In the cold air of 2011, air-conditioning companies compete for the dominance of the 3rd and 4th markets

For air-conditioning companies, the tertiary and tertiary markets are like a huge reservoir. "The future market growth is more and more dependent on how much water can be released in this pool." An air conditioner company manager said.

However, this market not only made them look forward to, but they were helpless. Compared with color TVs, refrigerators, and washing machines, air conditioners did not initially belong to the basic needs of the consumer groups in the market, but they were only a luxury product, and its penetration rate was always lower than other categories. With the rising consumption level and the pull of home appliances to the countryside, the cold weather in 2011 has finally ushered in the third and fourth-tier air-conditioner markets. Wang Jinliang, Vice President of the China Refrigeration Appliance Group's China Business Division, said that the future three or four-tier market will occupy more than 50% of the air-conditioning industry's market share.

2011 Cold Year Outbreak

The tertiary and tertiary markets have an important influence on the steady growth of the domestic air-conditioning market.

Due to the influence of factors such as the level of demand, spending power and supporting conditions, at the beginning of home appliances to the countryside, air-conditioning products have not been placed on high hopes. In the 2009 countryside products, air-conditioning sales accounted for only about 9%, much lower than refrigerators, washing machines, color TVs and other products.

In the cold year of 2011, the above-mentioned situation has been completely changed. Ovid Consulting's data shows that in the cold year 2011, the air-conditioning industry achieved 10.15 million units of terminal sales in the third and fourth-tier markets, up 66.2% year-on-year, and its share of the total market sales also rose by 4 percentage points, exceeding 20%.

Industry online analyst Soo Xiaofang believes that there are two main drivers for air conditioners in the third and fourth-level markets: First, the infrastructure for rural infrastructure has been gradually improved in recent years, farmers’ income levels have been continuously improved, and the climatic environment and living environment have gradually improved; It is the cultivation of home appliances to the countryside.

In 2012 when the industry is sluggish, when consumer demand in the primary and secondary markets gradually becomes saturated, the tertiary and tertiary markets will have an important impact on ensuring the domestic air-conditioning market sales scale and supporting the steady growth of the market.

According to the estimates of the China Household Electrical Appliances Association, the average annual demand for air conditioning in the rural market will reach 8 million units during the 12th Five-Year Plan period. An industry source told the "China Electronics News" reporter: "This figure is conservative. In 2011, the market's sales have already approached 15 million units." According to statistics, as of the end of 2010, air-conditioned rural families owned by 100 households. The amount is 16 units, which is equivalent to the level of urban households in 1997. The purchasing power of rural households has been the same as that of urban households in 2002. According to his analysis, with the deepening of new rural construction measures such as the increase of farmers' income and the transformation of rural power grids, and the impact of urban and rural population movement on rural family life and consumption habits, the consumption demand of air conditioners in the tertiary and tertiary markets will continue to be released. .

“How to release the consumption potential of the third and fourth-tier markets has become the key to the development and even survival of the majority of air-conditioning companies,” said Cai Ying, Assistant Director of the Information Resource Development Department of the National Information Center.

Increasing frequency

The rural market will become the main growth point for the development of inverter air conditioner market.

"Home appliances to the countryside policy is still available." Soo Xiaofang pointed out. This point was reflected in the bidding of home appliances to the countryside at the end of last year. Although it was the last bid before the home appliances policy was withdrawn from the countryside, the number of participating companies has not decreased, but new faces such as Soy and JP have also emerged. This contrasts sharply with the reduction of refrigerators and washing machines participating in bidding.

A second-line air-conditioning company official told reporters that home appliances to the countryside to open up the third and fourth-level markets really have a great role in promoting, especially after the rural air-conditioning sales limit increases, the number of successful companies increased, product coverage is broader, "From this year From the perspective of home appliances to the countryside, there will be promotion for sales.” However, he also admitted that due to the country’s implementation of a limit system for the rural areas, this promotion is limited, especially for large companies.

