The air-conditioning industry enters the off-season, the market demand is sluggish, and the industry price competition is fierce

Entering September, the air-conditioning market has also entered the off-season, and market demand has gradually languished. However, it is worth mentioning that in the cold year of 2018, China's air-conditioning industry set a new record again, and the three consecutive years of high growth gave the industry a shot of "stimulant". And how will the future air-conditioning market develop and continue its brilliance? It has become the focus of everyone's attention.

The air-conditioning industry enters the off-season, the market demand is sluggish, and the industry price competition is fierce

Entering the off-season, market demand is sluggish, and industry price competition is fierce

According to data from Zhongyikang, in the first half of 2018, the air-conditioning market reached 131.2 billion yuan, a year-on-year increase of 19.8%. Outstanding performance in the first half of the year. The air-conditioning industry has continued to grow year after year, and a very important reason is the high temperature weather in recent years. Especially in the summer of this year, the high temperature weather in my country showed the characteristics of extreme high temperature, many days, and large area. Affected by the "high roast", the Northeast region, where the air-conditioning penetration rate is low, is also selling hotly. Therefore, there is no doubt that air-conditioning is a typical industry that depends on the weather.

Li Xinghao, Chairman and President of the Chigo Group, said in an interview that in the past cold year of 2018, Chigo had already exceeded its full-year mission targets for the cold year of 18 two months in advance in the first half of 2018, as early as May in many regions across the country. , Chigo's domestic sales of air-conditioners were 3.3 billion, an increase of 10% year-on-year. In the areas along the Belt and Road, it has even taken a 10% market share. In the overseas market, it will maintain a 10%-20% growth in the future.

So, what are the signs of the development of the air-conditioning industry in the second half of the year? According to AVC monitoring, the cumulative online market for air-conditioning retail sales increased by 8.1% from the 31st to the 35th week, while the offline market fell by 3.0%. The market performance throughout August was unsatisfactory.

Affected by the weak growth in market demand, price competition in the industry has become more intense. Gree’s Cool King 3rd-generation 26 first-level energy-efficiency model launched in September is priced at 3499 yuan, which is much lower than the overall average price of models with the same specifications. As for the 2019 market, home appliance expert Liu Buchen said that due to inventory pressure, there may be negative growth in the cold year of 2019. “The current industry inventory has climbed to about 50 million sets.” The cold year of 2019 may bring a new round of price wars. .

Based on this, the person in charge of Hisense air-conditioning launched the "Hisense Comfortable Inverter Popularization Action" in due course. "With the dual blessing of popular IP and product upgrades, it effectively enhances brand pull and accelerates the realization of user value." Wang Yunli, general manager of Hisense Air Conditioning, said: "This popularization takes the third-generation comfortable inverter air conditioner X as the pioneer, through the series of comfort The creation of frequency conversion products and market activities have set off a round of product comfort quality upgrades in the industry."

According to Beijing Zhongyikang Times Market Research Co., Ltd. analysis, the air-conditioning market still maintained a strong growth momentum in the first half of the year, but the air-conditioning market has cyclical characteristics. In the medium term, the macroscopic and real estate trends that affect the air-conditioning scale cycle are declining, and the market will enter A window period for a comprehensive upgrade.

Market competition upgrades to high-end and channel sinking is the direction

At present, despite the good performance of the air-conditioning market in the first half of the year, it cannot be denied that this year’s air-conditioning inventory has also set a record. In addition to the price war, home appliance expert Liu Buchen believes that the air-conditioning industry market is becoming more and more differentiated. The big growth points are high-end products and the third, fourth, and fifth-tier markets.

At present, the air-conditioning market in first- and second-tier cities is becoming saturated. Air-conditioners mainly come from new upgrades and the demand for more air-conditioners. The increase in air-conditioning is relatively limited. For the third, fourth and fifth tier cities, the popularity of air conditioners before is far less popular than the first and second tier cities. With the process of urbanization, more rural residents enter urban life and the improvement of living standards. People's demand for air conditioners has been increasing, which has become a stimulus. The driving force for the growth of the air-conditioning industry.

As in August, the domestic weather was not as hot as last year. Perhaps due to the lessons of the previous price war, now facing the air-conditioning industry’s inventory setting a new record, Gree no longer talks about price wars, and chooses to expand at the moment. Tier 3, 4 and 5 cities with development potential. Gree has an advantage in expanding the third, fourth, and fifth-tier cities. It has been the largest air-conditioning brand in China for more than 20 years, and it is much higher than that of small and medium-sized air-conditioning companies in terms of air-conditioning quality, technology, and services. Gree enters these The market conforms to the trend of consumption upgrade.

In the high-end field, air-conditioning companies are also looking for breakthroughs. It is vital to make technological innovations, especially those aimed at users' pain points. For example, the formaldehyde problem that everyone is concerned about at the moment is a good point of innovation.

To this end, Chigo launched the Smart King 5th generation on-hook series. According to Chigo's introduction, some of the new products launched this time have the functions of removing formaldehyde and self-breathing negative oxygen ions, which attract consumers with this feature. It is reported that the 5th generation of Smart King has achieved full compliance with the formaldehyde removal function of air-conditioning products. In the test of the national authoritative organization SIMT Shanghai measurement test, the efficiency of formaldehyde purification can reach 40%-45%! It far exceeds the national standard of formaldehyde purification rate ≥25%.

In addition, the market for self-cleaning air conditioners is also huge. From January to September 2017, self-cleaning air conditioners accounted for 11.3% and 14.0% of the market’s retail sales, respectively. Gree, Haier, Hisense, etc. Brands have been invested in it to promote the booming development of the self-cleaning market. At present, there are more and more products with the main selling point of air-conditioning comfort function. Among them, the more representative ones are the humidity control and Midea promoted by Haier, Hisense, and Gree, and the comfortable hair dryer led by Haier. The two major selling points are promoted by the main brand to make comfortable Chemical air conditioners have entered the explosive phase of sales.

According to experts’ predictions, brand competition in the air-conditioning industry in the new cold year will become more fierce, and the structure of air-conditioning products will be further adjusted. The proportion of mid-to-high-end products will continue to rise. The investment in technology research and development and innovation will increase. Should go hand in hand to allow air-conditioning companies to form a completed closed loop and seize more market share.

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