Air conditioning frequency conversion presents a "blue ocean" situation
Enterprises should not miss the opportunity for development
At present, from the perspective of the market development space for frequency conversion air conditioners in China, it is very broad. Unlike the "red sea battle" of fixed-speed air conditioners, the future of frequency conversion air conditioners still remains an alluring "blue ocean". China's air conditioning enterprises should seize the good opportunity for the development of the air conditioning market and occupy the future market space of frequency conversion air conditioners. Nowadays, except for a few enterprises such as Galanz which continue to be committed to fixed-frequency air conditioners, domestic home appliance giants like Hisense, Midea, Gree and others have all targeted the frequency conversion market and started to make efforts. In addition, Japanese brands such as Panasonic, Daikin, Mitsubishi Electric and others have also rushed to capture the Chinese frequency conversion air conditioning market.
Frequency conversion air conditioners enter the acceleration period, the outline of the "blue ocean" situation is clear
China's first frequency conversion air conditioner was introduced 12 years ago, but due to various reasons, especially price and technical factors, its advantages were not recognized by consumers in the early stages, and its development speed was slightly slow. However, with the continuous maturity of frequency conversion technology and consumer recognition of its energy-saving, comfortable, and environmental-friendly advantages, frequency conversion air conditioners have developed rapidly in recent years, especially this year, where the acceleration momentum is particularly obvious.
According to data from Zhongtiankang: the cumulative retail sales of frequency conversion air conditioners in the first two months of 2009 reached 500 million yuan, with the retail sales share increasing by 6.5% year-on-year, reaching 14.5%; the cumulative retail volume was 107,000 units, with the retail volume share increasing by 7.9% year-on-year, reaching 19.2%; among the top 12 best-selling models in the air conditioning market sales statistics, frequency conversion air conditioners accounted for five models. This year during the "May Day" holiday, in Suning's inventory preparation for the Shanghai area, the overall inventory structure of frequency conversion air conditioners exceeded 30% for the first time, which was the highest ever. The sales data of various air conditioning manufacturers during this year's "May Day" also showed that the proportion of frequency conversion air conditioners averaged between 15%~30%, far exceeding last year's 5%~10%.
Although China's frequency conversion air conditioners have developed rapidly, their market share and popularization level are still far behind some developed countries like Japan and Europe and America. It is understood that the popularization rate of frequency conversion air conditioners in Japan has approached 100%, in France it is as high as 90%, and in countries like Spain and Italy, it exceeds 40%, while in China it is only about 10%. China's overall demand for the air conditioning market is huge, with annual demand reaching 30 million units, while the sales volume of frequency conversion air conditioners is only around 200,000~300,000 units. Clearly, the market space for China's frequency conversion air conditioners is enormous, making it a tempting blue ocean for air conditioning enterprises.
An inevitable trend, frequency conversion air conditioners become mainstream
Currently, although there are a few air conditioning manufacturers like Galanz who criticize frequency conversion air conditioners, especially using the fact that the country's recent energy-saving subsidies did not include frequency conversion air conditioners, thus considering fixed-frequency as the future direction, a comprehensive look at the consumption environment, macro industrial environment, and enterprise development environment shows that the popularization trend of frequency conversion air conditioners cannot be stopped, and in the future, frequency conversion air conditioners will inevitably occupy a dominant position in the Chinese market.
From the perspective of consumer demand, as frequency conversion air conditioners have unique energy-saving technological advantages, their low-frequency operation stability is stronger, temperature control is more precise, and energy-saving effects are better, meeting people's demand for improved air conditioning functions due to rising living standards.
From the macro-environmental angle, in recent years, the state's requirements for energy-saving products have continuously increased, creating a macro-environment for the development of frequency conversion air conditioners, forming an external driving force for the development of frequency conversion air conditioners. With the continuous increase in the energy efficiency requirements for fixed-speed air conditioners by the state, their manufacturing costs gradually increase, and the price difference between fixed-speed air conditioners and frequency conversion air conditioners becomes smaller and smaller, thereby bringing market space for the development of frequency conversion air conditioners.
