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Gree, which is undergoing channel reform, seems to have a growing contradiction with traditional offline distributors.

On August 23rd, it was reported by Cailian that Gree Electric had recently stopped supplying Hebei distributors, and this news has been confirmed by many Gree distributors. In this regard, the relevant person in charge of Gree Electric responded that we are learning about the media report that Gree Electric stopped supplying Hebei dealers.

It is reported that this matter may be related to the recent public speech by Xu Zifa, the chairman of Hebei Gree distributor. Xu Zifa said in a recent public event, "Don’t do Gree, turn to Philips." In addition, CBN quoted people familiar with the matter as saying that Gree Electric had stopped supplying Hebei agents for two months.

Source: screenshot of the webpage

The topic of "Gree Electric stops supplying Hebei dealers" also quickly reached the hot search list of major social platforms, which triggered a hot discussion among netizens. Perhaps the reason behind the hot discussion is that Xu Zifa, the party involved in this "betrayal", has been a core distributor of Gree for many years, and also joined the board of directors of Gree Electric from 2015 to 2017. According to the interface news report, some insiders called him an important "clique" of Dong Mingzhu.

Perhaps the outside world pays more attention to the defection of "clique". I wonder what adverse effects this will bring to Gree, which is already in a decline in performance and poor market performance.

The sorrow of channel reform

Gree’s channel model has undergone two changes. One is to prevent a series of behaviors such as malicious price reduction and goods smuggling from adversely affecting the price system of Gree air-conditioning. In 1997, Gree began to implement channel reform, transforming the previous regional multi-agent model into a joint-stock regional sales company.

Under this mode, Gree has established an offline distribution system of professional agency mode, leading the whole industry by relying on the trinity system composed of headquarters, branches and dealers, which not only unifies the price, management and service, but also enables dealers to enjoy profit sharing. At the end of 1997, after the establishment of Gree’s first joint-stock sales company in Hubei, this model was quickly pushed to the whole country, which led Gree’s turnover to climb year after year. In 2015, the market share of Gree air conditioners reached a peak of 46.3%.

However, the continuous development of online channels in the past two years and the impact of the COVID-19 epidemic have dealt a big blow to the offline channel model that Gree has always relied on. Beginning in 2019, Gree began to actively promote new retail changes, reduce channel levels, change Gree’s offline distribution system, and develop online formats.

In May of this year, at Gree’s performance briefing, Dong Mingzhu once said that Gree’s original channel model was established after she returned to the company. "It has hardly changed since 1997," but she also said that the background at that time was completely different from now. "With the advent of the Internet era, the channel marketing model is facing challenges from offline to online."

Dong Mingzhu’s live broadcast in May 2020, there are many channels in the live broadcast room.

In order to actively promote the channel reform, Dong Mingzhu personally went off the stage to broadcast the goods. According to the data, there are 13 live broadcasts in Dong Mingzhu in 2020, with sales of 47.62 billion yuan, accounting for 27.93% of Gree’s revenue that year. However, according to "Aotou Finance", this figure is not paid by consumers, but the bottom dealers "buy goods" from the live broadcast room, and the sales of the live broadcast room in Dong Mingzhu depend on the support of dealers.

Source: Tik Tok @ Hangzhou Daily screenshot

In the past two years, Dong Mingzhu’s live broadcast has quite a tendency of "fishing for three days and drying the net for two days", and even it was reported that she left the scene immediately because of the mistake of the live broadcast assistant during a live broadcast.

In addition to live delivery, Gree Electric takes the WeChat applet online mall of Gree Dong Mingzhu Store as the core, which enables Gree retailers everywhere to combine online and offline, and retailers can place orders directly online. This change has strengthened the control of Gree headquarters, which can lower the price, but it also narrows the profit margin of channel providers.

Channel reform makes Gree no longer rely on offline channel providers, and it is only a matter of time before it "breaks up" with channel providers. But the most important thing is that the channel reform has not achieved remarkable results. Dong Mingzhu once said frankly, "In 2021, the company’s sales did not meet expectations, and channel reform was one of the influencing factors."

The loss of market share and the evaporation of market value exceeded 200 billion.

Not only is the contradiction with offline dealers increasing, but Gree’s air-conditioning business in base camp has also been difficult to hide in recent years. In the first quarter of 2020, Midea’s air-conditioning business surpassed Gree in market share for the first time. By the end of 2020, Midea’s air-conditioning business revenue was 121.215 billion yuan, and Gree was 117.882 billion yuan. By the end of 2021, Midea’s air-conditioning business income was 141.8 billion yuan, and Gree’s air-conditioning business income was 131.713 billion yuan, and the gap has expanded to 10 billion yuan.

