Welcome to Ding Technology's Home Appliance Buying Guide. In the previous 8 issues, we discussed "Washing Machines," covering topics such as the trend of new products in 2024, performance indicators and functional parameters (cleaning ratio, capacity, motor speed, etc.), installation and usage tips (top and bottom drainage products), and product types (washer-dryer combos, integrated washer-dryers, segmented washing machines, mini washing machines, etc.). You can search these topics by keywords for future reference. We'll conclude our discussion on washing machines here and periodically update you on new trends and emerging product categories.
With the Start of Summer less than a month away, we're entering the traditional peak sales season for air conditioners. In the next few issues, we'll dive into the topic of "Air Conditioners."
As of April, the daytime high in Beijing has already reached 28°C (82°F). Our friend Lao Yuan mentioned, "It's time to replace the air conditioner at home that's been used for ten years. What do you recommend this year?" Based on our observations of market and production trends in the latter half of last year and the first quarter of this year, new product launches at industry expos, and data reports from institutions, we shared some insights, which we'll also share with you.
In broad strokes, the household air conditioning market is still dominated by split and cabinet units. In terms of form, air conditioning brands are neither aggressive nor conservative. Among the "big three" in home appliances, they are the most stable presence.
So what's rolling? Prices. Over the past few years, the air conditioning market has mostly been about rolling prices. Let's start with "price" as a central theme.
Competitive markets offer affordability:
In terms of cooling and heating capacity, 1.5-ton split units and 3-ton cabinet units are the mainstream. Apart from these, larger split units are worth noting, especially in online channels where such products are mainly aimed at popularizing, trading popularity for price. For instance, 2-ton split units seem to be the focus of brand competition because they meet the needs of current popular layout patterns such as large master bedrooms and small living rooms. Another hint is that cabinet units have shown a trend of price increases offline.
Looking at the market landscape of brands, top brands, considering profitability, have been keen on the high-end market in recent years. The subsequent brand tiers mainly compete in the mid-range market, offering more product and brand choices, as well as relatively better bargaining space. Especially online, attention can be focused on products priced between 2000 and 4500 CNY.
Having discussed the "low" of "price," let's delve into the "new" of "selling points."
One of the continuously hot selling points in recent years is the "new first-level energy efficiency." After the implementation of the "strictest ever" air conditioning energy efficiency standards in the second half of 2020, the "new first-level energy efficiency" has remained popular. However, after several years, there are now quite a few "new first-level energy efficiency" products in the market. Sales-wise, for example, last year, "new first-level energy efficiency" products accounted for about 80% both online and offline. So, personally, it's not necessary to pay too much attention to the "new first-level energy efficiency" emphasized by salespeople. First, consider factors like demand, budget, and so on. Compared to others, new first-level energy efficiency products have significant advantages in energy saving, environmental protection, temperature adjustment comfort, and noise control. However, careful consideration is needed regarding price, maintenance costs, and applicable scenarios.
In terms of functionality, it's mainly related to "healthy air." Compared to the past focus on temperature regulation, air conditioning products are increasingly focusing on regulating the overall indoor air environment, including cleanliness, freshness, and even odor.
On one hand, antibacterial technology is being more widely used, such as silver ion filter antibacterial, UVC ultraviolet antibacterial, ion purification, high-energy pulse, and so on.
On the other hand, in terms of vertical segmentation categories, brands including Hisense are focusing on fresh air conditioners, showing significant growth in market share. For example, the growth of fresh air split units online and offline has exceeded 10% and 20%, respectively. More second-tier brands have also joined the competition in fresh air conditioners, leading to a decrease in average prices.
The upgrade and iteration of fresh air conditioners are ongoing, and features like "oxygen enhancement" and "humidification" are becoming the main selling points of new products. For example, during this year's AWE, there were appearances of products like Hisense's fresh air conditioner Little Oxygen Bar X5, TCL's Little Blue Wing P7, Changhong's New Oxygen Cabin, and Aucma's Linglong.
Taking Hisense's fresh air conditioner Little Oxygen Bar X5 as an example, Hisense has injected cutting-edge technologies and applications such as oxygen enhancement, antibacterial, soft wind, and AI into the fresh air conditioner Little Oxygen Bar X5, reproducing the natural and fresh air environment of the "natural oxygen bar," aiming to become the air steward of households with healthy and comfortable characteristics.
Apart from fresh air conditioners, there's another "new species" – integrated cabinet units. This seems to be air conditioning brands' adaptation to the trend of "integration" in the overall home appliance product landscape. Integrated cabinet units combine the capabilities of "air environment" home appliances such as fresh air, air purifiers, humidifiers, dehumidifiers, etc., similar to other categories of integrated home appliances, emphasizing multi-functionality and space efficiency. However, such products are typically positioned in the high-end segment. For example, during this year's AWE, Casarte launched an "integrated air machine" that can independently activate functions such as dehumidification, humidification, antibacterial, purification, and formaldehyde removal, and is equipped with "variable soft wind."
In addition to expanding the core air conditioning capabilities horizontally, air conditioning products with built-in smart voice capabilities are also increasing. This is partly due to the continuous breakthroughs in AI technology in speech recognition and interaction capabilities, and partly due to the popularity of large models and generative AI concepts. (Thanks to more friends for sharing, please also indicate "Ding Technology")
