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Both central air conditioning systems claim to have the highest market share among domestic brands. This incident happened between Midea and Gree, leaders in the air conditioning industry.
Perhaps, compared to the fierce competition in household air conditioners, there is still significant growth potential in the central air conditioning market, making it another arena that air conditioning giants do not want to miss. Behind conflicting data lies increasingly fierce overt and covert struggles between air conditioning leaders in the central air conditioning market.
Conflicting Data
According to statistics from Aiken Refrigeration Network, Midea Central Air Conditioning has maintained the highest market share in the domestic central air conditioning market for three consecutive years since 2008. Midea Central Air Conditioning often uses this data in its external promotions. In 2010, based on the aforementioned source, Midea Central Air Conditioning had a market share of 11.5%, firmly holding the top spot among domestic brands.
However, as another dominant force in the air conditioning industry, Gree cited the "2010 Central Air Conditioning Market Research Report" from HVAC&R Info, stating that "in 2010, Gree Central Air Conditioning became the first domestic central air conditioning brand with a market share of 9.6%."
"This is caused by different statistical criteria," a Midea insider privately told me.
So, whose statistical data is more accurate? Hong Shibin, Deputy Chairman of the Marketing Committee of the China Home Appliance Business Association, believes it is hard to evaluate because different standards lead to different results. "It's still up to the consumers." However, he also mentioned that compared to HVAC&R Info, Aiken has been doing this for a longer time.
Lu Renbo, Deputy Secretary-General of the China Electronics Chamber of Commerce, also stated that different statistical criteria led to different results. "In terms of technology, brand, and market, the gap between these two companies is not significant."
Intensified Competition
In Lu Renbo's view, behind both companies claiming to be "the first", lies the increasingly fierce competition in the central air conditioning market. "Previously, central air conditioning was mainly for commercial use, but now many families are starting to adopt it."
Due to the relatively short entry time into the central air conditioning field for domestic brands, they lack core technological advantages, and for a long time, the market share has been dominated by foreign brands. However, after domestic brands gradually pushed foreign brands out of the household air conditioner market, central air conditioning has become another target they vie for.
Recently, the highest-level event in China's HVAC industry - the opening ceremony of the 9th MDV Central Air Conditioning Design Application Competition was held at Midea's headquarters in Shunde, Foshan. On that day, Midea invited many industry experts to attend the opening ceremony. For Midea, apart from supporting the development of the central air conditioning industry, this event undoubtedly helps consolidate its position in the central air conditioning sector. Tian Mingli, President of Midea's Central Air Conditioning Division, explicitly stated that they aim to surpass Daikin and become the domestic central air conditioning brand with the highest market share.
To continue consolidating their advantage, in May last year, Midea Central Air Conditioning expanded its Chongqing production base, and in September, invested 2 billion yuan to build a Hefei production base, with an expected annual sales revenue reaching 8 billion yuan.
Gree hasn't been idle either. As early as 2009, Gree Chairman Zhu Jianghong expressed his intention to reclaim the central air conditioning market from foreign hands. Almost simultaneously with Midea, Gree also invested 1.7 billion yuan in Hefei for the construction of a central air conditioning project, expecting to achieve an annual output value of 7.7 billion yuan. In the central air conditioning bidding field, Gree has frequently made efforts, successively winning bids for multiple projects including the main stadium and several supporting projects of the 2010 South Africa "World Cup", and 14 competition venues of the 2010 Guangzhou Asian Games. Recently, Gree also won a bid for the super-large central air conditioning project of Guangzhou International Commodity Exhibition Trade City, securing a hundred-million-yuan order.
As for whether domestic central air conditioning can seize more market share from foreign brands, Lu Renbo believes that the key lies in whether they can provide satisfactory products and services to consumers.
> Related Reports: The 9th MDV Central Air Conditioning Design Application Competition opens. Haier is one of the first companies in Beijing to obtain central air conditioning cleaning qualifications. Gree Electric's central air conditioning wins a hundred-million-yuan bid.