Gree, who is obsessed with mobile phones, is constrained to “steal chickens and lose rice”

If you talk about perseverance, no one can rank ahead of Dong Mingzhu.

Recently, without any warm-up, a new product named “Dasong 5G mobile phone” quietly registered in Gree Mall, priced at 2,699 yuan. This is already the fourth generation of Gree mobile phone products since it came out in 2015. However, the first three generations of Gree mobile phone products have not made waves on the market. So, can the new generation of 5G mobile phones launched this time help Gree mobile phones open up a whole new situation?

Gree obsessed with mobile phones

Gree has been involved in the mobile phone industry for a long time. Within 5 years, Gree Mobile has launched 4 mobile phones in three generations. I still remember that before Gree’s first mobile phone came out, Dong Mingzhu confidently said, “If I make a mobile phone, I will let consumers not change their mobile phones for 3 years.” He also made the rhetoric of selling at least 50 million units in a year. As we all know the ending, we can see from the sales of Gree’s third-generation mobile phones that are still sold in Gree Mall, which is only about 5,000.

The failure of Gree mobile phone did not extinguish Dong Mingzhu’s mobile phone dream. Although it frankly accepts that Gree mobile phone sales are not outstanding, it also denies that Gree mobile phone has failed. At present, the quietly coming out of Dasong 5G mobile phones also allows us to once again witness Dong Mingzhu’s dedication to the layout of mobile phones.

However, blind persistence and perseverance often fail to achieve good results. “Four Books Yu” once said: I don’t know what I can’t do, and I’m a fool. Especially in the mobile phone industry, it does not rely on perseverance and “passionate blood” to achieve fame, but also requires market training, user recognition and keeping up with the pace of the times.

For Gree mobile phones, not to mention the gap between the brand and Huami OV, it is also far from Lenovo, Meizu, and Nubia, which have a glorious history. In addition, in terms of configuration and positioning, its lagging mobile phone configuration and extremely high positioning have never been recognized by consumers.

Smart home, Internet of Everything, smart phones are necessities?

So, why does Gree still not give up the mobile phone field under such circumstances? In Blue Technology’s view, it is precisely because Gree is committed to diversified development under the wave of 5G, and mobile phones will also be an important part of Gree’s diversification and smart home strategy.

At the end of 2019, Gree introduced its smart home blueprint of “Internet of Everything, One Response to One Hundred Responses” at the press conference. Today, Gree’s release of its first 5G mobile phone is obviously to establish its own ecological chain. On the product details page of the newly released Dasong 5G mobile phone, Gree also focused on the relevant functions of the mobile phone in realizing the intelligent interconnection of the whole family scene.

However, can mobile phone products developed with the core of connecting smart homes really be recognized by consumers? In fact, before Gree, home appliance companies including Hisense and TCL have also entered the mobile phone field for their own development. However, in the current domestic mobile phone market, the market share of mobile phones with a home appliance brand background is very small.

On the one hand, the sales method of the home appliance industry does not apply to the mobile phone field; on the other hand, consumers’ demand for mobile phones is communication and entertainment, not control of home appliances. The difference between the mobile phone industry and the home appliance industry is that in addition to the need for sophisticated manufacturing processes and various meticulous performance tests, it also needs to pass a series of scenarios of communication and network capability tests. It also needs to communicate with various operators, upstream and downstream companies. Cooperation is also very different from the independence of home appliances.

Containing energy Gree “Stealing chickens will not lose their rice”

Compared with traditional home appliances, mobile phones have faster iterations as fast-moving consumer goods. However, the brand awareness, reputation and technical capabilities of mobile phones require long-term investment and development. It must also be trusted and recognized by companies such as chips, design, screens, and software. In these aspects, the accumulation and experience of traditional home appliances are relatively weak.

According to Canalys statistics, in the third quarter of this year, the top five manufacturers in China’s smartphone market shipments accounted for 95.2% of the market. It can be seen that brands in the mobile phone market in my country are becoming more concentrated. As a newcomer in the mobile phone market, Dasong 5G mobile phones are difficult to obtain users’ choices without sufficient competitive advantages. When the configuration and price of Dasong’s 5G mobile phone are not satisfactory, it is difficult for many people to buy it out of curiosity.

As Gree continues to lean towards the mobile phone field, its proud air-conditioning category has also encountered a “head crisis.” Once upon a time, Gree would think of air conditioners, and Gree would naturally think of air conditioners. It can be said that Gree is one of the benchmark companies in the air-conditioning industry.

According to statistics, Gree’s offline retail market share of air conditioners in 2019 was 38%, ranking first in China. Nowadays, with the increasingly fierce market competition, the advantages of Gree air-conditioning are gradually being overtaken by Midea.

According to the semi-annual report issued by Gree Electric, in the first half of 2020, Gree Electric achieved operating income of 69.5 billion yuan, a year-on-year decrease of nearly 30%; realized net profit of 6.36 billion yuan, a sharp drop of 53%; in contrast, Midea’s half-year According to the report, Midea Group’s revenue in the first half of 2020 was 139 billion yuan, a drop of nearly 10%; its net profit reached 13.9 billion yuan, a drop of 8.3%.

In the air-conditioning category, Gree’s air-conditioning revenue in the first half of 2020 was 41.3 billion yuan, while Midea’s revenue was 64 billion yuan, surpassing Gree for the first time, becoming China’s largest air-conditioning group in one fell swoop.

More noteworthy is that the annual report shows that Gree’s air-conditioning revenue accounted for as high as 60% in the first half of this year, household appliances and smart equipment accounted for 3% and 0.3%, respectively, and air-conditioning revenue still accounted for more than half of the country. .

In contrast, Midea’s product line is more abundant. In the same period, Midea’s air-conditioning revenue accounted for 46%, consumer electronics accounted for 38%, and robotics and automation system revenue accounted for 6.8%, leading outside Gree in the air-conditioning field. , There is also a relatively complete layout in the smart home product line. It can be said that it is surpassing Gree in all directions.

Gree’s development of mobile phones is understandable, but the future of mobile phones is full of uncertainties. For Gree, one of the biggest crises right now is the position of the leader in the air-conditioning industry. Once Midea takes over, it will be very difficult for Gree to stand up again in the future.

For Gree, mobile phones are an offensive and riskier; air-conditioning is a defensive, after all, it has a market foundation that has been the number one in the market for many years. Some people say that instead of developing 5G mobile phones, Gree should desperately maintain its position in the air-conditioning industry and compete with Midea. The risks involved may be much lower than the investment in mobile phones. Otherwise, once the 5G mobile phone fails to meet expectations, and the status of air-conditioning is taken down by Midea, Gree may not be worth the loss. If this is the situation, maybe the opportunity for beauty has really come.

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