Recently, Dong Mingzhu talked about the untrue statement of "air conditioning first" of Xiaomi air conditioner at the 2023 annual general meeting of shareholders of Gree Electric Appliances. This has sparked attention and discussion in the industry about the strength of the two brands.
As an important home appliance in summer, the competition between brands in the air conditioning industry is becoming more and more fierce. As the industry leader Gree Electric Appliances, in the face of the impact of the new brand Xiaomi, Dong Mingzhu chose to respond positively at the shareholders' meeting, which fully reflects his personality.
The brand strength of Gree Electric Appliances
As the leader of the air conditioning industry in mainland China, Gree Electric has a strong brand appeal and reputation. Over the years, Gree Electric has adhered to independent innovation, accumulated strong technical strength, and has many independent intellectual property rights.
Gree Electric has always paid attention to product quality, and has won the recognition of consumers to be a "century-old brand". This has accumulated a large number of loyal users for Gree Electric Appliances. According to statistics, Gree Electric Air Conditioner ranks first in China's market share.
The development of Xiaomi air conditioners
Compared with the old enterprise Gree Electric Appliances, Xiaomi Air Conditioner has not been in the air conditioning industry for a long time, but it has risen rapidly with Internet thinking and user reputation. Xiaomi Air Conditioner attaches great importance to the construction of online channels and adopts a direct-to-consumer sales model.
Xiaomi air conditioners also pay attention to the cost performance of products, which are popular with young users. However, due to the short entry time, there is still a certain gap between Xiaomi air conditioner and Gree Electric in terms of channel layout and brand influence.
Potential concerns about Gree Electric
Although Gree Electric still dominates the air conditioning industry at present, the rise of Xiaomi air conditioners has made it feel the pressure. This is mainly reflected in the following aspects:
In terms of channel construction, Xiaomi air conditioners are directly facing consumers and using online sales channels, which has an impact on traditional home appliance companies.
In terms of technological innovation, Xiaomi air conditioner has launched intelligent functions such as voice control, which are very popular among young people. Gree needs to be strengthened in this regard.
In terms of brand influence, Xiaomi has established a good brand image with Internet thinking. The brand of Gree Electric should continue to be recognized by young people. In terms of price strategy, Xiaomi's air conditioner pressure price strategy has affected the profit margin of Gree Electric.
Gree Electric's countermeasures
In the face of competition from Xiaomi air conditioners, Gree Electric is also actively responding, and the main strategies include: accelerating channel reform, strengthening the construction of online channels, and allowing offline stores to develop online. Intensify technological innovation and launch new products that are intelligent, energy-saving and environmentally friendly.
Continue to adhere to the quality policy, enhance the brand image, and win more consumer trust. We will continue to explore overseas markets and improve our international management capabilities. Focus on emerging businesses such as new energy, industrial manufacturing, etc., and look for new growth points.
epilogue
Dong Mingzhu's positive response to Xiaomi's statement that air conditioners are the first at the shareholders' meeting is out of consideration for maintaining the leading position of Gree Electric Appliances, and also reflects its concerns about the development of the industry.
However, Gree Electric has deep technical accumulation and strong brand strength, and is fully capable of dealing with the competition of new entrants. By accelerating strategic transformation and technological innovation, Gree Electric will continue to maintain its leading position in the air conditioning industry.
The emergence of Xiaomi air conditioners is also conducive to stimulating the vitality of enterprises in the industry, improving product quality, and ultimately allowing consumers to get better products and services.
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