Source: Gree official website screenshot

It is worth noting that Midea’s air-conditioning business only accounts for more than 40% of its total business, while Gree’s air-conditioning business accounts for 70.11% of its total business in 2021. This also means that the impact of air conditioning business on Gree itself is bound to be greater than that of other home appliance enterprises on the market.

Entering this summer, many places are plagued by high temperature and drought. As of mid-July, the number of weather stations that broke the high temperature record in China increased from 28 last year to 71. Among the 368 cities in China, the highest temperature in 77 cities exceeded 40℃ this summer. The high temperature has also led to a sharp increase in the demand for air conditioners.

However, according to Aowei Cloud, as of the 31st week in the third quarter of this year, online sales of Gree air conditioners only increased by 9%. At the same time, Haier’s air-conditioning online sales rose by 41%, and Midea’s air-conditioning rose by 29%. It can be seen that Gree’s air-conditioning business is no longer strong.

Gree’s performance in the secondary market is also unsatisfactory. As of 14: 00 on August 24th, the market value of Gree Electric was 169.6 billion yuan, which has evaporated by more than 200 billion yuan compared with its peak period. Not only that, Midea’s market value of 360 billion yuan is twice as high as Gree’s, and Haier is nearly 60 billion yuan higher than Gree with a market value of 229.2 billion yuan.

The struggle between Gree and offline distributors is only the tip of the iceberg of the difficulties faced by this old household appliance enterprise. The loss of air-conditioning market share and the continuous decline of market value are the problems that Gree urgently needs to solve.

Recently, Xiao Fan, a Guizhou golden monkey from Guizhou Golden Monkey Research Center in Fanjingshan National Nature Reserve, gave birth to another cub, which is now growing well.

Since 2018, Xiaowan and Xiaotian have successfully bred four babies of Guizhou golden monkey, Dabao Jianjian is 6 years old, Erbao Kangkang is 4 years old and Sambo Qianbao is 2 years old. The females of Guizhou golden monkey in the wild usually have one baby every three years. After years of scientific research, the females of Guizhou golden monkey research center in Fanjing Mountain have achieved one baby every two years, which makes the scientific research of Guizhou golden monkey go to a new level.

Guizhou golden monkey is only distributed in Fanjingshan National Nature Reserve, Guizhou Province. It is a national first-class protected wild animal, and is known as the "only child of the earth". It is one of the only two key protected and managed species in Guizhou Province in National Forestry and Grassland Administration’s List of Key Species Protection and Management Tasks, and the other is Abies fargesii. (He Li)

　　China Daily Online, November 23rd, 22nd, Gorgo Davalika Omaliyevna, director of the special department of Russian newspaper, said in a connection speech at the 2021 China-Russia online media forum that the friendly relations between China and Russia will help to create cooperation projects and make Russian consumers understand China’s culture, economy and technology.

　　On the 22nd, Gorgo Davalika O ‘Mariyevna, director of the special department of Russian newspaper, connected to participate in the 2021 China-Russia online media forum.

　　O ‘Mariyevna said that Russian audiences pay extensive attention to the news about China, and China’s artificial intelligence, investment, e-commerce and other fields are important contents. As a local Russian media brand, Russian newspaper has rich experience in cooperation with China media. With the development of the website, the digitalization of the newspaper has been continuously improved, and it will actively expand in three aspects: network special programs, social network platforms and video content in the future.

　　When introducing special programs, O ‘Mariyevna mentioned that the number of special programs produced by Russian newspaper is increasing year by year, and Russia-China: Events and Quick Review is one of the excellent programs. The program has been launched for three years, and its form is a publication type. The program publishes events in China every day. In the past three years, the total number of news releases has reached more than 3,000. This program is deeply loved by China people living in Russia and Russian audiences.

　　O ‘Mariyevna also mentioned that during the epidemic, the staff of China Media Company provided anti-epidemic films and other film and television resources to Russian newspaper, which was incredible under such difficult circumstances.

　　"I remember we were very scared at the peak of the Russian epidemic, when the first wave of anti-epidemic work in China was over. China’s anti-epidemic experience played a key role in Russian epidemic prevention work at that time. " She said.

　　In 2021, the China-Russia Online Media Forum was held by video link on November 22nd, with separate venues in Beijing and Moscow, with the theme of "promoting exchanges and mutual learning and deepening pragmatic cooperation". The forum is directed by the National Internet Information Office of China and the Ministry of Digital Development, Communication and Mass Media of the Russian Federation, sponsored by China Daily and China Internet Development Foundation, hosted by China Daily and co-organized by Netease News.

