As pioneers of Gree's new retail revolution, Hebei Gree has achieved unprecedented success under the drive of the new model. It's reported that in the first quarter of 2024, Hebei Gree's dealers placed orders totaling over 1 billion RMB, with mid-to-high-end sales accounting for over 55%, and installations witnessing a 30% year-on-year increase, marking the best performance in recent years. This historic breakthrough demonstrates that Gree Appliances' new model withstands the market test, allowing dealers to expand their business with greater confidence, joy, and peace of mind.
Traditionally, the basic mode of distribution channels primarily revolves around product-driven operations, leaving dealers facing the dual pressures of inventory and capital turnover. With the continuous intensification of competition in the household appliance market, Gree Appliances has targeted the pain points of the traditional channel operation model. By enabling direct cooperation between dealers and Gree headquarters, eliminating intermediary links, and relieving dealers of the pressure of prepayment, dealers can place orders and schedule deliveries according to demand, with visible account balances and flexible fund allocation.
"This new low-cost, pressure-free operating model of Hebei Gree has completely changed the issues of unclear rebates, discount redemption, and most profits being retained by general agents under the old model. Under the current cooperation status, I feel very reassured and see more hope," said Song Qingwei, from Kerun Electric, a Gree dealer in Hengshui, Hebei.
To accelerate dealer cash flow and enhance operating income, Hebei Gree insists on expediting the settlement of dealer expenses and implements measures such as free delivery, achieving a service commitment time of 48 hours province-wide.
"Now, under the new model, with direct support from headquarters and policy endorsement, last year's store profits have also improved significantly. This year, I plan to start upgrading to new exclusive stores, engaging in comprehensive Gree product management. A good image can better bring high-end and healthy Gree products to both new and old users," expressed Zhang Sufang, a dealer who has been operating Gree products for nearly 20 years, with happiness.
Cai Lianjia, a dealer of Baishun Trading in Cangzhou, Hebei, mentioned, "During the rush for Gree products when demand was high, Hebei Gree invested nearly tens of millions in terminal markets, especially in mid-to-high-end products. This has resulted in my exclusive store having a mid-to-high-end sales ratio of over 60% in the first quarter, with installation volumes over 1.4 times higher than the same period last year. The headquarters' investment in retail has given me confidence in stocking and rapid turnover this year. The capital turnover efficiency of my store will definitely increase from twice to at least six times, all thanks to Hebei Gree's new model, making my future operations more secure and practical."
These new measures, aimed at benefiting dealers, are rare actions among traditional channel operators in the past. Hebei Gree has opened up new possibilities, achieving a historic breakthrough of over 1 billion RMB in dealer orders in the first quarter of 2024, demonstrating absolute market recognition after a year of adaptation and experimentation with the new model.
The new model brings advanced productivity, which in turn benefits both users and dealers. Gree Appliances' new approach that allows dealers to feel "reassured, joyful, and secure" is actually driven by the courage to face tradition and break through it, guided by the steadfast commitment to prioritizing customers and products. It also reflects the strength of being daring and responsible.
As a leading brand in the household appliance industry, Gree's rapid and effective innovation contributes to the overall growth of the industry and provides valuable experience for exploring new models.
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