Guide
It involves the key core technology in the air conditioning industry - compressors, as well as the differences between major brands in product line strategies and profit margins. It mentions emerging brands such as Xiaomi's challenge to traditional brands, as well as the impact of compressors on air conditioning performance and durability. I want to know why the mid-to-high-end products of Gree and Midea have good durability, and the mid-range products of Xiaomi and Haier are cheaper? Read on!
Gree air conditioner product line strategy
Gree air conditioner has always been the mid-end mainstream market in the product line strategy, using self-produced compressors, and Gree's own compressors are used for low-end products, which ensures the cooling and heating effect of air conditioners while controlling costs, and the market competitiveness is also very strong. Gree has also made a lot of efforts in high-end products, such as using foreign compressors on the basis of foreign advanced technology to ensure the performance and durability of high-end products.
Emerging brands like Xiaomi may not have the pressure of traditional air conditioning brands, but may form a strong challenge to traditional air conditioning giants with excellent product design and user experience, coupled with the price advantage of Internet brands, so as to promote healthy competition and innovation in the entire air conditioning industry.
In fact, it is not difficult to find that although the products of various air conditioning brands are different in appearance and actual use, the basic working principle and structure of its core component, the compressor, are almost the same, and there has been no essential change.
But why are the mid-to-high-end products of Gree and Midea so durable, and the prices of Xiaomi and Haier's mid-range products so cheap, there must be many unknown details.
In fact, you can simply imagine that a popular air conditioning brand, if you want to enter a new sales window, the simplest and rude way is to lower the price, but these products with sinking prices will soon be eliminated by the market if there is no profit guarantee.
Of course, for those emerging brands, there is no such burden, they only need to ensure that the product itself is cost-effective, and can even rely on the innate advantages of Internet brands to occupy the market at a lower price.
Although the competition between various brands is very fierce, what we see from the user's perspective is not a price war, but a constantly upgraded new product, and it is precisely because of this fierce competition that wave after wave of black technology suitable for users' daily life has been born.
The core technology of the air conditioning industry
From the perspective of the entire air-conditioning industry, whether it is central air conditioning or household air conditioning, whether it is split or cabinet, whether it is frequency conversion or fixed frequency, its core component is the compressor, which is indisputable.
The role of the compressor in the air conditioner is like the role of the heart in the human body, it absorbs the low-temperature and low-pressure refrigerant through continuous cycle work, compresses and heats, releases the high-temperature and high-pressure refrigerant, and then dissipates and cools the refrigerant through the radiator, and then the compressor absorbs it again, and so on.
It can be said that the entire process of air conditioning refrigeration and heating is completed under the drive of the compressor, so how important it is can be imagined.
But does this thing strike you as amazing? Obviously, all major air conditioning brands use one or several fixed types of compressors, but the performance of air conditioners produced by different brands has vastly different performance in the use process.
Some can be used boldly for ten or eight years as soon as they are bought, and there is almost no need for maintenance, but some have all kinds of problems not long after they are bought, and even have to replace the compressor.
Even if it is the same brand and the same series of products, there are great differences in the service life of products at different price points. What's going on here?
For ordinary users, the cooling effect and durability of air conditioners are the two most concerned aspects, and these two aspects are closely related to compressors.
There are many studies and improvements on compressors at home and abroad, such as intelligent inverter technology is one of them, but its essence is to upgrade and optimize the original inverter compressor on the basis of the corresponding upgrades and optimizations.
From a technical point of view, the compressor itself, the core component of the air conditioning industry, has not undergone essential changes, and its basic structure is still composed of pistons, crankshafts, connecting rods, cylinder barrels and other components.
However, through continuous improvement and optimization, different manufacturers have formed a variety of high-performance compressor products, which play a vital role in promoting the improvement of air conditioning performance and energy efficiency.
Profit margins in the air conditioning industry
So since it is so important, what is the specific significance of starting from the compressor for the air conditioning industry?
We need to understand that although the major air conditioning brands are engaged in scientific research and innovation in external publicity, the product improvements and upgrades they really make are still limited.
As we have just said, in the entire air conditioning industry, whether it is a household air conditioner or a commercial air conditioner, whether it is frequency conversion technology or fixed frequency technology, whether it is split or cabinet, the core is the compressor.
Therefore, major manufacturers either independently develop new compressors, or purchase more advanced compressors from the outside that are more suitable for their own products. Obviously, the former has an advantage in cost, but the latter is more guaranteed in terms of product performance.
However, from another point of view, even if the same type of compressor is used, major brands will not use it directly, and they will make further improvements and optimizations on this basis.
In this way, the air conditioning products produced will be more in line with the positioning of their own brands and user needs. If we look closely, we will find that in the brochures of various air conditioning products, "the new and upgraded XX compressor" is almost the standard phrase.
Since the core technology is so important and occupies such an important position in the manufacturing process of the entire air conditioning product, the compressor will bring such a large economic loss to the user when it needs to be replaced for various reasons, so why can the profits of major air conditioning products be so high?
Maybe there are a lot of factors that you and I can't even think of. For example, the brand premium mentioned above, in the minds of users, old manufacturers such as Gree, Midea, and Haier are like Apple and Samsung, and they are given extremely high product expectations without any rational conjecture.
Of course, for emerging brands, there is no such historical accumulation and word-of-mouth foundation, and they can only use lower prices to induce users to try to buy.
In addition, production costs may be the cause of this profit margin gap. Although major brands will advertise their own localized production in mid-to-high-end products, in fact, foreign imported components still account for a large proportion.
Even in developed countries such as Japan, the United States, and Germany, there is no difference in quality between parts produced in their own countries and parts produced in large eastern countries.
But these foreign accessories alone can bring a high premium to the product. In addition to this, another factor that can affect profit margins is market monopoly.
Although there are a variety of air conditioning products on the market now, there are only a few brands that can really influence users' purchase decisions.
Users are most afraid of trouble when choosing products, and they prefer to choose those old brands that are familiar if they don't know enough about the performance of an emerging brand's products.
epilogue
The air conditioning industry is highly competitive, and the difference in profit margin and product performance between brands is inseparable from the core technology of compressor. Every brand is trying to attract consumers through technological innovation and product strategy to form its own competitive advantage in the market. Will you choose an established brand you can trust, or will you be willing to try an emerging brand? Leave a message to share your choice!