The macro economy maintains stability during the first half of 2017 and central air conditioning market has obtained its biggest growth over the past five years. What kind of power drives the industry to achieve such a high growth? What are these opportunities in the near future? And is this high growth constant?
Central air conditioning market has confronted several prominent new changes in the first half of 2017.
Take a look at its actual scale, the sale volume of central air conditioning reached 42.4 billion yuan in the first half of 2017, up by 20.5% compared with last year, which sets a new record. Reasons are as below. First of all, drive of home decoration market, especially the growth of air hose and VRV air conditioning system. Many brands are up by 50% compared with last year, and some brands are even near 100%. Secondly, the demand in niche market increases, such as the auxiliary areas of transportation, medical treatment and education. In addition, there is also a small rise in industrial project. These factors jointly promote the central air conditioning market to its fast growth in the first half of 2017.
Take a look at sale structure, domestic sales occupy nearly 90%, which can be seen that the status of domestic market is still unshakable, and the main reason is that the domestic home decoration market is quite hot now. Certainly, there are new opportunities in overseas market because of the demand of newly emerging countries increases, which is mainly located in India, Southeast Asia and the Middle East. Moreover, the implementation of “One Belt One Road” policy also drives the growth of central air conditioning along the Silk Road.
Take a look at brand competition, Chinese and Japanese companies, such as Midea, Hisense and Hitachi, are leading the VRV industry, and their contributions are mainly on household central air conditioning. Euramerican companies dominate the water chilling unit industry, which is over 60%. This market still needs to be explored by Chinese and Japanese companies.
Analyzing the above data, we can see the new opportunities in the near future.
Drove by the demand of home decoration and third and fourth-tier potential market, the domestic market will increase rapidly. It is expected that the whole year scale will be 77 billion yuan, up by 17% compared with last year. Meanwhile, against the background of stable recovery of global economy, the overseas market is actively influenced by Chinese brands, and its scale will increase to a greater degree, showing the growing trend in the near future. It can be concluded from this that both domestic and overseas market all have certain opportunities.
From the regions, the East China market still dominates the domestic market. Drove by the “coal to electricity” policy, the North China market will have a good performance. With the rapid growth of economy in the Southwest China, the demand for central air conditioning will also increase. Among the overseas markets, Asia will still be the biggest.
From the channel, factors like new groups and consumption upgrade will still support the development of exclusive shop, accelerating the expansion of every brand in retail market. Besides, there is no doubt that more attention will be paid to online mode. In the future, vendors will strive to be the partners with e-commerce channels such as JD, Tmall and Suning. The sale scale of every brand on e-commerce platform will also be doubled. Besides, companies will successively set up their own online shops.
From the applied areas, home decoration and rail construction will still be the hot spots. Areas such as education, medical treatment, data center and heating system reform are potential, worthy of attention.
From the policy, the official implementation of VRV energy efficiency logo will promote the further upgrade of related products. In addition, the new energy efficiency standard is expected to carry out in 2018, which will also promote the upgrade of products. As for companies, high product standard will bring more challenges, and technology upgrade is inevitable. Meanwhile, it is also an opportunity. High standard will accelerate the survival of the fittest. More and more lower energy efficiency products will be wiped out, which is good for the long and healthy development of the whole industry.