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“Gree” and “Aux” tear each other? China’s home building materials industry is so competitive?

July 11, 2019 - NEWS
“Gree” and “Aux” tear each other? China’s home building materials industry is so competitive?

As an air-conditioning giant, Gree has a revenue of 200 billion yuan a year; and the target of competition, Oaks, is the third in the air-conditioning industry.

At this time, Gree made a mistake to Oaks. The most common saying now is that the Oaks air conditioner is the main price/performance ratio. An air conditioner with a similar quality is nearly 1,000 yuan cheaper than Gree. On the channel of e-commerce, Aux Air Conditioning is ahead of Gree and Midea. And immediately to the middle of the year, the e-commerce promotion, and this time issued a public report letter, designed to affect the other party’s sales. Previously, Gree repeatedly released Oaks to dig his corner and repeatedly sued Oaks for patent infringement.

"Gree" and "Aux" tear each other? China's home building materials industry is so competitive?

Whether the outside speculation is correct, only the parties understand. However, this time Gree is clearly prepared, drying out the monitoring reports of professional monitoring agencies, responding to Oaks’ response in a timely manner, and convening a press conference to further elaborate on the energy efficiency of the Oaks air-conditioner, which is completely dead.

All said that the mall is like a battlefield, Gree faked Oaks added a new footnote. In the traditional home building materials industry, the competition among brands of various categories is also very fierce. Like Oaks, the relatively small popularity, scale, and influence often develop with price wars. After all, there are still more price-sensitive consumers.

However, in the home building materials industry, it is rare to openly compete like Gree and Oaks. First, the entire home building materials industry is relatively scattered, with many companies and brands. The brand concentration is not as high as that of air conditioners, and the degree of attention from the outside world is much lower. The outside world is not very concerned about the brands in the home industry. In addition to the head brands of various subcategories, the average consumer usually pays attention and does not know much.

However, the rivers and lakes in the home building materials industry are not simple. Unlike household appliances such as air conditioners, home building materials are more concerned with appearance, function, and environmental protection. There are few core patent disputes. Therefore, the disputes over home building materials mainly focus on trademarks, shapes and product quality. In addition, competition for sales channels is also a concern.

Because the daily building materials are not concerned about the daily life, in order to be able to identify them in the main purchase of the decoration industry, the fake brand name has become a major means of competition. “Pseudo-name cards” are divided into several types. One is the most well-known brands in each category of the cottage. It deceives consumers with fakes, such as various fake Nippon and fake Wrigleys, with similar names or similar patterns. It is the brand name of other categories, such as Marco Polo Sanitary Ware, Mona Lisa Sanitary Ware, Nobel Sanitary Ware, etc. In fact, these tiles are famous ceramic tile brands, and they do not produce sanitary wares themselves. Some small factories are unscrupulously marking this. Selling these products; there is also a way to see which brand is famous to follow up, there are icons in the market, there are more brands like x, saint x and so on.

Between the various brands of household building materials, unless there is no need, the dispute over the brand will not be very big. First, the cost of safeguarding rights is too high. Second, there is also the meaning of leveraging strength. In the event of a failed product inspection or counterfeiting, a statement was made stating that I did not manufacture such products. Of course, if you encounter direct fraud, many companies will still maintain their legitimate rights and interests, mostly through regulatory enforcement agencies.

"Gree" and "Aux" tear each other? China's home building materials industry is so competitive?

In addition to the brand name, there is a lot of disputes in the home building materials company. After all, as a traditional industry, the research and development of home building materials is more focused on the value and function. After many head companies withdraw from the market to a new product, they will immediately follow up. For such a situation, home building materials brands are often helpless, and there is no way to separate the counterfeiters by materials, processes and services. Subject to time, manpower, experience, etc., home building materials brands may not apply for appearance patents when pushing new products. Even if they apply for appearance patents, it is difficult for the counterfeiters to make some changes, and the cost of rights protection is too high. No more.

In fact, the competition of home building materials companies is more than price competition. The use of lower grade materials, a slightly rougher production process, lower grades of accessories, for many decoration owners, it is difficult to distinguish who is good and who is bad, brand and price become important evaluation factors. Home building materials companies are generally small in scale and traditional in technology, and are not subject to outside attention.

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