Retailing, Franchising, and Consumerism Business Intelligence in China

Suning Releases Chinese Air Conditioner White Book

Chinese electronics retailer Suning has released the "China Air Conditioner Industry White Book 2008" in which the company estimates that the total sale of China's air conditioner market will reach 75 million, of which 34 million will be from domestic companies.

Suning says that environmental protection and energy-saving has become a main consumption trend of China's air-conditioner industry in 2008.

Gu Wei, general manager of Suning Chengdu, says though the price of the raw materials of air conditioners has increased, this won't immediately affect the market price of air conditioners due to the production cycle. Gu says that Suning will restrict the price markup within the air conditioner industry through scaled purchasing, warehousing and obtaining exclusive selling rights from manufacturers. The company has already purchased one million air conditioners since the Chinese Spring Festival, and 30% of those will be sold by Suning exclusively. Suning promises that it will not join the price war of the air conditioner market at least before the May Day holiday.

Statistics from the State Information Center show that the price of air conditioners increased by about 20% in the summer of 2006, by around 10% in the summer of 2007, and the entire industry saw a price rise of about 5% after this year's Spring Festival.

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