By Jin Lu

In a competitive air conditioning market that has progressed beyond its initial growth phase, capturing additional market share poses a significant challenge, particularly as overall industry expansion appears limited. However, as demand slows, it serves to underscore a company's resilience. Ningbo's AUX Air Conditioning has emerged as a benchmark for growth in the face of adversity. What strategies did AUX implement to achieve this success?

Standing Out with Exceptional Products

In a buyer's market, product excellence is crucial for differentiation. AUX's strategy of prioritizing product innovation and enhancing consumer experience has been pivotal in overcoming industry homogenization. In 2023, AUX unveiled two notable products: the Enjoy Wind II, designed to offer gentle breeze comfort, and the AUX Know II, which boasts advanced smart features.

The Enjoy Wind II is equipped with dual-axis guide vanes and a micro-perforated panel with 8,654 micro-holes, enabling it to distribute airflow across a broader area for a gentler and more comfortable breeze. Additionally, it boasts a cooling capacity three times greater than its predecessor.

The AUX Know II boasts a second-generation voice assistant, offering dual-core smart control that can work even without an internet connection. It responds to voice commands from up to 5 meters away and supports various control methods, including mobile app, NFC, Bluetooth, and infrared, catering to all-around smart control needs.

AUX's product quality has garnered significant industry recognition. At the 2023-2024 China Air Conditioning Industry Summit Forum, the Enjoy Wind II received the "Comfort and Health Benchmark Product" award. The AUX Know II won the 2023 Red Top Award of the China Household Appliances Association for its advanced voice control technology and industrial design. Additionally, the AUX Know series was certified by global consulting firm Frost & Sullivan as the world's best-selling smart voice air conditioner in 2022.

Leading Smart Manufacturing with Stronger Partnerships

Since the beginning of the year, a number of new air conditioning manufacturing facilities have emerged in China's appliance manufacturing hubs. On February 19, the first phase of the Yuetu Air Conditioning manufacturing base in Ma'anshan, Anhui, officially commenced operations. This was followed by the start of production on March 6 at the Lejn Air Conditioning Intelligent Manufacturing Base in Anqing, Anhui. On April 8, construction began on a compressor production facility in Zhengzhou, Henan, a joint venture between Haier and Shanghai Highly. Additionally, a collaborative project between AUX and Panasonic is set to establish a facility capable of producing 30 million air conditioning compressors annually, along with a research and development center, in Wuhu, Anhui.

On November 2, AUX and Panasonic Wanbao Appliances Compressor (Guangzhou) Co., Ltd. signed a crucial cooperation agreement, marking a significant step in AUX's effort to expand its influence across the industrial ecosystem. This collaboration creates synergies between AC design and component development, shortening the R&D timeline and enhancing market competitiveness. The 30-million-unit compressor production facility in Wuhu will solidify AUX's strategic layout in East China and strengthen its leading position in the smart home appliance field.

Strong partnerships throughout the supply chain are essential to the competitiveness of air conditioning companies. AUX's recent manufacturing upgrades reflect its strategy to expand its operations, ensure supply chain stability, and facilitate sustainable growth.

Resonating with Gen Z to Elevate Brand Appeal

Connecting with younger consumers is a key marketing strategy for home appliance companies, and AUX has successfully positioned itself to engage with Generation Z. In 2023, AUX hosted numerous outreach events—including music festivals, pop-up stores, and interactive challenges—designed to resonate with young audiences while showcasing its latest products.

In early 2024, AUX tapped into the popularity of rap artist Dong Baoshi, attracting over 100,000 viewers to a livestream event promoting its products. On March 13, the company collaborated with the popular band Mr. Chelonian for an online music festival, launching a consumer engagement initiative aimed at demonstrating how well its air conditioners recognize voice commands in various Chinese dialects and accents. The related Douyin hashtag achieved over 90 million views. On May 7, AUX partnered with singer Tan Weiwei to kick off a sales campaign on Tmall. Through campus music festivals, celebrity live broadcasts, and other events, AUX has effectively enhanced its appeal to young consumers, highlighting features of Enjoy Wind II and AUX Know II.

Looking ahead, the domestic air conditioning market is not expected to experience a significant surge in demand that would lead to increased sales. The expansion of production capacity among many manufacturers intensifies competition, likely resulting in another round of industry reshuffling. However, with vigilant market observation and robust product innovation capabilities, AUX Air Conditioning is well-positioned to navigate these challenges. By proactively enhancing its products, manufacturing processes, and marketing strategies, AUX aims to solidify its industry-leading position while fostering high-quality development throughout the sector.