accounts after the price reduction and promotion. Dong Mingzhu, chairman of Gree Electric, successfully exploded the air conditioning market with one stroke and two carves, triggering a public rush to buy, which also caught other manufacturers off guard.

As soon as the news came out, Midea, Haier, Hisense, Oakes and other air-conditioning brands were forced to follow up the price reduction overnight, and the air-conditioning war broke out in an all-round way. According to the official data of Gree, Gree Electric broke through billion yuan in just 15 seconds on the day of the double 11, 21 minutes and 36 seconds. Micro-blog, the official air conditioner of the United States, said that the total sales volume of the air conditioner in the United States dropped by 1 billion 930 million at 13:00 and 13:00.

The air-conditioning manufacturers fought hard to wipe out the previous bleakness, but the consumption overdraft, as well as delivery, installation, after-sales and other problems caused by the promotion have become a hidden worry. "Gree's sales promotion is unprecedented. Other brands are forced to take part in the war. The low price has aroused a lot of sleeping demand, but I'm afraid there is only one chicken feather left after the radicalization." A person in the household appliance industry told the 21st century economic report.

Wang Yongtao, deputy director of the White House Business Department of Orville cloud network, said: "for the two or three line brand, double eleven is the main promotion node in the off-season, and it is estimated that it will not give up. But from the current price, it is difficult to follow up comprehensively. No matter it is cost side or promotion resources, it can not compete with the leading enterprises. Double eleven has become the leading brand stage, and the market share of the two or three line and the long tail brand will decline." In his opinion, the recovery of air conditioning market is slow next year, and it is inevitable that some third and fourth tier brands and long tail brands will be eliminated.

"Fight" double eleven

On the evening of November 9, Gree Electric announced that in order to crack down on low-quality and fake products, the total profit of Gree Electric during the "11.11" period was up to 3 billion yuan, and the lowest prices of variable frequency air conditioning and fixed frequency air conditioning were 1599 yuan and 1399 yuan, respectively. The activity will be carried out simultaneously on major authorized e-commerce platforms and more than 30000 Gree stores offline.

Generally speaking, the marketing layout of manufacturers in the double 11 will be carried out a month or two ago, and Gree's sudden move in the two days before the double 11 is to surprise the opponent. "Dong Mingzhu finally made it!" That night, beauty insiders couldn't help sighing.

The head of Guangzhou Gome told 21st century economic news that they didn't know Gree was going to reduce the price until the night of September 9, and then the company immediately launched countermeasures to readjust the promotion price and advertisement of double 11 air conditioner. "We worked overtime two days in the weekend, and we started to adopt the new price one day in advance.".

In order to make the raid go smoothly, Dong Mingzhu even kept his own secret. Relevant personnel of Guangzhou Gree sales branch told 21st century economic news that they had not received the notice before the evening of November 9, "Gree's branches are all over the country, with a large number of people, and the headquarters is also considering this for the purpose of confidentiality, which we all understand.".

Obviously, Dong Mingzhu reserved one or two days for the channel. But for other brands, it's impossible to be indifferent. It is understood that Midea air conditioner issued a notice to all agents, direct dealers and dealers on November 10, emphasizing "initiative attack, daily sales sniper, same day duel", striving to seize the market share of double eleven nodes. From November 10 to November 11, Midea air conditioner made profit and promoted some models. Haier air conditioner's profit giving activity also started on November 10. Hisense air conditioner and AUCs air conditioner's large 1-HP air conditioner all carried out price reduction promotions.

In addition to the price war, the brands have played a "water rack", and many brands collectively besieged GREE, suggesting that GREE's price reduction is to clear inventory. The slogan of "air conditioner is fresh and rejected old stock" has been issued by the US air conditioner. It promises not to sell air-conditioning for more than a year or even half a year, and emphasizes the risks of the old inventory air conditioning, pointing to the high inventory of GREE channel. Haier air conditioner also issued posters, warning consumers to choose the date of production when choosing air conditioners. The poster is a hint that a brand launched a price war to eliminate 6-7 years old products. Hisense air conditioning also warned consumers not to move out of the air conditioner.