From the perspective of the enterprise itself, when energy efficiency reaches a certain level, the technical difficulty of improving the energy efficiency of fixed-speed air conditioners becomes increasingly large, while in reality, frequency conversion air conditioners are easier to achieve higher energy efficiency levels. Enterprises' pursuit of producing higher energy-efficient air conditioners also forms an industry atmosphere for the development of frequency conversion air conditioners.
I believe that the transition of the air conditioning industry from the fixed-frequency era to the frequency conversion era is an opportunity for everyone, and whoever can seize this opportunity will win the future of the air conditioning market.
Enterprises going against the trend need to take a long-term view and not miss the opportunity for development
Despite the general optimism in the industry regarding frequency conversion air conditioners, and the excellent performance of the frequency conversion air conditioner market this year proving its enormous potential, there are still two camps domestically among air conditioning enterprises regarding whether the specific direction for efficient, energy-saving air conditioners should be "frequency conversion" or "fixed-frequency high efficiency."
Manufacturers represented by Hisense and Midea focus on the research and development of leading-edge technologies and products for frequency conversion air conditioners. For example, Hisense, which carries the "frequency conversion banner," has been professionally doing frequency conversion for 12 years and possesses strong core technology and production capabilities. Midea announced as early as September 2008 that it would aggressively pursue frequency conversion and aimed to dominate the frequency conversion air conditioner market. Since the beginning of this year, Midea's frequency conversion air conditioners have reaped abundant rewards, showing a strong upward trend.
Manufacturers represented by Galanz, despite launching their own frequency conversion products, remain pessimistic about the future prospects of frequency conversion air conditioners and continue to focus their main efforts on fixed-frequency air conditioners.
I believe that China's air conditioning enterprises must correctly identify the future market development direction in order to occupy a favorable position in future market competition. While enterprises like Galanz continue to favor fixed-frequency air conditioners, Midea has already gained the upper hand in the frequency conversion air conditioner field. Data detection from Zhongtiankang in the first two months of 2009 showed that Midea swept the top three best-selling models in the frequency conversion air conditioner market; its retail volume share of frequency conversion air conditioners quickly increased from 4.1% in 2008 to 23.5%, closely approaching Hisense's 25.4%. Now, Galanz's going against the trend, being pessimistic about the prospects of frequency conversion air conditioners, and ignoring the R&D of frequency conversion air conditioner technology may have already laid the groundwork for losing its voice in the future frequency conversion air conditioner field.
Galanz entered the air conditioning field in 2001, then vowing to secure another "world champion" after microwaves. But things didn't go as planned, and to date, Galanz air conditioners are merely considered a second or third-tier brand, far from their grand ambitions. Industry observers pointed out that although Galanz's difficulties in breaking through in the air conditioning business stem from multiple reasons, the main cause lies in Galanz neglecting R&D in air conditioning technology and blindly replicating the price destruction model from the microwave oven sector. As we all know, Galanz's rise is based on success in the microwave oven sector. In the microwave oven sector, Galanz's scaled-up production capacity caused the price of microwave ovens to drop again and again, thereby repelling many competitors. However, air conditioners differ from microwave ovens. Before establishing a price advantage through scaled-up production capacity in the air conditioning sector, Galanz blindly replicated the price destruction theory from the microwave oven sector to the air conditioning industry, which clearly wasn't appropriate.
Compared to the bleakness of the air conditioning market in 2008, the booming frequency conversion air conditioning market this year has injected a fresh vitality into China's air conditioning market. The industry has also realized that the future frequency conversion air conditioner market is a "blue ocean", with insiders even proposing the saying "those who master frequency conversion rule the world." Enterprises like Galanz, which are going against the trend, should take a long-term view and prepare for "changing course," otherwise they may likely lose the future of the air conditioning industry.