Wang Jinliang believes that relative to the expansion of the market size, enterprises should pay more attention to the changes in the product structure of the third and fourth-tier markets. Cai Ying holds a similar view. In his opinion, the rural market will become the main growth point for the development of the inverter air conditioner market, and the inverter air conditioner is also expected to become the mainstream product in the rural market. The change in product structure is more meaningful than pure market growth, and it is even more prominent in improving the level of domestic air-conditioning technology.

According to industry sources, inverter air conditioners entered the “Home Appliances to the Countryside” list for the first time in 2010, and the continuous improvement of energy efficiency standards for fixed-speed air-conditioners and subsidies for energy-saving and public-private projects has reduced the industrial balance to inverter air conditioners. The reporter learned that the concept of consumerism that takes place one step at a time works. The acceptance of inverter air conditioners in the third and fourth-tier markets is even faster than that of the secondary and secondary markets.

As a flag-bearer pushing the popularity of variable-frequency air conditioners, the United States earlier sniffed business opportunities. According to Wang Jinliang’s introduction, as early as in 2010, national home appliance product bidding, 31 of the 80 main model air conditioners won the bid were inverter air conditioners. Today, the sales of inverter air conditioners in the United States exceed 70% from the third and fourth-tier markets; the head of Haier Group's air-conditioning products division told reporters that Haier air-conditioners have achieved good sales in the third and fourth-tier markets and launched some low prices for the rural market. The price of inverter air conditioners reflects the market's good performance. The company also expressed that it is optimistic about the great potential of frequency conversion in the rural market.

Channel key

Leading companies compete for channels or accelerate market reshuffle.

Liu Yong, deputy general manager of Suoyi Electric, told reporters that the significance of home appliances to the countryside for air-conditioning companies lies in laying a road for the distribution of rural markets. Since the implementation of the home appliances to the countryside policy, many home appliance companies, especially domestic well-known large-scale enterprises, have implemented differentiated services in light of the consumption characteristics and consumption levels of the third and fourth-tier markets, and have been tilting in research and development and investment.

Haier Air-conditioner will deliver the ancillary services to the countryside along with the air-conditioner, and the delivery service guarantees 24-hour delivery. In addition to air-conditioning products, which are all tailor-made for the rural market, the United States has also launched rural service speed-ups and has ordered a large amount of money for this purpose. 5000 "home appliances to the countryside for special work vehicles"; Chigo sticks to the market and launched a "tea air conditioner" for tea farmers.

An analyst told reporters that in order to truly share this big cake in the third and fourth-tier markets, it is necessary to “deeply distribute and increase the coverage of products.” Prior to this, the relevant person in charge of the Chinese and Yikang said in an interview with reporters that the future of the company The channels in the tertiary and tertiary markets will further sink, and the main service network will be extended to the township level.

In 2011, more than 70% of the domestic rural air-conditioning market was divided by Gree, Midea and Haier. The competition among these three giants for channel dominance is also fiercest. At present, Midea Air Conditioning has over 30,000 sales outlets nationwide and 15,000 integrated stores, most of which are concentrated in the third and fourth-tier markets; Gree's stores have more than 10,000 stores in the three and four markets. Most of the income comes from here; Haier has expanded, and its county-level and township-level stores owned by Riri Shun have covered more than 80% of the country's townships. The data shows that the annual sales revenue of a county-level specialty store is about 3 million yuan. According to a company that has 1,000 county-level stores nationwide, its annual income is at least 3 billion yuan, and it can also be used to see why the channels of the 3rd and 4th markets are so popular.

In the interview, the reporter found that the second-tier brands are subject to multiple constraints of strength, products, sales network, and services, and lack of planning and effective investment in the development and expansion of rural markets. Suo Xiaofang reminded that as the industry giants vigorously expand sales outlets in the third and fourth-tier markets, the market's brand concentration will further increase, which may accelerate the market reshuffle.