By Zhuang Guangping

"I was bathed in sweat before getting an air-conditioner". In summer, as temperature rises, many consumers are having such experiences. The air-conditioner market is enjoying a peak season of sales. In Beijing, for example, so far Midea has seen a jump of nearly 40 percent in air-conditioner sales from 2009; Gree, Haier and Chigo also have very impressive performance in Beijing market.

On the strength of frequency conversion technology, mute technology and other innovative technologies and optimized services, homemade air-conditioners have firm dominance over the market. Four leading homegrown brands take up a market share of more than 80 percent altogether.

Building Brands with Core Technologies

Driven by the policy, energy conservation becomes absolute leading selling points among brand air-conditioner makers.

After the government subsidizes energy-saving products for several years, energy conservation is now deeply rooted among the public. In particular, in June this year, with the popularization of the new energy efficiency labels for air-conditioners, subsidies for fixed frequency air-conditioners below Grade 2 have been removed, which gives a boost to air-conditioner makers to manufacture energy-efficient products. Midea, Gree, Kelon and Chigo all highlight their own core energy-conservation technologies in the marketplace.

On July 15, Gree unveiled its three core proprietary innovative technologies in the field of air-conditioners. Almost at the same time, Midea also released its five core technologies in the field of frequency conversion. Gree's three core technologies fall into the areas of variable frequency, fixed frequency and central air-conditioning. Midea's five core technologies are all about frequency conversion. Although the pivot and content of two A/C vendors' technologies are different, both of them stick to independent innovation.

"Gree has no choice but to march forward, and the pressure turns into an impetus for us. By exploring core technologies through independent innovation, we have gained a central position in the industry, which pushes us forward and gives us greater vitality." said Dong Mingzhu, President of Gree Electric Appliances.

According to Wang Jinliang, Vice President of Midea Group's China Marketing Headquarters, at present, competition is no longer limited to price and hyping of concepts in the variable-frequency air-conditioner market. Rather, it is about innovation strength of core technologies, involving the industry chain, frequency conversion technology chain, and product value chain.

Capturing the Market with Fine Services

The hefty rise in the sales volume of air-conditioners in this summer poses an enormous challenge to air-conditioner makers' service capability. On July 1, 2010, the Ministry of Commerce released the first three service norms for the air-conditioner industry: Installation Service Specifications for Room Air-conditioners, Quality Inspection Specifications for the Disassembly and Assembly Service of Room Air-conditioners, Disassembly, Cleaning and Maintenance Specifications for Room Air-conditioners. These norms provide rules on installation, maintenance and cleaning, thus, in the air-conditioner industry the focus of competition is extending from products and technologies to services, and air-conditioner enterprises are striving to play the service card.

By improving its service system, Midea keeps enhancing user experiences through fine the quality of service. It aspires to build the largest service network, with the most professional engineers, most prompt response, most all-round follow-up visits, most sound mechanism, most thorough commitment, and the warmest attitude of service.

According to Huang Tonghua, head of Chigo's PR department, the implementation of the three service norms is very much conducive to making up for the lack of service standards for home air-conditioners and improving the industry's overall service level. While striving to build world-class quality, Chigo works hard on the improvement of after-sale service. Adhering to the tenet of "responding quickly and acting now", the company has 36 customer service centers and over 3,000 service outlets across China. With a national service network, it delivers fine-quality services wherever its products are sold. Back in 2002, Chigo put forward the commitment of "lifetime free parts replacement".

Now, along with the rapid development of the home appliances industry, competition is extending from sales to services, and the quality of after-sales services has become the focus of attention. The promulgation and implementation of the three service norms in the air-conditioner industry will further propel the upgrade of services in the industry, and fine service quality and safeguard measures will become crucial factors for competition in the home appliances market.