OFweek smart home network news domestic air-conditioning manufacturers staged another show this year. First, the United States and Gree slammed the patent issue. Then Gree's founders Zhu Jianghong and Dong Mingzhu sang another Taiwanese opera. Now, Lei Jun has come to join in the fun! Recently, a product named "Mijia Full Inverter Air Conditioner" appeared in the national 3C quality certification list. Two years later, Xiaomi handed Changhong and once again entered the air-conditioning market.
Xiaomi first tried to enter the air-conditioning market two years ago, when he and the United States launched the "i youth smart air-conditioning", but the market responded flatly. Two years later, Lei Jun battled the air-conditioning market again to stir up troubles in the industry. Or use air conditioning as a pawn, the next bigger game? To understand this issue, we need to look at a few reasons for Xiaomi’s entry into the air-conditioning market to reveal its ultimate purpose:
One reason: air-conditioning market is still profitable
Businesses are always profitable, and Xiaomi insists on entering the air-conditioning market, first because of the huge potential of the air-conditioning market. Looking at air-conditioner sales data since 2010, apart from seasonal fluctuations, sales of air conditioners have steadily increased. In 2016, sales reached a maximum of 159.9 million units, and it is expected that sales in 2017 will reach 162.3 million units. Although the growth rate of sales of air conditioners showed signs of narrowing, overall sales still maintained growth, and market demand remained strong.
Figure: Domestic air-conditioning sales in 2010-2016
And since 2010, the cumulative value of air-conditioning production and sales ratio has remained at a high level above 90% for a long period of time, and in some cases it has even exceeded 100%. The market expects to reach 101.48 in 2018. Continuing to maintain a high rate of production and sales indicates that the demand for the air-conditioning market is relatively high. The air-conditioners produced by companies are basically in circulation, and the tight supply side leaves room for the entry of millet.
Chart: Domestic air-conditioning sales ratio for 2010-2016
Reason two: Continue to lay the ecological chain of millet
Continue to expand the intelligent hardware and improve the ecological chain of millet is another reason why Lei Jun persists in entering the air-conditioning market. At the beginning of the birth of Xiaomi, Lei Jun’s ambition was not only in smart phones, but he hoped to explore a set of models to complete the hardware ecological chain construction. To achieve this goal, as of the end of 2016, Xiaomi invested a total of 77 smart hardware companies.
With the in vitro incubation mode, Xiaomi’s smart hardware has successfully covered wearable devices, mobile phone accessories, VR, and automotive hardware. In the area of ​​home appliances, Xiaomi has launched smart TVs, routers, and purifiers.
As for entering the air-conditioning market, it is an important step for Xiaomi’s ecological chain to “white electricityâ€. Like many other in-vitro-incubated products, Xiaomi’s biggest short board is still the technical and after-sales service channel from the cross-border operation of the smart phone ecosystem chain, which is why it has sought cooperation with veteran home appliance companies twice.
This time, it chose to cooperate with Changhong. It was precisely the aftermarket system of the veteran home appliance manufacturer and the powerful technology R&D team and patented technology formed after the acquisition of Meiling. This is exactly what Xiaomi lacks. Therefore, cooperation with Changhong will be an important strategy for Xiaomi to enter the air-conditioning market and improve the hardware ecosystem.
The ultimate goal: speed up the construction of smart home
Xiaomi's hardware ecological chain continues to expand, the number of products has increased every year, and the plates have been spread widely. However, many products of the Xiaomi ecological chain are basically “respective of each other†and product integration is imminent. In order to complete the integration of products and realize the upgrading of Xiaomi's ecological chain, Xiaomi took aim at a new field early: smart home.
In the past few years, Xiaomi has not stopped the layout of smart homes, the author sorted out the millet's operation in the smart home field.
Source: Organized from public data
Since 2014, Xiaomi has invested in smart home companies in Shenzhen, Beijing and Shanghai to lay the foundation for building a smart home platform. During this period, Xiaomi also invested in smart hardware such as smart mattresses, smart projectors and smart routers. For the first time, Xiaomi's cooperation with Midea was trying to enter the air-conditioning field. It was during the deployment of smart homes in the north and south of Guangzhou. That is to say, Xiaomi insisted on entering the air-conditioning market and intended to pave the way for smart homes.
As we all know, smart home appliances play an important role in the construction of smart homes. At the time of the cooperation between Xiaomi and Midea, Midea Group has successfully covered many fields such as air conditioners, washing machines, refrigerators, kitchen appliances, and small household appliances, and this can be a glimpse of Xiaomi’s ambitions. This time, Xiaomi and Changhong entered the air-conditioning market again, which is a reappearance of history. If Lei Jun sells air-conditioning to lay out smart homes, it is expected that after Xiaomi enters the air-conditioning market, Xiaomi won't be fooled by Gree and other industries, and will seize the market share of traditional air conditioners, and will choose a more subdivided smart air-conditioning market. If it succeeds, then It will become a model for further expansion in the field of smart home appliances.
2011-2020 is the period of integration of smart homes. In the near future, protocols and technical standards in the smart home sector will begin to actively communicate and integrate. Xiaomi insists on entering the field of air-conditioning, it is hoped to use its ecological chain, eliminating the barriers between the smart home hardware, in this golden period to seize the smart home opportunities.
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