Xiao Mila Changhong made air conditioning, can Gree's life?

OFweek smart home network news Recently, a product called "Mi Jia full-frequency air conditioner" appeared in the national 3C quality certification list, commissioned by the manufacturer is Changhong Electric.

This is not the first time that Xiaomi has tried air conditioning. In 2015, Xiaomi cooperated with Midea to develop an air-conditioner, but in the end it ended disastrously. It was also mocked by Dong Mingzhu, chairman of Gree Electric, as "the two liars together."

I do not know if this decision will in turn arouse the desire of Dong Mingzhu.

"Old love" beautiful

When Xiaomi founder Lei Jun and Dong Mingzhu were at a tit for tat, each played a name in the other's field and saved a lot of publicity fees. At that time, the outside world believed that millet had the best opportunity to enter the air-conditioning industry.

In 2015, Xiaomi and Gree's old rivals in the United States hand in hand, jointly launched a "i youth smart air-conditioning", claiming to be "the first air-conditioning of young people", want to rely on its cool appearance and intelligent operation to attract young user. Millet also had 1.66 billion yuan in high profile shares in the United States, showing its firm determination. However, this product is ultimately reflected in the market because consumers reflect the concepts and gimmicks are too exaggerated, poor practicality and low power and other reasons in the market response.

Take the millet 1.5P model, its cooling power is 1060W, the price is 3099 yuan, while the same price of other brands, the power is between 2200-2800W.

Users Tucao: "The power is so low, it is no wonder that the remote smart home before you go home." "The so-called smart features and can not attract me to spend 600 more."

Today, Xiaomi has never disclosed the sales of this air-conditioner. Dong Mingzhu, who was playing a “patent war” with the United States at that time, also remembered: Tumi and Midea’s two swindlers were the “thief group”. !

In the past three years since the strategic cooperation between Xiaomi and the United States, there has not been much synergy in real business, and it seems that the air-conditioning products that the two have jointly created have not caused much wavering. With Xiao Mi’s introduction of a series of smart new products such as air purifiers, rice cookers, laser projection TVs, balance cars, and electric toothbrushes, this move has also directly touched on the benefits of long-established beauty in the smart home market.

Insiders pointed out that the above-mentioned conflicts of interest have made Xiaomi’s parting with the United States a necessity.

"New Love" Changhong

The failure of the first test failed to stop Jimmy from making air conditioning. After a long journey with the United States, Xiaomi turned his attention to Changhong, which is accelerating its expansion in smart homes and artificial intelligence. He tried to use Changhong's technical experience to ensure the quality of Xiaomi's air-conditioning products.

It is reported that after the acquisition of Meiling, Changhong, relying on more than 2,000 people's technical R & D team, also has a number of leading patented technology, abruptly squeezed into the leading position in the field of white goods, these may be able to help Xiaomi do less detours. For Changhong, the cooperation with Xiaomi also seems to be another test for smart technology.

“Changhong has been exploring the artificial intelligence field for a long time,” Changhong General Manager Li Jin said at the Changhong Artificial Intelligence Television Conference last year. Some industry observers have speculated that as Changhong’s technological reserves in the field of artificial intelligence begin to materialize, it will not rule out the release of artificial intelligence refrigerators, artificial intelligence air conditioners and other products in the future.

At the beginning of this year, Changhong and Jingdong jointly released an "artificial intelligence voice" air conditioner, which also conveyed a clear signal to the outside world: "Intelligent" has become the main direction of the future development of Changhong air conditioning.

For Xiaomi, which is light asset and intelligent, it is Changhong’s strong strength in air-conditioning technology and manufacturing, and Changhong’s pursuit of intelligence.

The two hit it off, and the “Mi-House Full Inverter Air Conditioner” was born.

Why give birth?

For Xiaomi's move, some netizens ridicule: Xiaomi enters the air-conditioning market just as Gree enters the mobile phone market. There is no threat and no waves can be lifted.

Is that really the case?

According to the statistics of the Consumer Research Center, Gree ranked first in the Chinese market for air-conditioner share with 44%, followed by Midea and Haier. In terms of sales, the retail sales volume of China's air conditioner market decreased by 4.8% in 2015 compared with the same period of last year. It recovered in 2016, but overall the growth rate is almost stagnant, and it is difficult to have a higher breakthrough space.

Gree and Midea occupy more than 60% of market share

Some analysts pointed out that millet's failure to enter the air-conditioning market is far more likely than the possibility of success. Because air conditioners emphasize core technology more, their core components are air-conditioning compressors. Gree and Midea, currently the top two domestic air conditioners, have their own air-conditioning compressors; even if millet and Changhong cooperate, but millet and patents and technology can play a role in this regard. The space is very small, plus the air-conditioning industry needs a huge manpower and material costs, compared to Gree air-conditioner with the slogan of “6 years of warranty for the whole machine”, the challenge faced by Xiaomi, which plays a key role in light asset management, is self-evident.

But from another point of view, Xiaomi may also be the "catfish" that stirs the air-conditioning market.

Insiders pointed out that millet's upcoming air-conditioner price is likely to be at least 500 yuan cheaper than similar products, in order to stimulate the user's desire to buy. This is also consistent with Xiaomi's consistent style of play. Although there is no air-conditioning factory and after-sales service system for the time being, at least it is possible to set off a price war in the market to get more users.

“The appearance and function of Xiaomi’s products are all exquisite and the price is very affordable. Together with the brand marketing capability that has always been eye-catching, there is a group of loyal 'rice rice'. From these several factors, it is possible to realize air conditioning in millet. "The Deputy Secretary-General of the China Electronic Chamber of Commerce, Mr. Lu Renbo, expressed his appreciation for the China-Singapore Jingwei. He believes that Changhong's manufacturing capabilities and product quality are unquestionable. With the gradual development of Changhong, Xiaomi's brand, Changhong, will be a complementary concept.

For millet's entry into the air-conditioning industry, Gree’s insiders said that “welcome competition, but it’s not easy to give birth.”

Lu Zhibo believes that Xiaomi is doing air-conditioning and opening the market during the initial stage is achievable, but competition with Gree and the United States is "not necessary at all." “No matter whether it is the scale of the company or the current sales of air conditioners, Xiaomi has no way to compare it with Gree and Midea. It is just like Gree's mobile phones can not be compared with Xiaomi mobile phones.”

For the cross-border behavior of Xiaomi and Gree, Lu Renbo believes that Xiaomi’s air-conditioning is bigger than that of Gree’s mobile phone. "Gree is basically impossible to do mobile phones, but Xiaomi is still possible to do air conditioning."

It seems that Xiaomi Changhong air conditioners in hand, so that the market becomes difficult, it is still possible.

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