Epidemic situation, price war, new energy efficiency national standard, air conditioning rivers and lakes encounter multiple variables？
Epidemic situation, price war, new energy efficiency national standard, air conditioning rivers and lakes encounter multiple variables?
Entering April in previous years, it is the peak season for air-conditioning sales, but this year’s air-conditioning market is facing more unknowns.In March 29th, Gree Electric Chairman Dong Mingzhu said in an interview with CCTV that the epidemic had a serious impact on Gree and the entire air-conditioning industry, and Gree lost 20 billion in revenue in February.In fact, in the face of the impact of the epidemic, Midea, Gree and other manufacturers in the air-conditioning market have launched a sales clearance model since the first quarter of this year.If the epidemic only affects the current performance of the manufacturers on the right, the pressure on the performance of the second and third-tier air-conditioning manufacturers is not a matter of two days.On March 28, Changhong Meiling’s 2019 financial report showed that last year’s net profit was 56.44 million yuan, an annual increase of 46%, but the air-conditioning business exceeded 100 million.This is also the epitome of the survival of domestic second and third-tier air-conditioning brands.The variables in the air-conditioning industry are much more than this year.The new national standard for energy efficiency, which will be implemented on July 1, will also have a profound impact on this industry.The air-conditioning market in 2020 is destined to be unusual. Can the new national standard for energy efficiency set off a “replacement wave”?What crisis machine is hidden in the variable?Under the epidemic situation, air-conditioning sales are on the rise again. “The first quarter report must be unsightly, but I believe it will be transformed soon.”” On March 29, Dong Mingzhu disclosed that the February sales data was synchronized and made such a pre-judgment.Behind this, some Gree air-conditioning dealers in some provinces have already launched promotional activities such as live spikes.Tmall, JD.com, Suning and other platforms show that some Gree air conditioners with variable frequency first-level energy efficiency hooks have recently been reduced in price by more than 200 yuan.There is more than just Gree to launch a new round of air-conditioning promotion.Recently, American air conditioners have launched social marketing, including online live broadcasts, WeChat spikes, and online promotional events.CICC reported that during the epidemic, Midea increased its market share through local social marketing. From February 3 to March 1, Midea ‘s air conditioners accounted for as much as 48% and 42% of offline retail sales.”Some air-conditioning brands have carefully adjusted prices, which is normal.Our activities have not stopped, and various online gameplays have been done.The overall market will be affected by the epidemic in the first half of this year, but basically there will not be too many problems.”Earlier ago, Yin Bitong, vice president of Midea Group and general manager of the home air-conditioning business department, said this in an interview with the media.Indeed, as Yin Bitong said, the promotional activities in the field of air conditioning have not stopped, and the price wars caused by the transformation have followed one after another.On the eve of the Double Eleven in 2019, Gree Electric reported that the profit was 3 billion yuan, and the price reduction and promotion of the “Junyue” and “T Shuang” series of products were repeated, and it has been increased for many times since then.This move was interpreted by the outside world as Gree to use a price war to block the Internet air-conditioning brand Oaks from driving online into the market.Sauna, Yewang noted that Gree’s 2019 price reduction compensation, alternative channels need to go through Dong Mingzhu’s e-commerce platform.To proceed, Dong Mingzhu told the sauna and Yewang, “I think the perfect combination of online and offline is the best service in the future.”Gree’s price reduction promotion has attracted other brands to follow up. Midea, Haier, Hisense, and Skyworth are not far behind.South China’s home appliance distributors admitted to Sauna and Yewang that sales of air conditioners will decline in 2019, and operations will face challenges.Gree air-conditioning price reduction promotion, offline channels and e-commerce at the same price, the pressure on offline stores is expanding, and the profit space of expanding dealers is expanding and shrinking. “If you do not participate, you will not make money, then everyone will participate with the utmost urgency.”The prosperity of the air-conditioning industry declined last year, and the air-conditioning industry is showing signs of fatigue under the changing epidemic situation.Industry online data shows that 4.92 million units of air conditioners were sold domestically in January this year, an annual increase of 33.8%.According to data from Aoweiyun.com, the sales volume, retail volume and average price of air conditioners in January were -30 respectively.9%, -22.3% and -17.4%.In fact, the domestic air-conditioning market has already experienced ups and downs in 2019. According to data from the China Household Electrical Appliances Research Institute and the National Household Appliance Industry Information Center, the domestic market of the household appliance industry in the first half of 2019 was US $ 412.5 billion, a decrease of 2.1%, even the retail sales of washing machines and small appliances have risen several times, but the air conditioners and refrigerators have shown an offset trend.Sauna, Yenet note, Gree Electric’s 2018 financial report shows that air conditioning revenue is 1556.At 8.2 billion US dollars, the air-conditioning business of Haier and Midea failed to meet Gree’s revenue, and its air-conditioning revenue and net profit were still far ahead.But entering 2019, the industry competition is becoming increasingly fierce.In the spring of 2019, Midea’s air-conditioning price reduction promotion and expansion have been significantly improved.Gree’s 2019 semi-annual report shows that revenue for the first half of the year was 793.2.5 billion, an annual increase of 4.62%.Under the ranking, Midea’s air-conditioning business performed well, with HVAC revenue of 714 in the first half of the year.39 trillion US dollars, an annual increase of 11.84%.The difference in revenue between the two parties is less than 8 billion, and in the same period of 2018, there is still a gap of nearly 12 billion.It is worth noting that Haier Zhijia’s air-conditioning business is obvious, with revenue of 179 in the first half of 2019.