Why is Xiaomi air conditioner cheaper than Gree? Why is Xiaomi air conditioner cheaper?

Why is Xiaomi air conditioner so cheap? Generally, counter units from Gree and Midea cost several thousand, nearly 10,000 yuan, while Xiaomi only costs about 3,000 yuan, not to mention wall mounted units. They are both brand air conditioners, but Xiaomi air conditioners are more beautiful and cost-effective. Why is Xiaomi air conditioner so cheap? Let's take a look at the introduction provided in this article!

Why is Xiaomi air conditioner cheaper than Gree?

Gree's reputation is that Gree has mastered core technology. Although Gree has many patents, I think that the real reason why Gree has become a high-priced air conditioner in the domestic market is largely due to Dong Mingzhu's marketing methods. In other words, it is Dong Mingzhu's marketing methods that have improved Gree's style and increased Gree's price!

Why is Xiaomi so cheap? Is it because it lacks core technology? Or is it because of low marketing costs? Let's answer this question together.

Regarding technology. You have to know that even though some of Gree's high-end compressors are purchased from Japan, we cannot deny Gree's technological advantages, but we can also know from this that air conditioners are actually imported products with some foreign technology. However, when we use Xiaomi ourselves, we can feel that Xiaomi has low noise and fast cooling, which has met our requirements. For consumers, this is the first advantage.

Advertising expenses. It is rare to see advertisements for Xiaomi air conditioners. The reason is simple: as a product of the ecological chain, Xiaomi air conditioners are more likely to be promoted through the influence of Xiaomi Corporation.

Channel fees. Most of Gree's expenses are spent on channel fees, and most of the profits are shared by channel dealers. Xiaomi is different. It has omitted the channel dealer link, and even if it is purchased, it is only purchased on the official website. Without channel dealers, Xiaomi's prices can be compressed.

There is another important factor. Xiaomi wants to build a smart home, and air conditioners have become an important part of it. It wants to accommodate every Xiaomi appliance in it, thus forming a closed loop of Xiaomi smart home. This is a strategy. Therefore, not only are air conditioners low in price, but many products are also not expensive.

Why Xiaomi air conditioners are cheap

1. Xiaomi mobile phone user base is very large, covering half of China, and everyone's response is good. Therefore, for those Xiaomi fans, there is no need to advertise other Xiaomi products. They just buy them directly. This not only saves a large part of the promotion costs, but also forms a shopping chain, allowing those loyal fans to continue to buy other products of this brand. Xiaomi not only has mobile phones, but also computers, balance bikes, TVs, air conditioners, ballpoint pens...

2. We probably have never seen a Xiaomi air conditioner store on the street, right? Here, the dealer fees are saved, so Xiaomi's air conditioners are directly sold, that is, the manufacturer directly delivers the goods to consumers, eliminating the middleman to earn the difference.

3. Xiaomi's air conditioners are not very well-known yet, so in the early stages of market preparation, it is necessary to open up the market with small profits but quick turnover in exchange for users' ideal experience of the product and build word-of-mouth.

4. Xiaomi itself does not produce air conditioners. Except for the appearance design, other technologies must be processed by third-party manufacturers. Therefore, in terms of technology and materials, it may not be as good as those more specialized air conditioner manufacturers. For example, compared with Gree air conditioners, it is definitely not good.

5. Xiaomi’s general direction is not to make money in the early stage, but to open up the entire product ecosystem so that consumers can make full use of all Xiaomi’s smart homes.

Who manufactures Xiaomi air conditioners?

Changhong

Lei chose Changhong because of its strong strength in air conditioning technology and manufacturing. It is reported that after acquiring Meiling, Changhong has a technical R&D team of more than 2,000 people and many patented technologies, such as 0.1 degree fine sensing technology and silent air duct technology. Xiaomi's air conditioner found Changhong to be the OEM, which at least guarantees that the technology is leading and the quality is guaranteed.

It can be said that this time Lei Jun brought "the first air conditioner for young people" to Mi fans, which is expected to have an impact on Gree in terms of cost performance. However, Gree mobile phones cannot pose a threat to Xiaomi mobile phones. Perhaps Dong can consider launching some power banks to grab Xiaomi's business.