Xiaomi‘s air conditioners are blowing hot and cold (pun intended) in China’s online market, rapidly gaining ground on long-time leader Gree. According to AVC data, Xiaomi currently holds the third-largest market share at 11.82%, a significant 4.31% year-over-year increase. This growth spurt puts them right behind Gree’s 24.04% share, which has seen a concerning 3.01% decline in the same period.
Xiaomi climbs to third in China’s online AC market
Midea remains the undisputed champion with a 25.01% share, but even they haven’t escaped the shifting market dynamics. Their average price point has dipped by 2.32%, reflecting a trend towards more budget-friendly options.
This is where Xiaomi thrives. Their air conditioners boast an average price of 2,281 yuan ($318), making them a compelling choice for value-conscious consumers. This strategy seems to be paying off, with a JD.com delivery agent claiming earlier this year that Xiaomi deliveries have jumped from 20% to a staggering 70% compared to last year.
Meanwhile, Gree seems to be feeling the heat. Their recent financial report revealed a worrying 15.84% drop in revenue for the third quarter, totaling 46.939 billion yuan ($6.57 billion). This has prompted CEO Dong Mingzhu to take a rather bold marketing approach.
In a recent statement, she declared, “Only a fool wouldn’t use Gree air conditioners, which can save you 20%-30% on electricity costs each year.”
Since entering the market in 2021, Xiaomi’s shipments have surged, with 4.4 million units sold in 2023 and a 63% growth in early 2024, projecting over 7 million units by year-end. Analysts expect Xiaomi’s air conditioners to outpace even its own TV sales by 2026, marking a strategic shift in Xiaomi’s IoT revenue focus.
So, the question on everyone’s mind is: with Xiaomi’s ACs offering a compelling combination of affordability and features, will consumers choose the innovative upstart or stick with the established, if slightly flustered, Gree? Only time will tell who will reign supreme in China’s air conditioning battleground.
In related news, Xiaomi launched the Mijia Fresh Air Pro air conditioner last month, a 1.5 HP wall-mounted unit featuring 30-second rapid cooling, heating down to -35°C, HyperOS smart integration, AI-driven performance enhancements, and a starting price of 3,599 Yuan ($506).
(Via)
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