What about Air-conditioning Companies at the Bottom of the Canyon?

In the face of problems and challenges, what is more critical now is what can we do in times of crisis, what opportunities can we seize to minimize the impact and suppression of this epidemic?

First, upstream and downstream manufacturers should regain confidence, work together to overcome difficulties.

The epidemic caught the entire industrial chain off guard, and production and business strategies were severely disrupted. In the face of common suffering, it is even more necessary for upstream and downstream manufacturers to work together and work together. At present, all upstream and downstream manufacturers are actively preparing for resumption of work, and masks and other resources are being actively deployed to adjust plans and goals together to ensure normal production.

Second, adjust the product structure along with the trend, and research and develop functional products that are substantially effective.

The epidemic struck, and emerging brands focused on health benefited a lot during this period. Let's see that the consumer end of the Chinese market has changed a lot now. At the same time, we can also see that invisible viruses are more threatening than visible bombs. Therefore, products with sterilization, disinfection, cleaning, and purification functions will be used in the future. There will still be great market opportunities.

For air-conditioning companies, whether the main functions such as health and purification can really play a substantial role, how can they adjust the product structure or function in accordance with market changes and consumer preferences, and grasp the market opportunities is the current priority.

Third, the entire machine company needs to lock up some supporting resources in advance.

At present, such long downtime and the uncertainty of resumption of work actually have a greater impact on upstream supporting companies.

In terms of parts and components, since the rotor compressor was prepared by the company years ago, the overall supply can still be balanced. In terms of chips and control devices, because the core IPM raw material wafer production capacity of the inverter air conditioner is relatively large abroad, the epidemic situation caused in the short term. The impact should be small.

However, attention needs to be paid to the bulk materials. Since the supply of high-standard silicon steel and other materials began to be tight a year ago, it can be expected that this situation will be further exacerbated by the impact of the epidemic and the uncertainty of upstream companies' resumption of work.

The other is copper. On December 26, 2019, the CSPT negotiation team including Jiangxi Copper and Tongling Nonferrous Metals, a total of 10 companies reached a production reduction agreement at the copper smelting company Fuzhou meeting. The rebound in copper prices provided good support. Locking resources in advance is the primary factor in ensuring smooth production after the epidemic is over.

Last but not least, the epidemic situation has hindered offline sales, but the importance of online channels has become more prominent.

Under the pressure of such an environment, it is also forcing traditional home appliance distributors and channel dealers to accelerate the transformation of new retail and find more sales channels. It is reported that during the epidemic period, some dealers used live video, online interaction, and other methods to store water and even convert it for sales, and to prepare for market sales after the epidemic in advance. The proportion of online retail will increase in the future.

The Future is always better than the Present

For air-conditioning companies that are now under more pressure, will they continue to expand their business once the epidemic is over? The answer is yes.

Finance writer Wu Xiaobo said that in the face of sudden crises, people tend to overestimate the immediate difficulties and underestimate the long-term opportunities and opportunities for change. Industry Online also made a preliminary judgment on the development of China's air-conditioning in 2020, and explained the future development of the industry from an objective perspective.

First of all, the development trend of the entire industry will show a relatively low-to-high development pattern, but the scale of the shipping end still has insufficient depth of callback. Therefore, the industry side of the shipping end of fiscal year 2020 still holds a relatively conservative judgment. Overall Shipments fell slightly. However, in the long term, there is still room for the development of China's air-conditioning industry, and steady growth is the main tone.

Secondly, the ongoing price war before the holiday will gradually slow down in the face of various cost increases. However, it is not excluded that some companies expect to adopt energy efficiency upgrades but not increase the price of products during the implementation of the new standard. Maintaining share and competitiveness requires good supporting resources and precise cost control. Although the channel and factory reserve inventory is high, it also guarantees that the channel will be available for sale as soon as the epidemic is over. How to clear and realize the high inventory of some enterprises is still an important task at present.

Third, the brand concentration of the home air-conditioning industry will continue to increase, leading companies have raised the threshold with price wars, and the new air-conditioning standard has once again raised the competition threshold. Enterprises that can quickly step on the nodes, smoothly transition, and seize opportunities will have stronger anti-risk capabilities in this test, thereby improving competitiveness and better adapting to future market competition.