2017 air conditioner production growth is so high? Color ice washing industry expressed dissatisfaction
Not long ago, the operator World Network released several industry reports as part of its 2018 TMT industry leader list, including the "2017 Home Appliance Industry Research Report" (hereinafter referred to as the report). The report highlighted a significant surge in the production growth of household air conditioners over the past year.
According to the data from the report, from January to November 2017, the output of household air conditioners reached 175 million units, representing a 19.9% increase compared to the same period in 2016. This impressive growth rate places air conditioners in a strong position when compared to other home appliances.
While the 20% growth in air conditioner output may not seem extremely high when viewed against the broader market, it is significantly better than the growth rates of other appliances like refrigerators (12.6%) and washing machines (3.1%). Even more striking is the contrast with the mere 0.8% growth in color TV production during the same period. This clearly shows that air conditioners were one of the standout performers in the home appliance sector in 2017.
Industry analysts suggest that three key factors contributed to this robust growth: inventory management, weather conditions, and the development of third- and fourth-tier markets. First, the inventory reduction in 2016 created room for increased replenishment in the air conditioning market. Second, the unusually hot weather throughout much of 2017 acted as a major driver for demand, boosting production. Third, the growing economic activity in smaller cities and towns provided a strong tailwind for air conditioner sales and manufacturing.
Overall, the air conditioning market showed strong momentum in 2017 from a production standpoint. However, while the surge in output is positive, it also raises concerns about potential stockpile buildup. Manufacturers must now focus on maintaining a balance between production and sales to avoid oversupply issues. As the market continues to evolve, strategic planning will be essential to sustain this upward trend without compromising long-term stability.
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