Chinese Air Conditioner Market Three Major Sales Model Analysis

Submitted by: Himfr Tian

In the air conditioning industry, our strength of a few large enterprises have taken a completely different sales model. One of the reasons is that several major brands to enter the air conditioning market in prior periods, after which the business is combined with the prevailing market conditions and sales model to build their own characteristics. After a continuous exploration and improvement, they still followed the first into the market, the basic framework established.

Analysis of the three major Chinese air conditioner market sales model, the whole country Chunlan mode Chunlan more than 1,500 dealers, each dealer have their own wholesale outlets and two distributors system. Chunlan the development of the dealer has a number of restrictive provisions of the scale, such as Chunlan dealer’s average monthly sales in the minimum not less than 40 million, the maximum not more than 1.2 million yuan, until the last two years before such mandatory relaxed.

In order for distributors to have a fairly standard business performance metrics Chunlan Group also established a 150 nationwide stores, but in order to avoid conflicts of interest with distributors, Chunlan store the size of not more than dealers level, in every city the number of stores also limited within 2 ~ 3, and sold in stores in pricing is also slightly higher than the dealer Chunlan price, this price stability, balance the market played a a positive role.

In this marketing model, manufacturers have to pay attention to in the sales channel the following situations:

1. To grasp the dealer’s choice;

2. Strict control of the market retail price, to maintain the unity of the terminal market price;

3. Good coordination between the regional distributor of conflict of interest.

Gree air-conditioning industry model, Gree, Kelon, Midea, and other enterprises use the distribution model is the “big incentive.” This model with the main difference between Chunlan model is that it does not limit a large-scale dealers, but all strive to cultivate in each region a number of big sales. To this end they adopted a set of effective incentive mechanisms, such as selling off-season as much as 7% -8% of the rebate, the year 2% -3% of the rebates, sales of the higher proportion of payment, rebate the more advanced.

Gree model has the advantage greatly reduces the cost of sales management. For large air conditioning business, if only to maintain in each region is closely related with several large distributors, easy to straighten out relations, close cooperation and coordination for the small dealer, you can let go by the big distributors to complete.

Haier Haier air conditioning mode method of distribution is it-yourself clothing. Both in capital cities, prefecture-level cities and county-level cities, Haier will build on its own branch network and sales channels, development of retail.

As the marketing center around the existence, Haier has capacity strictly selected retailers, and with marketing, publicity, held a variety of effective promotional activities, and to maintaining the brand image and future large-scale development has laid a good foundation.

This model has the advantage: the abolition of the intermediate circulation, reducing the cost of sales channels, manufacturers can really have their own retail network resources, it is beneficial for the retail terminal network control and management. At present, China can adopt this model in general is strong for a large group, large enterprises, but also one of the few.

The distribution issue, the feeling among manufacturers has been very subtle. The two are interdependent and neither can do without, and sometimes inevitable bumps. For example, manufacturers worried about the lack of loyalty to dealers to disrupt the market, but dealers complained that manufacturers policy changes, price varies, but also peers in the large market manipulation concerns.

Manufacturers on their own to maximize its interests as reflected in both how to eliminate this contradiction, to establish a relative balance the interests of the mechanism. From a market point of view, where manufacturers and distributors to maintain a healthy relationship, where consumers can get more satisfaction with products and better service.

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