Nowadays, everyone's living standards are constantly improving, and they have more and more money in their hands. Naturally, they also want to live a prosperous life. Various simple consumer goods can no longer satisfy everyone's appetite. Nowadays, people no longer just seek food and clothing, but hope that their living standards can be raised to a higher level. Therefore, high-quality products have become the goal that everyone is crazy about pursuing.
For example, various home appliances have slowly entered thousands of households, and the home appliance industry has also ushered in a period of rapid development. Nowadays, almost every household has home appliances such as refrigerators, televisions, washing machines, etc. In addition to these relatively basic home appliances, the demand for other electrical products is also continuing to increase.
Now that the hot summer has arrived, basically everyone has to live with air conditioners every day in order to survive. Air conditioning can make our lives more comfortable, and it is much easier to use than electric fans. Whether it is a business or a home, the demand for air conditioners is very strong.
Air conditioners have a huge market, and it is precisely because of this that more and more domestic air conditioner brands have emerged. After fierce competition, some brands stand out and stand firmly at the top of the industry.
For example, we are all very familiar with the domestic air-conditioning giant Gree . It has always been the number one in air-conditioning sales and has never been shaken in the past 24 years. But now, Gree's position as the boss has been officially replaced by other air conditioners. Now we are the largest air-conditioning group in China, with an average daily revenue of 700 million. Its strength is really amazing, and it has become the big brother of air-conditioning.
This air conditioning group is Midea. It has surpassed Gree with its outstanding strength and achieved the top position. In the past few years, Midea's sales performance has shown a clear upward trend. They regard Gree as an excellent competitor and their goal, and now they have finally achieved this goal.
When the world public health incident broke out two years ago, all walks of life were hit to varying degrees. This is especially true in the air-conditioning industry. Sales have stagnated, and where should all air-conditioning companies go? It has become a big problem.
When facing a sudden blow, among many domestic air-conditioning brands, Gree suffered the most serious losses. Because of the epidemic, many users are unable and unwilling to go out.
For their own safety, everyone chooses to buy goods online. This is definitely not so friendly to Gree air conditioner , because they have always used offline store sales.
The goods in Gree’s offline physical stores could not be sold, which caused a serious decline in their sales performance. In just half a year, their operating income fell by about 28%, while their competitor Midea's revenue fell by only about 9%. Haier was even more astonishing, with only a 4% decline. It is enough to see that among the three giants in the air-conditioning industry, Gree's development is the most unsatisfactory.
Under the huge impact, Gree, which had dominated the air-conditioning market for 24 consecutive years, was finally kicked off the throne. According to relevant data, in , Gree Air Conditioning's operating income was only about 41 billion in half a year.
Gree felt very troubled by such dismal results. It has been brilliant for too long. This kind of achievement has not been seen for a long time. Over there, competitor Midea's air conditioners are being sold in full swing, with revenue reaching 64 billion.
In the extraordinary year of 2020, the air conditioning market has experienced great fluctuations. Midea kicked Gree off the throne and firmly topped the list with a market share of 35%. Gree ranks second, with a market share of 31%. The third largest player is Haier, with a market share of 13%. These three companies, , have basically captured 80% of the domestic air-conditioning market share, forming a three-legged situation.
Many people are a little surprised by Midea's sudden rise. Judging from the sales market share of online air conditioners, the gap between Midea and Gree has widened. Midea captured 37% of the market share, while Gree only had 25%. Therefore, whether it is an online e-commerce platform or an offline physical store, Midea's results are better than those of Gree and Haier.
For Midea, 2020 was extremely extraordinary. This year they successfully achieved their rise. However, many people have only seen the brilliant achievements that Midea has achieved this year, but have ignored Midea's past. In fact, they have been quietly accumulating strength for many years.
Midea was born in 1968. It has gone through decades of ups and downs until now. Nowadays, Midea has a presence in various cities in China, with more than 200 subsidiaries.
Midea has developed for so many years. Not only has it achieved good results in the domestic market and won a huge market share, has also been actively developing its presence in foreign markets. Now Midea has more than 60 overseas markets.
In addition, Midea's main business is not only air conditioners, but also refrigerators, washing machines, etc., and they are involved in various large and small home appliances, and have achieved good results.
The air conditioners produced by Midea, whether they are ordinary hanging products, or central air conditioners, HVAC , air supply systems, etc., have gained a good reputation in domestic and overseas markets.
In 2013, Midea successfully completed its listing. Since this year, Midea's performance has become better and better year by year. In 2016, Midea had even entered the list of the world's top 500 companies. At this time, they were ranked 481st. It seemed that the result they achieved was still a little dangerous, but they soon proved with their strength that they could continue to climb up!
Midea has developed very rapidly in recent years. By 2020, they have ranked 307th among the world's top 500 companies.
An important reason why Midea can achieve its current glory is that they are constantly applying for patents. The number of patents they have applied for now has exceeded 100,000, which is a very scary number. As of November 2020, their stock prices have continued to soar, and their market value has reached 660 billion.
Compared with many other competitors, Midea invests much more in scientific research. Basically every year, they spend 1/4 of their income as R&D funding. It can be seen that they have put a lot of effort into innovation and research and development.
They understand very well that if they want to successfully stand out from the fierce competition, they must be willing to invest in research and development and innovate in technology, so that everyone can see their vitality and intentions. Only by constantly upgrading products and following the trend of the times can our products be introduced into more households.
Midea’s approach is very wise, because now for most consumers, everyone is very pursuing quality. Especially for some young people with relatively considerable incomes, when purchasing many items, the first thing they may look at is the quality of the product, rather than the cheap price.
Midea knows how to cater to the needs of society and everyone's tastes, so the products it produces are exactly what consumers need, which allows it to gain a firm foothold in the industry. Under this trend, Midea has worked hard to move closer to the high-end market and stabilized its market share in the mid-to-low-end market. Their two-step approach is actually very wise.
It is not enough for a company to have the correct planning direction. Over the years, Midea has also made many improvements in its internal operations. In the past, Midea also had shortcomings, that is, they had too many dealers, entrenched in the middle, causing a series of product problems and giving everyone a bad impression.
Fortunately, Midea quickly discovered its own problems and actively made rectifications internally. Later, the dealers directly corresponded to the sellers, skipping many unnecessary steps. It was Midea's move that caused a huge change in the product sales market.
Nowadays, Midea has become the largest air conditioning group in our country. In the first half of last year alone, ’s operating income reached 139 billion yuan, achieving a net profit of 10% of revenue. This also means that every day Midea Group earns 700 million.
Nowadays, Midea is firmly positioned as the leader in the domestic air-conditioning market. If they continue at their current pace, I believe that in the end, they will be able to usher in a more glorious period of development!
