Gree finally achieved nearly 200 billion in revenue, and successfully achieved nearly 200 billion revenues, reached the oath of its chairman Dong Mingzhu, and also won with Lei Jun The gambling, and all this is inseparable from its deep-rooted three-four-five-line market.
At the end of 2013, Dong Mingzhu and Xiaomi’s founder and chairman Lei Jun won the annual economic figures. The jokes on both sides eventually turned into a 1 billion gambling game, and the war of words between the two sides continued to this day, which gave Gree a high exposure, but it also caused it to distract.
After the 1 billion gambling game with Lei Jun, Gree opened up diversification, trying to achieve rapid growth in revenue through diversified development, and entered the mobile phone and small household appliances. , refrigerators, smart manufacturing and other industries, but from the performance in 2017, life appliances and smart equipment accounted for only 1.55% and 1.43% of the total revenue, the success of mobile phones is only Dong Mingzhu claimed that the market is fresh See the trace of Gree mobile phone.
When the diversification was started, its main business, the air-conditioning business, suffered setbacks. In 2014, its revenue reached the peak of 140 billion yuan. Subsequent revenues in 2015 and 2016 were only 97.7 billion and 110 billion respectively, mainly due to fierce competition in the air-conditioning business.
During that period, the domestic online air-conditioning market entered a period of rapid growth, and the growth rate of online air-conditioning shipments was much higher than that of the offline market.The king of the online market is undoubtedly Oaks, Oaks' share of the overall air-conditioning market is far behind Gree and the United States, only a fraction of them. Oaks has seized the opportunity of the large-scale development of the online air-conditioning market. The online air-conditioner market once won the first place. Even if Gree and Midea started to exert their online market, the shares of the three companies in the online market will not be far apart, forming a tripod. The pattern has led to a setback in Gree's steady growth over the years. Since 2015, Gree's market share has begun to decline.
China's air-conditioning market is welcoming in 2017 Due to the rare hot weather in the world, air-conditioner sales increased by 31% year-on-year. Gree is one of the best. Its announced results show that revenue increased by 36.92% year-on-year to 148.286 billion yuan, breaking the record set in 2014. The net profit increased by 45.27% year-on-year. Gree's performance can achieve such excellent results, still relying on air-conditioning business,The air-conditioning business contributed more than 80% of its overall revenue.
Compared with its achievements in the air-conditioning industry, other businesses such as small appliances, refrigerators, and mobile phones are still hard to see, which seems to make it reconsider. In order to achieve rapid growth in performance, it is necessary to return to the dominant air-conditioning industry. Only the air-conditioning industry continues to achieve excellent results to support the development of other businesses.
But perhaps it takes into account that online market and Oaks have not been able to take advantage of the online market for many years, this year it is once again in the air-conditioning market At the time, I chose the advantage of the offline channel that it relied on for success.
Unlike other air-conditioning companies, Gree can achieve great success in the air-conditioning market and it can not be separated from its air-conditioning retail channels. Gree's second The large-capital Tokyo Sea guarantee was formed by the channel merchants, and the two sides formed an interest alliance, which also has a strong retail channel that other air-conditioning companies do not have.With its strong channel advantage, it even dared to challenge the country's largest home appliance retail chain, Gome, and there was no cooperation between the two parties for nearly ten years.
This year we saw Gree start to cooperate with channel partners to penetrate the market of the 3, 4 and 5 lines, relying on the competitive advantage of its products and the service advantages of its channels. Small and medium air-conditioning companies in these markets. Gree's first three quarters of results showed that revenue increased by 34.11% year-on-year to 148.899 billion yuan, net profit increased by 36.59% year-on-year to 21.118 billion yuan, while the domestic air-conditioning market reappeared 40 million sets of inventory in the same period, thus further demonstrating Gree's performance. excellent.
While achieving outstanding performance in the air-conditioning market, Gree’s style has also begun to change. Dong Mingzhu has repeatedly stressed the need to develop independently, but in October this year it With the acquisition of Jinghong Refrigerator, which has inextricably linked with it, Jinghong Refrigerator has reached a million annual shipments, which has become a major player in the domestic refrigerator industry. Dong Mingzhu has shouted that by 2023 Gree will realize 600 billion yuan in revenue.Perhaps it will carry out more mergers and acquisitions in the future, and its main competitor, Midea, is rapidly achieving revenues of 200 billion through continuous mergers and acquisitions.
Reviewing 2018, Bai Ying Technology believes that Gree’s performance is still very good, but in its mouth of the chairman Dong Mingzhu and Xiaomi Chairman Lei Jun In the process, it seems that it is also changing its development path, such as diversifying its business and launching M&A activities, instead of emphasizing independent development as before.