Gree has been sitting firmly in the position of "air conditioning brother" in China for 24 years, but in 2020, Gree fell to the altar, and the United States chased after the victory, but fortunately, Dong Mingzhu changed its development strategy in time and achieved a perfect turnaround in 2021, so how did Dong Mingzhu turn the tide?
During the first half of 2021, Midea, whether in the online or offline air conditioning market, has undoubtedly surpassed Gree and ranked first, and the development of Gree is somewhat worrying, but now it seems that this worry is also superfluous, because in the first three quarters of this year, Gree's share in the air conditioning market has reached 36.4%, successfully surpassing Midea and returning to the first position of air conditioning.
Although looking at the market share between the two sides, Gree can only be regarded as a narrow victory, compared with the share of the United States, it is only 3.3% more, but this is bound to be a big progress for Gree itself, after all, it is finally back to the peak with its own strength.
In fact, Gree can surpass midea with 36.4% share this time, mainly because Dong Mingzhu turned the tide in time, we all know that gree sales points were mainly concentrated in offline physical stores, which is also a major reason for its performance decline, so Dong Mingzhu began to increase the layout of the online market.
In addition to his own appearance to personally live stream with goods, but also his secretary Meng Yutong also brought to the live broadcast with goods in the team, a time to earn enough eyeballs, compared to the United States, gree in recent times is indeed more concerned, and Dong Mingzhu's operation, but also for Gree air conditioning found a new growth space.
In addition, Dong Mingzhu also has a measure, but also to a certain extent to promote the increase in air conditioning sales, Gree made it clear to the outside world that the air conditioners sold from March 1, 2021 can provide them with 10 years of free refund services, and the old users of Gree can also replace the old with the new.
At that time, the news came out, but also let many people have some surprises, after all, now the United States, Oaks and other mainstream air conditioning companies, its warranty period is about 6 years, but Gree directly increased it to 10 years, in the case of providing better service, it will naturally attract more consumers.
When the good news came from the air conditioning industry, Gree also made great progress in car manufacturing, Dong Mingzhu changed its name to Gree Titanium after taking yinlong with all its strength, just in the first 11 months of this year, Gree Titanium's car sales have reached 1813 vehicles, up 171% year-on-year.
Not only that, in September 2021, Gree Titanium in China's new energy bus market, but also by virtue of its own strength successfully ranked among the top three in the industry, the status is second only to Yutong Bus and BYD, Gree as a new entrant in the industry, can achieve this achievement, it is indeed amazing.
Although it is undeniable that Gree Titanium cannot bring practical benefits to Dong Mingzhu now, in the case of laying a good foundation, dong Mingzhu is also expected to gain more benefits from the vast new energy vehicle market after that, which also shows her strength to a certain extent.
You know in 2016, Dong Mingzhu was optimistic about the development prospects of the field, decided to invest in the acquisition of Yinlong, but was opposed by most of the shareholders, after which she had to take part of the equity of Yinlong out of her own pocket, and even in the process was deceived by Yinlong founder Wei Yincang, in short, on this road, Dong Mingzhu did not go smoothly.
Fortunately, today finally lived up to expectations, under her insistence, air conditioning and automobile business have achieved a great breakthrough, but it should be noted that Gree's current shortcomings are still very obvious.
We compare it with Midea, a big difference between the development of the two sides is in diversification, Midea's business includes refrigerators, washing machines, air conditioners and other aspects of home appliances, and more importantly, the development of each of its industries is more balanced, but also on the list.
You can check the development of Gree, although Dong Mingzhu has also been trying to develop new businesses in recent years, including mobile phones, chips, medical devices, etc., but these without exception have not made significant progress, especially in the mobile phone industry, its sales can even be described by the word dismal.
Therefore, at present, the air conditioning business still accounts for the majority of Gree, accounting for more than 70%, which also shows that Gree's ability to take risks in the future is still relatively weak, and now compared to the United States or a state of near victory, if you want to maintain a leading position in the future, you also need to be vigilant at all times.