It is not an increment nor a stock The air conditioning market has entered a stage of shrinkage

Mondo Finance Updated on 2024-01-30

An air-conditioning company that was put into production almost three years ago recently gave its employees a long vacation, and it will not start work before the year, and the company itself is in a state of reorganizationOf course, there are accidental factors that led to the company's original situation, but in essence, it is the poor management of the entity, from the original boom to today's situation, which is somewhat embarrassing. This reflects the harsh survival and development environment faced by the domestic air-conditioning market from one side.

In the past two months, the author visited a large number of small and medium-sized air conditioning manufacturing enterprises in China, there is not much positive and optimistic sentiment, negative, pessimistic future expectations are the mainstream mentality, after the cliff landslide that began in July this year, the domestic market in November did not change the fundamentals.

All the phenomena show that the domestic air conditioning market has entered an unprecedented shrinkage and reduction channel from the earlier incremental development cycle into the stock game stage. If it is a cycle problem, then each manufacturer can wait quietly, through hard work, consolidate the basic work of each aspect of research, production, supply and marketing, as long as it passes through the cycle, you can reap another wave of dividends.

But what we are facing now is not a cyclical issue, but a trend issue;Once a trend is formed, it is difficult to reverse it in the short term. The formation of the shrinkage trend will intensify the competition in the domestic air conditioning market and a new round of dynamic evolution.

First of all, the phenomenon of obtaining the support of merchants at extremely low prices is spreading, 2000 yuan below 2P cabinet machine and 900 yuan below 1P single cooler, not in the behavior of individual enterprises, which will pull down the average shipment of the industry**. Now, the biggest benefit of the air conditioning market may be the leading brands represented by Gree and Midea, which have not yet begun to pick up on a large scale and on a large scale.

Because of the continuous growth of the export market, there is enough space for leading enterprises to maintain total production and sales on a high platform. In fact, when the domestic market began to plummet in July, the overseas market began to gain momentum and grew at a high rate for months. Small and medium-sized enterprises are also expanding their export business, especially after the Canton Fair in the autumn of this year, the export market has also become an important means of output capacity of second- and third-tier brands.

Extremely low prices and re-expansion of exports are themselves indicative of the shrinking trend of the domestic market. The demand for air conditioning products is related to the high-end of the real estate market, and the situation of the latter does not need to be described too muchMoreover, the leading and mainstream enterprises have further expanded the market investment in multi-line and air duct machines this year, and the demand for household split machine products has also formed an obvious substitution effect, which has intensified the shrinkage trend of the domestic household air conditioning market.

Different from other household appliances, the air conditioning market is also affected by the weather, and one of the phased factors why the domestic market is very unsatisfactory this year is that there are no favorable climatic conditions in the main areas of East China, South China and Central China in summer. If the domestic market wants to have a small upsurge in the short term, it is only possible to expect the stimulation of high temperatures during the peak season.

The upgrading of the stock will indeed provide a steady stream of basic support for the entire industry, and there will be no significant decline in the short term, but it will not show a wide range of growth, but will continue to put pressure on the enterprise in a spiral downward trend.

There are many ways for air conditioning manufacturers to withstand this pressure, control stable cash flow, strengthen the expansion of marketing ends, and enhance product competitiveness, of course, including low prices for the market and demandAfter all, in the shrinkage stage, one more order for one company means that another company has one less customer or user. However, the first thing that air conditioning manufacturers need to adjust is their perception of the market, there is no market that only rises or falls, only enterprises and brands that go in and out.

This is the tragedy of market competition in the shrinkage stage, perhaps, the air conditioning market will reproduce a new wave of brand withdrawal, no matter how many brands exit is not surprising, when the market reshapes the ecology and new opportunities, the previously dormant brands and enterprises will once again enter the industry vision. (Vance).

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