Gree Electric Cracking the Household Photovoltaic Market
Miss Dong Mingzhu, the chairwoman of Gree Electric who is also hailed as ‘one of the toughest businesswomen in China’, is ready to aim at the household photovoltaic market following her successful venture into new energy auto industry.
Household photovoltaic power device has been well recognized with years of dedication and promotion of the governments, enterprises and the whole society. At present, Chinese household photovoltaic market is of great demand especially during the booming period. Miss Dong’s attempt to tap into the household photovoltaic market will bring her the unrivaled dominance over the market.
Gree Electric adopts the system integration into household photovoltaic power device so as to purchase the innovated and money-saving household appliance. On the basis of standard configuration of 3-5 kw rated output, Gree household photovoltaic power market is planned to make the turnover of ￥20 billion with the minimum yearly shipment volume of 1 million sets.
Gree Electric has been prompt to expand the market with the help of its tens of thousands of physical stores and agencies nationwide. The strongest weapon of Dong is her competitive price to install the power product of less than ￥5.8 for each watts. Furthermore, Gree Electric beats other medium and small enterprises hollow at the supporting financing measures. The clients can take the household photovoltaic power product back home only with 20% down payment.
Gree Electric stepping into household PV market will undoubtedly subdivide the existing market pattern. Hundreds of medium and small enterprises will face a serious challenge of market dominance, and the whole industry will encounter the reshuffle. Whilst the Gree is much more likely to take over the most of household photovoltaic poverty alleviation market and photovoltaic household well-off market.
Gree Electric under the leadership of Miss Dong has made the annual output value of about ￥300 billion, which is equivalent to that of photovoltaic industry. Backed by the finished distribution channel and after-sale service system, their terminal sellers are able to master the skills of installing the household PV devices just with the short-time training. And so far, no company in photovoltaic industry is capable to compete with Gree, nor the top three solar industry bigwigs which are Trina Solar, GCL, JinKo Solar.
Gree also has the fulfilled confidence to show its marketing strategy to the existing photovoltaic developers. Owing to the lack of time and money on the marketing, the existing photovoltaic enterprises are hard to compete with Gree.
Nevertheless Midea, the household appliance tycoon who also owns the completed distribution channel system, is a vigorous competitor for Gree. In fact, the industry leading enterprises have been well recognized by the customers with their features and services. It won’t be a long time before Haier, Gree and Midea forming a new tripartite confrontation pattern.
Cooperation Tips the Scales
The cooperation with the existing photovoltaic leader companies tips the scales for Gree, Haier or Midea. Of course no suppliers will turn down their order and at that time the three bigwigs could make fortune with the lowest cost.
It is beneficial for the customers as they could obtain a good service on the household photovoltaic power stations. It is predicted that the price of system installation of Gree Electric in 2018 will be at around ￥5.
The dedication of the three leading enterprises into the household photovoltaic power station market has greatly facilitated the market and demand. Maybe in the short term, it may also stunt the existing photovoltaic enterprises. All in all, the advantages always overweight the disadvantages.
Essentially Gree is building up an opening platform with its service channel and brand to welcome all the leading photovoltaic enterprises. Besides, Gree considers to compete with Haier and Midea so as to expand the application of household photovoltaic power stations and promote the overseas market development.
Even though the household photovoltaic market accounts for less than 10% of the whole applicant market, the future development is promising. Particularly the involvement of the several leading companies will create a larger market potential.
Mr. Shi Dinghuan, as the chairman pf CRES and the former Counselor of State Council, holds the view that the engagement of Gree, Haier and Midea contributes to the promotion of household photovoltaic power station. It also has positive impact on the improvement of service, price reduction system and market application expansion. For the photovoltaic industry businesses, they must have the courage to face the challenge while the companies of household photovoltaic retailing should spare no efforts to adjust their marketing strategy. As for those who tend to market into this industry, they should be cautious about the assessment in case of economic deficits. In the shared development market, the photovoltaic industry is supposed to cooperate with household appliance leaders for the win-win future.
By now, Chinese photovoltaic industry has achieved an unprecedented prosperity. It is the right moment for Miss Dong to tap into this industry. Now we can imagine the moment of significant integration between the household appliance industry and the photovoltaic enterprises, for the shared market, for the utmost service.
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