Xiaomi Mi will enter the air-conditioning industry: Gree said that it is not easy to give birth

OFweek smart home network news a few years ago, Gree chairman Dong Mingzhu and founder of mine Xiaojun Lei in CCTV betting upset. Since then, Dong Mingzhu has made Lei Jun many times, and has since entered the field of mobile phones. He has already launched two generations of mobile phones. Lei Jun does not seem to show weakness. Latest news that millet will enter the air-conditioning industry!

According to domestic media reports, a recent product named “Mijia Full Inverter Air Conditioner” appeared in the national 3C quality certification list, and the manufacturer was commissioned by Changhong Electric.

The reporter learned from stakeholders in Sichuan Changhong that “some models of millet air conditioners are indeed manufactured by Changhong.” And millet insiders said: “In the future there may be more models of millet air conditioning products available.”

Getting through the entire home appliance manufacturing industry seems to be the ambition of Xiaomi's Mi family. Starting from small household appliances, the products covered in the Mi’s ecological chain have everything from the bedroom to the kitchen to the living room. As early as 2015, Xiaomi began to try to enter the air-conditioning industry. At that time, he chose to hold hands with the United States and jointly launched “i Youth Smart Air-Conditioning”, but the response was flat.

Regarding the entry of Xiaomi in the air-conditioning industry, Gree’s insiders said that “welcome competition, but it is not easy to give birth.”

In recent years, the air-conditioning industry has been shrinking overall. According to statistics from relevant agencies, the retail sales of China's air-conditioning market declined by 4.8% in 2015 compared with the same period of last year. Even though there was some recovery in 2016, the overall growth rate was almost stagnant. It is difficult to have a higher breakthrough space, which is similar to the current mobile phone market. Gree, the United States and the duopoly also occupy nearly 70% of the market, Xiaomi want to achieve the air conditioning market, "change", it is indeed a bit difficult.

Millet makes air conditioners just like Gree builds mobile phones, and more skeptical sounds will only come out. From the perspective of the layout of the rice ecological chain, Mi Jiaquan inverter air conditioner is bound to be a product to the market at a low price, after all, with sweeping robots and laser television.

In the eyes of many manufacturers, millet has become the market's spoiler, but in the air-conditioning industry, such as manufacturing-based, cost-control industries, it is too difficult to rely on behalf of the foundry alone.

On the other hand, Xiaomi's advantage lies in the software, as well as the connection to the entire home. Taking cell phones as the center, it is the final goal of Xiaomi to make a closed loop of smart home ecology. However, air conditioners are large items in traditional home appliances. Even if there are Changhong bricks, Xiaomi also lacks certain core technology. For example, the core components of air-conditioning compressors, Gree and the United States have their own technical advantages, on the other hand, millet is still unknown. At the same time, Xiaomi still needs to invest more money and manpower in the installation process, and the future after-sales service will be a challenge for Xiaomi.

Air-conditioning is not a mobile phone, and there is a big difference both in the life cycle and after-sales service. For traditional household appliances, consumers are more willing to buy traditional brands, such as Gree, Midea, etc., not only in quality assurance, but also in maintenance and installation. For Xiaomi’s emphasis on home intelligence, traditional companies are doing a better job in terms of basics and intelligence. Moreover, smart home is still only a conceptual thing, and gimmicks are larger than practical ones.

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