On July 21, local time, US President Biden announced that he had decided to withdraw from the presidential election and would focus on fulfilling his presidential duties during his term of office.

CNN reported that this is the first time since 1968 that a current president in the United States has withdrawn from the re-election campaign.

The result of this "making history" is not surprising — — After the first candidate’s TV debate in the 2024 presidential election in the United States nearly a month ago, the discussion about whether Biden’s physical condition can support him to continue to participate in the election has never stopped.

In fact, the American people do not want to see the picture of current President Biden and former President Trump "competing on the same stage" again.

A recent poll data showed that 56% of the respondents did not support Trump’s election, 70% of the respondents did not want Biden to seek re-election, and many even questioned whether the current American political system served ordinary Americans.

Biden VS Trump, Americans feel that they are losers. Now, will this situation change?

From the first round of TV debates, the disappointment of Americans began to intensify.

In the American media’s own words, the debate was more about personal attacks than policy statements, and mutual abuse ran through the whole night.

Then, there was a constant voice from within the Democratic Party asking Biden to withdraw from the election, and the Republican Party also took the opportunity to spoil the situation.

This farce lasted for nearly a month.

Liu Weidong, a researcher at the American Institute of China Academy of Social Sciences, told Tan Zhu that on the surface, the biggest resistance to the Democratic Party’s substitution came from Biden himself and his team, but the serious opposition within the Democratic Party on this issue was the real reason for the delay in the substitution.

In the past, Biden himself insisted on not withdrawing from the election because "he is the only person who has defeated Trump at present".

But as long as we look back on the 2020 general election, we can find that Biden is actually just an option after compromise for the Democratic Party.

There are different factions within the Democratic Party. Diao Daming, deputy director of the Center for American Studies at Renmin University of China, described Biden’s characteristics as a long-term elite and relatively moderate stance, which made him more acceptable to different factions.

In the eyes of the top leaders of the Democratic Party at that time, Biden was the person who could best integrate the resources within the party and had the best chance to defeat Trump in the general election that year, so they would support Biden.

Now, the top of the Democratic Party thinks that Biden can’t beat Trump, so it is imperative to change people.

But how significant is Biden’s withdrawal to the Democratic Party?

At present, the National Congress of the Democratic Party has not yet been held. According to the relevant agenda, Democrats who are interested in competing for the new presidential candidate can take the initiative to express their willingness to stand for election in the next period of time, and then vote at the open party congress. The person with the most votes can be among the presidential candidates.

However, Ocasio Cortes, a well-known representative of the Democratic Party, revealed that there is still no decision on the candidate to replace Biden within the Democratic Party.

In the past few years since Biden’s administration came to power, there have been contradictions in legislation and policy making within the Democratic Party. There are more and more contradictions, Biden’s "bonding" role is getting weaker and weaker, and other candidates who can unify the differences within the Democratic Party have not stood out.

When differences between political parties become the norm in American politics, the interests of political parties will override the interests of the American people.

What the American people really care about will be selectively ignored.

In the statement of withdrawing from the election, Biden made it clear that he would fully support the current Vice President Harris to win the presidential nomination.

He also called on Democrats to unite and defeat Trump. In this regard, Trump responded for the first time that Harris is more easily defeated than Biden.

It can be seen that the two parties are fighting over how to belittle each other.

For the American people, what they want to see is the ability of the two parties to compete and solve problems.

At the beginning of this year, The Hill released a poll. The data shows that in this election year, Americans are most concerned about the border and immigration issues, followed by the economy and inflation.

When considering and solving problems, it is not enough to just observe a political figure or party, but to go deep into the texture of American political operation.

Take immigration as an example, the two parties should introduce a bill in Congress to solve this problem.

However, after three months of wrangling back and forth, the Democratic and Republican parties came up with a "package" bill that simultaneously strengthened border security and spent $60 billion to support Ukraine.

The reason why "packaging" occurs is that under the background of infighting, the best choice is to "package" the bill that one wants to pass into the other’s bill, so that both can be passed at the same time. If it cannot be "packaged", even if Congress is paralyzed, the two parties will not seek compromise.

On December 30 last year, an article entitled "The Root Cause of Congressional Dysfunction" was published on the website of "Politicians" who were biased towards the Democratic Party, which pointed out that the US Congress had fallen into a state of dysfunction.

From this perspective, the interests of the American people, whether Democrats or Republicans, are completely unimportant in their eyes.

For the American people, what they consider is not which one will be better, but which one will be worse and which one will do something with no bottom line. The so-called vote is "the lesser of the two evils."

When a country’s political parties can only compete on the bottom line, then who will be the ultimate loser?