Can Gree replicate its mobile phone sales myth by “encircling Wei to save Zhao”?

Gree 's brand department should have exceeded its KPI this year. Since Dong Mingzhu announced that she would make mobile phones, the relationship between Dong Mingzhu and Lei Jun and the details of each Gree mobile phone have appeared in the headlines of major media without exception. Not long ago, Dong Mingzhu appeared at Sun Yat-sen University, and the first appearance of Gree's real phone made another round of headlines. Gree's mobile phone is a foregone conclusion. When everyone is focusing on Gree's mobile phones, Tiege suggests that everyone take a look back at Gree's old business of air conditioners.

Air-conditioning business is declining, Gree needs new concepts

In 2014, the retail sales volume of air conditioners in China reached 43.9 million units, a year-on-year increase of only 0.7%. Last year, the real estate industry continued to decline, and there was a problem of unsalable products in third- and fourth-tier cities. These unfavorable factors have affected the sales volume of the home appliance industry. Gree's stock price basically remained at around 30 yuan last year, with almost no major changes in the past year. These conditions tell us that the home appliance industry, especially the white goods field represented by air conditioners, has entered a relatively weak state. It has become inevitable for home appliance companies to find new business growth points again.

Therefore, Gree was eager to launch the mobile phone project. After the project was announced, the Gree brand frequently appeared in major headlines, strengthening the public's brand awareness. When Dong Mingzhu said that the mobile phone should be usable for three years, the public who did not know the truth was quite disdainful of this, thinking that Dong Mingzhu was using hardware manufacturing thinking to make mobile phones. In fact, Dong Mingzhu's original intention was to use this seemingly stupid slogan to strengthen Gree's manufacturing advantages and thereby boost the entire Gree manufacturing brand.

In addition to branding, making mobile phones has found a new business growth point for Gree. Regardless of the actual effect, the continuous publicity stories alone are very attractive. As a result, since Gree announced its mobile phone business, Gree's stock price has continued to rise, and has been around 45 yuan recently.

Through the above analysis, it is not difficult to conclude that Gree’s mobile phone business is actually a cover, and its original intention is still in the traditional manufacturing industry.

Can Gree’s wishful thinking really come true?

Gree’s plans are very ambitious and its ideals are very ambitious, but the reality is quite bleak.

First, Gree is strong in hardware, but its mobile phones rely on software.

Gree air conditioners and Gree mobile phones are actually two completely different industries, one is hardware-oriented and the other is software-oriented. Luo Yonghao said on Weibo yesterday that traditional mobile phone manufacturers have been ignoring software and operating systems, and traditional manufacturers ignore them while Gree does not have them at all.

If Gree cannot improve its software level, the end result will most likely be that the user experience will be lowered due to software problems, making it impossible for the hardware advantages to be truly reflected.

Second, the mobile phone market is a red ocean, and Gree mobile phones are unlikely to make a big splash

At present, the domestic mobile phone market is basically in a competitive state where Apple , Samsung and Xiaomi are leading and "China Cool Alliance" is chasing fiercely. If one manufacturer does not make a big mistake, the situation will not change much in a short time. Even 360 , which has been eyeing the mobile phone market for a long time and has a software foundation , has to rely on Coolpad to realize its mobile phone dream. How much advantage does Gree have in making mobile phones in such a large cross-border business? According to traditional business school theory, when a company wants to enter an unfamiliar field, if the field has already become an oligopoly, the company should choose to innovate the business model and avoid the edge to win the war. In Gree's external statements, there has not been any innovation in the business model for the smartphone market. Tiege really doesn't know where Gree's reckless self-confidence comes from.

The reason why it is making headlines now is that the market is quite curious about the air-conditioning company making mobile phones. When the product is actually launched and the boos continue, the headlines may be negative. At that time, Gree mobile phones will become a negative asset of Gree Group, which is really not worth the loss.

There are also various gossips circulating about Gree making mobile phones, such as Dong Mingzhu and Lei Jun are angry, and Meizu is provoking Gree. Tiege thinks these are completely unreliable. Tiege still believes that as an entrepreneur, Dong Mingzhu has the most basic professional qualities. As for whether there are other people behind Gree making mobile phones, it is another big gossip. From Meizu, it is guessed that 360. Tiege believes that no matter which manufacturer Gree chooses to cooperate with, the final result is that Gree is responsible for the hardware, and the partner will build the ecosystem. Gree’s choice space is actually not large. When two companies with their own advantages cooperate to create a new brand, and the brand belongs to Gree, which is not the core hardware provider, it is destined that the cooperation between the two parties cannot be completely open and unreserved. This may also be an important reason why Gree has not yet announced its partners.

Fundamentally speaking, Gree's mobile phone business is a move to save Zhao from Wei in its brand strategy, but under the premise that there is no satisfactory solution to the above problems, Tie Ge is extremely pessimistic about the results of the action. The sales myth created by Dong Mingzhu at Gree is also difficult to replicate in the Gree mobile phone brand, and improper operation will also shake the foundation of Gree's air conditioning brand, which is the beginning of Gree's biggest nightmare.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.