In recent years, Gree Electric Appliances, which has been committed to channel transformation, has been continuously strengthening its connections with various forces in the channel.
On September 27th, Gree Electric teamed up with JD.com to hold an autumn new product launch event. In addition to launching the AI energy-saving prince air conditioner, its full range fresh food refrigerator, Zhenrou washing machine and other products were also unveiled. During an interview with Huaxia Times on the same day, Lu Luqun, the sales director of Gree Electric Appliances, also stated that Gree has many core technologies applied in various categories, but in the early stage, it was afraid of the deep alley even though it was just a wine aroma. He hoped to send a signal to users through cooperation with JD.com, "Gree is not just a good air conditioner manufacturer, but also a 'good electrical appliance manufacturer'
Not only does Gree Electric continue to increase its external channels, but also around new growth points such as ice washing and kitchen appliances in the future. Gree Electric, which is known for its air conditioning business, has launched a series of internal organizational and personnel changes this year in order to find a balance between air conditioning and other businesses. On September 30th, Gree Electric Appliances was reported at 47.87 yuan, up more than 7%, reaching its highest stock price in 52 weeks.
Deepen channel connections
Including JD.com, Gree Electric is committed to getting closer to channel distributors.
One example is that Dong Mingzhu, the chairman of Gree Electric Appliances, who has a busy schedule, participated in relevant dealer conferences in Hebei, Henan, Anhui, and Jiangsu in August this year. Among them, she stated at the Henan Gree 2025 Marketing Summit on August 22 that the Gree channel reform has been basically implemented in all provinces across the country, but further improvement is needed.
New channels are also continuously expanding. According to the reporter's understanding, Gree Electric held an e-commerce distribution investment conference in mid July this year. Recently, it also held a kitchen appliance 2024 new product launch and investment conference in Zhengzhou, Henan.
Gree Electric has a huge dealer system. In this year's semi annual report, it was mentioned that the company will establish a dual line sales network covering the whole country based on 30 regions, over 30000 offline outlets, and official flagship stores of third-party e-commerce platforms, providing integrated services of offline experience, online ordering, nationwide unified delivery, and installation.
Among them, as an important online e-commerce platform for selling 3C home appliances, JD.com has a significant presence in the Gree Electric channel. The reporter learned from Gree Electric that Gree Electric established a cooperative relationship with JD.com in 2015, and over the past 10 years, Gree's overall product sales have grown rapidly, constantly breaking sales records. Gree Electric also mentioned in its semi annual report that it actively expands its platform channels, strengthens its network layout through full network and full platform entry, and has effectively covered the entire market.
The 10-year long run has also deepened the cooperation between Gree Electric Appliances and JD.com. Regarding the cooperation on September 27th, Zhang Jing, the person in charge of purchasing and sales of home appliances and air conditioners at JD.com, stated that this cooperation between Gree and JD.com is not only a simple business alliance, but also a deep integration of innovation and service between the two industry giants. In the future, both parties will further deepen cooperation and provide consumers with more personalized products and services through cutting-edge technologies such as big data analysis and intelligent logistics
Lu Luqun also stated in an interview with Huaxia Times on the same day that any platform has its own value, and JD.com has a huge procurement and sales system that can identify excellent products, which is very consistent with Gree's advocacy of doing a good job in product development. She also stated that the series of Gree air wash and household appliance products unveiled on that day are important achievements of Gree's core development strategy of "good appliances made by Gree". "Gree will deeply cooperate with JD.com, constantly explore, and strive to provide consumers with a more convenient and reassuring consumption experience
Ice washing is the future growth point
Not only has Gree Electric reformed its distribution channels, but it has also undergone a series of changes this year.
In May of this year, Gree Electric announced the establishment of a Home Appliance Business Department, which merged the functions and personnel of the Home Air Conditioning and Small Appliance Business Department, the Ice Washing and Life Appliance Business Department, and appointed Lu Luqun as the Sales Director, in charge of the Home Appliance Business Department, with a probationary period of six months to one year.
In addition, the intention to establish separate ice washing sales companies in each province is also one of the major changes for Gree Electric this year. According to the reporter's understanding, Gree Electric Appliances was the first to establish an ice washing sales company in Henan in May this year, and Lu Luqun also made an official appearance. Later, Gree Electric Appliances established an ice washing sales company in Hebei. Many industry insiders believe that Gree Electric's establishment of an ice wash sales company aims to increase market share and brand influence of non air conditioning products such as refrigerators and washing machines through independent channel operations.
According to Gree Electric's semi annual report, the company achieved a revenue of nearly 99.8 billion yuan in the first half of this year, a year-on-year increase of 0.55%, and a net profit attributable to the parent company of 14.136 billion yuan, a year-on-year increase of 11.54%. Among them, the air conditioning business revenue was nearly 78 billion yuan, a year-on-year increase of 11.38%, accounting for 78.14% of the total revenue, with a gross profit margin of 34.81%, a slight decrease of 0.88% year-on-year. During the same period, household appliances accounted for only 2.41% of Gree Electric's revenue, but the year-on-year growth was also close to 11%.
Regarding the importance of the ice washing business, Dong Mingzhu once stated at the 2023 annual shareholders' meeting of Gree Electric on June 28 that Gree Electric's air conditioning business is home oriented and aims to achieve the best, with growth points in refrigerators and washing machines. Lu Luqun also introduced that starting this year, Gree Electric will gradually establish ice washing sales companies in various provinces and regions to undertake the construction of local positions and market maintenance.
Regarding the progress of the layout of ice washing sales companies in various provinces, Lu Luqun stated in an interview with Huaxia Times on September 27th that Gree Electric's entire channel reform is not only aimed at ice washing, but also starts from the idea of how to make the entire channel more efficient, how to enable dealer partners to cooperate in a clearer, faster and higher turnover situation, while also providing better service to consumers.
She also told reporters that the ice washing meeting was held against the backdrop of Gree's platform reform, with the aim of making Gree's product line more comprehensive and system more complete, so that every consumer can receive more complete sets of products at Gree. "Actually, I don't think we need to interpret the opening of an ice washing company too much, because its essence is to send a signal to society: Gree is a 'good electrical appliance made by Gree'