$ 5.1 billion, a ten-year average of 6.55%.In addition, in the first half of the year, players in the second camp of the air-conditioning market also received revenue, including Changhong Meiling and Hisense Appliances, which owns two brands, Hisense and Kelon.In June 2019, Gree reported Oaks.Subsequently, Gree Electric launched a “price war” for air conditioners in the “Double Eleven”.Aowei Cloud (AVC) pushed the total data to show that the retail volume of China’s air-conditioning market in January-November 2019 was 57.05 million sets, an annual increase of 5.0%, retail sales of 188.4 billion yuan, a decrease of 1 each year.2%.On March 28 this year, Changhong Meiling released its 2019 financial report to show revenue of 165.5.3 billion, decreasing by 5 every year.36%; net profit of 56.44 million yuan, an increase of 46% per year; air-conditioning business achieved operating income of about 59.0.9 billion, down by 12 every year.81%, there are 2 subsidiaries with main air-conditioning business with a net deficit of 1 in total.3.3 billion yuan.Industry analyst Major General Ding pointed out that there are three reasons for the price war of air conditioners: one is that the 2019 cold year inventory will remain at a high of nearly 50 million units, and low-price destocking has become a routine means;Time sales do not meet the low energy efficiency air conditioner of the new national standard; third is the overall pattern of market demand. The brand on the right intends to promote the brand “clearance” through price wars at this stage to further increase brand concentration.”In 2019, the entire air-conditioning market was very sluggish, with some months shrinking and the entire market slumping.The actual downturn, the sales volume of air conditioners has decreased, and the inventory of air conditioners has remained high. Therefore, in order to survive and improve performance, companies must transform through price wars.”Introduced by Liang Zhenpeng, an analyst of the home appliance industry.”The superiority and inferiority elimination effect of the new national standard of energy efficiency The recent promotion of some air-conditioning brands is also inseparable from the introduction of the new national standard of air-conditioning energy efficiency.At the beginning of 2020, the new national standard for energy efficiency of home air conditioners, GB21455-2019, “Limited Values and Levels of Energy Efficiency of Room Air Conditioners,” was officially released to unify the evaluation and evaluation nuclear system for fixed-frequency air conditioners and inverter air conditioners to further improve the index requirements for each energy efficiency level.The new version of the standard 1 level energy efficiency index benchmarking international, the energy efficiency access requirements for inverter air conditioners (level 3) are basically equivalent to the access requirements of the European Union and the United States. The energy efficiency access index is 1 level higher than the original standard, which is equivalent to 2 of the original frequency conversion standardlevel.The energy efficiency access requirements for fixed frequency air conditioners (level 5) are approximately equivalent to the original standard energy efficiency level 1 requirements, and the energy saving and environmental protection effects are significant.Cheng Jianhong, an indicator of the China National Institute of Standardization, said that after the implementation of the new standard, energy efficiency is expected to increase by 14% in 2020 and 30% by 2022. The existing low-energy, high-power fixed-frequency air conditioners and variable-frequency three-level energy efficiencyThe following air conditioners will all be eliminated, with a market elimination rate of around 45%.According to the person in charge of Haier Air Conditioning, after switching to the new energy efficiency standards, the energy efficiency ratio of the air conditioner will be improved and the cost performance will be higher.Specifically, this type of household air conditioner is at least 10 years old, and replaced with Haier’s latest energy-efficient inverter air conditioner. It saves about 2 yuan per day, and 3 years can save one air conditioner.A new national standard for air-conditioning energy efficiency has been introduced, with possibilities and challenges coexisting, or it will allow the differentiated development of various brands to survive.Gree air-conditioning is intelligent, beautiful air-conditioning deeply cultivates “no wind sense”, Haier air-conditioning loves “new wind”, Hisense air-conditioning loves “empty”, and Changhong air-conditioning likes “silent”.At the end of December 2019, Skyworth Air Conditioners released a new breeze product.With the outbreak of the epidemic, the concept of healthy home appliances has become popular, and various enterprises have also vigorously promoted air-conditioning products with “no wind sense”, “new wind”, purification and sterilization, and high temperature sterilization.Zhao Meimei, general manager of Aowei Cloud’s white goods business division, believes that in the future reorganization, the release of fixed frequency products and frequency conversion three-level energy efficiency products will also become the primary task of air-conditioning companies.In addition, from the perspective of consumer demand, air conditioners equipped with health and comfort functions will be well received by consumers, and market demand is clearly improving.海信空调总经理别清峰表示，“此次能效标准的大幅提高，意味着大批低质的存量产品将被淘汰，缺乏技术积累的企业将无法满足用户对品质的追求，并有可能终结业内‘低质低价’价格战的怪圈。”The preparation of new energy efficiency is a process, and some companies have already prepared for the new energy efficiency in 2019.”At the end of 2019, Haier, Changhong, Skyworth, Hisense and other brands have all released their own new energy efficiency products.For first-line brands, technology is not a problem, but the release and implementation of new standards is expected to raise the threshold of the air-conditioning industry. For some small and medium-sized brands, how to compete with the TOP brand in the future poses higher challenges.The competitive landscape will further concentrate on the right brand.”Zhao Meimei said.”Sauna, Ye Wang Chen Weicheng Editor Zhao Ze proofreading Zhang Yanjun