A few days ago, an organizational structure and personnel adjustment of Gree Electric Appliances has attracted much attention.
On May 9, Gree Electric announced the establishment of a household appliances business department, merging the functions and personnel of the household air conditioning and small household appliances business department, ice washing and household appliances business department, and appointing Lu Luqun as the sales director, in charge of the household appliances business department.
According to relevant public information, Lu Luqun himself has a deep relationship with Gree Electric Appliances, and served as the general manager of the Jingpin Household Appliances Project Department of Jingdong Household Appliances Division, and in 2022, he served as the CEO of Zhuhai Huange Digital Technology Co., Ltd. (hereinafter referred to as Huange Digital), and Huange Digital Technology is an authorized distributor of Gree Electric Appliances in Hebei.
In the past two years, as the CEO of Huange Digital, Lu Luqun has stabilized the development of Gree in the Hebei market and attended Gree Hebei's dealer conferences many times. In May 2023, at an event held in Shijiazhuang, in addition to air conditioners, Lu Luqun pushed Gree's refrigerators, washing machines and other electrical products; In August last year, at the 2023 Gree Hebei Dealer Autumn Opening Summit, Lu Luqun continued to promote the retail terminal to expand Gree's product line, responding to Gree's transformation from air conditioners to whole-house appliances.
Promote the integration and development of other home appliances
In 2023, Gree Electric will achieve revenue of 203.9 billion yuan, a year-on-year increase of 7.93%; The net profit attributable to the parent company was 29.017 billion yuan, a year-on-year increase of 18.41%. Among them, the revenue of core categories of air conditioning was 151.2 billion yuan, a year-on-year increase of 12.12%, accounting for 74.13%; The income of household appliances, including refrigerators, washing machines, small household appliances, etc., was 4.002 billion yuan, a year-on-year decrease of 12.38%.
Therefore, this organizational structure adjustment and personnel appointment is considered to be Gree Electric's continued promotion of channel integration, and vigorously promote the sales of Gree Electric's refrigerators, washing machines, kitchen appliances and other household appliances, to make up for the shortcomings of other categories with a weak sense of presence and a low proportion, so as to achieve the coordinated development of household appliances in the whole house.
The competitiveness of other categories such as kitchen appliances is weak
As early as May 2022, Gree Electric Appliances held a new light kitchen strategy conference of "Simple Cooking, Healthy Eating", and launched 5 major products, including refrigerators, smoke stoves, steaming and baking dual-energy machines, water purifiers and dishwashers, and at the same time, for the installation, use, and maintenance stages of the products after purchase, they put forward targeted simplification plans to create a relaxed and convenient kitchen experience, so as to achieve the goal of "simple cooking, healthy eating".
At the AWE2024 held in March this year, Gree Electric not only exhibited household air conditioners, but also focused on refrigerators, washing machines and new light kitchen appliances.
It is not difficult to find that although Gree Electric has been promoting the development of other categories such as household appliances and kitchen appliances, in terms of the proportion of business composition, Gree is still a professional air conditioning manufacturer.
Especially compared with the other two home appliance giants Haier and Midea, Gree has a small marketing scale and a weak sense of presence in other categories such as household appliances and kitchen appliances, and it is difficult to form competitiveness in the short term. In 2023, Haier's kitchen appliance business will achieve global revenue of 41.654 billion yuan, an increase of 6.9% over the same period; Midea's revenue from consumer electrical products, including refrigerators, washing machines, kitchen appliances and other small household appliances, was 134.692 billion yuan, a year-on-year increase of 7.51%.
Write at the end
In the first quarter of this year, Gree Electric achieved revenue of 36.364 billion yuan, a year-on-year increase of 2.56%; The net profit attributable to the parent company was 4.675 billion yuan, a year-on-year increase of 13.77%. In the context of the rapid growth of the domestic household air conditioning market in 2023, the domestic household air conditioning market will face certain growth pressure this year.
Recently, according to the announcement of national intellectual property rights, Gree Electric has successively obtained a number of patents, including air conditioners, range hoods, dishwashers, etc., which is enough to prove that Gree Electric Appliances is not completely "biased", and has always been around the "better life Gree Made" in the all-round research and development and layout.
As an enterprise with strong brand, R&D and financial power, we also look forward to Gree achieving greater breakthroughs in other home appliance categories.