In contrast to previous years' fervor, this year's 618 shopping festival saw an unprecedented calm in the home appliance industry. The sluggish response in the major home appliances sector, in particular, seems to signal a new norm in consumer behavior. Does this reflect a cautious mood amid the current economic landscape, or hint at profound shifts within the industry itself? This year's 618 event undoubtedly cast a contemplative stone into the home appliance market's pond.
According to Sandalwood data, unlike the sizzling air conditioner market amidst last year's heatwaves, cooler temperatures this year, combined with weakened consumer spending power, led to a chilling effect on air conditioner sales, resulting in a -16% y/y in overall China online sales. Amidst this downturn, Xiaomi's air conditioner sales soared like a refreshing spring, achieving a remarkable +31% y/y growth. Not only did it leap to third place in sales value, but it also surpassed Gree in sales volume, claiming the second spot. This Xiaomi-led turnaround signifies not just numerical superiority but also the clash between internet-driven thinking and traditional manufacturing might.
On the JD platform, a telling comparison can be made between two popular 1.5-horsepower air conditioner models: Gree's Yunjia series , priced at 2799 yuan, stands in contrast to Xiaomi's Mijia Super Energy Saving series, which sells for a mere 2099 yuan, a striking 700-yuan difference. Amidst economic tightening, consumers' pursuit of value for money is increasingly evident, and Xiaomi's AIoT smart connectivity feature further enhances its appeal within the smart home ecosystem, blending affordability with technology to facilitate its standout success.
In terms of price band, Gree adhere its position in the premium segment with an average unit price around 4000 yuan, firmly grasping the mid-to-high-end market. Xiaomi focuses on the mass market with its affordable range of 2200-2400 yuan, with Sandalwood data indicating over 40% of its sales value stems from products in the 1000-2000 yuan bracket, effectively catering to cost-conscious consumers. Gree is sticking to the high-end market, the ASP of about 4,000 yuan, of which more than 5,000 yuan of high-end market share increased year by year, contributing to its more than 40% of sales, high-end image is solid.
The "sparring" between Dong Mingzhu and Xiaomi transcends a mere "technology" dispute; it embodies a profound clash of ideologies and strategies between established appliance giants and internet upstarts. As consumption patterns evolve subtly, pondering the future trajectory of the home appliance industry becomes a pertinent question for all stakeholders. This 618 has served as a microcosm of industry transformation and the clash between innovation and tradition. Anticipation abounds for the coming days, hoping to witness even more dazzling sparks in the home appliance market.
Sandalwood data provides daily e-commerce sales data for key brands across the entire platform. If interested, please contact us service@sandalwoodadvisors.com
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