As of 14:00 on November 11, according to the real-time air conditioning sales data released by Gome, the sales volume and sales volume of the whole brand of air conditioning have increased substantially. The sales volume of Gree air conditioner increased by 366% year on year, and the order volume increased by 350% year on year. In terms of brand comparison, Gree, Midea and Haier ranked the top three in sales volume.

From Suning's all channel data, as of 17:08, the top three brands of household air conditioning sales were Midea, Gree and Oakes, while from the sales ranking, Gree air conditioning ranked first, followed by Midea and Oakes.

Overdraft or industry worries

In fact, affected by macro-economy and real estate market downturn and other factors, this year's air conditioning market is not good. According to AVC data, in the third quarter of this year, the volume of domestic air-conditioning market fell, with 14.154 million units (sets) of retail sales from July to September, down 4.5% year-on-year; while the retail sales were 45.85 billion yuan, down 9.7% year-on-year. After the second quarter of this year, the retail sales of domestic air-conditioning market fell year-on-year for the second consecutive quarter.

"From the third quarter retail market data, the air conditioning market performance is still weak, while Gree's market share is rising slowly, and the performance is not up to expectations." Wang Yongtao believes that Gree Electric's price cut "raid" is also to sprint to the goal of the whole year.

According to the financial report, in the first three quarters of this year, Gree Electric realized a revenue of 155.039 billion yuan, an increase of 4.26% year on year; the net profit attributable to shareholders of listed companies was 22.117 billion yuan, an increase of 4.73% year on year. The growth rate of income and net profit is lower than that of Midea and Haier.

Especially after Hillhouse capital won the title of Hydrangea and became the largest shareholder of Gree Electric, the beautiful performance can ensure that the management of Gree led by Dong Mingzhu has more say in front of shareholders.

It turns out that Dong Mingzhu's move has a remarkable effect. According to Gree's official data, the double 11 starts to sell in 21 minutes and 36 seconds, breaking 1 billion yuan.

Under the Internet, there are a large number of people visiting the exclusive stores in different regions. "Although the double 11 is Monday, there are a large number of consumers who come to Gome to buy air conditioners in the daytime. Some even ask for leave to come to the store to buy air conditioners. The last time this kind of centralized buying air conditioners happened was during the high temperature period of the whole country last year, which never happened in the off-season. As the activity time is only one day, more consumers are expected to come to the stores in the afternoon and evening. " Gome related people said.

However, the above household appliance industry insiders remind that although the air conditioning market on the 11th of this year's double year is finally boiling under Gree's "surprise attack", brands should pay attention to various follow-up problems after the carnival.

As Gree's price cut is a surprise attack, dealers and channel parties are temporarily notified to change the marketing strategy and layout overnight. Therefore, many consumers who bought Gree air conditioner a few days before the double 11 asked for refund of the difference. Gree Electric issued a subsidy announcement on November 11, and this year, it has purchased corresponding series of subsidies. In addition, as air conditioning is a household appliance to be installed, the promotion volume will face a series of problems such as production capacity, logistics distribution, installation and after-sales, which will bring certain challenges to Gree and other manufacturers who exchange low price for sales volume.

"The promotion of GREE is likely to be a customized model, otherwise the profit of compression is too big to support." In view of the sharp reduction in the price of air-conditioning, some people even expressed concern about the air conditioner market in the late stage. "Double eleven price war has raised the volume, but it also makes the air-conditioning consumption capacity overdrawn. The air conditioning market may continue to be affected in the next few months or even the first half of next year."

According to Wang Yongtao, "in the past three years, the air conditioning industry has entered many long tail brands, the industry's supply exceeds demand, and the contradiction between supply and demand intensifies. The industrial pattern must be reshaped so that the supply-demand relationship can return to a good one. It is expected that some third and fourth tier brands and long tail brands will be eliminated. "