Price wars erupted in the air conditioner industry in 2014 when key players slashed tag figures to reduce inventories and boost sales. But this squeezed their profits.
But Guangdong Chigo Air Conditioning Co Ltd was among those that took a different route to long-term success. It focused on product quality. It introduced smart solutions and advanced technologies.
China Market Monitor Co Ltd said overall sales of air conditioners in the JanuaryMarch period fell 13.13 percent year-on-year. But Chigo, which was founded in 1994, reported a year-on-year sales growth of 17.16 percent.
Future-minded manufacturers are betting on intelligent appliances. Innovation in this context does not justmean manufacturing products like air conditioners that can be
remotely controlled using smartphones, said industry experts.
An intelligent air conditioner would be able to scan a human body with its infrared sensors and determine body temperature relative to ambience, and cool or heat the room accordingly, he said.
In 2014, Chigo started transforming its strategy for high-end products and launched intelligent cloudbased air conditioners. The strategy made use of the cloud computing technology to manage and upgrade air conditioners.
Li Xinghao, founder and CEO of Chigo, said the company will deepen production reforms and continue to propel its high-end air conditioner business this year in a bid to boost growth amid slowing sales. He said the company is targeting 100 billion yuan in sales by 2020.