As the most representative category in the development of the home appliance industry, in the development of China's air conditioning industry for decades, the brand has changed several times, ups and downs are common, but there are also enterprises that can go through the cycle to achieve steady and long-term development, analysis of these samples, may be able to give inspiration to the present, in the face of a highly competitive and uncertain market environment, what kind of competitive barriers should enterprises build in order to truly achieve long-term development and value growth?

On September 2, Oaks Electric Co., Ltd. was listed on the main board of the Hong Kong Stock Exchange, and recently, Oaks Air Conditioning was also certified by Sullivan as "the top three global household split air conditioner sales in the past 7 years from 2018 to 2024".

Compared with the high-profile exposure of Midea, Gree and even the new brand Xiaomi air conditioner, the volume of Oaks air conditioners always seems to be slightly low-key. However, if you carefully comb through its 31-year development trajectory, you will find that the company has not only never fallen behind in the industry torrent, but has continued to draw a steady and eye-catching growth curve. When the public's attention is attracted by the hustle and bustle of the market and the war of words, turning our attention to Oaks' growth logic may better reveal the true core of the long-term competition in the air conditioning industry.

Picture: Oaks was certified by Sullivan: "Oaks 2018-2024 Cumulative 7 Years Global Top 3 Household Split Air Conditioner Sales

China's air conditioning industry has entered a stage of deep competition, and technology breakthrough has become a consensus, but the key to innovation is not the accumulation of technology, but how to transform technology into user-perceived value and systematically build sustainable differentiated advantages.

In this context, a set of market data is eye-catching, according to Sullivan data, the Oaks air conditioning Aozhiyin series has won the "first place in global sales of intelligent voice air conditioners" for two consecutive years.

Under the prevalence of the "lazy economy", users crave the ultimate convenience, and intelligent voice interaction is gradually becoming a favored control method. However, the intelligent voice track "participants", why can Oaks intelligent voice air conditioners continue to lead the market? Taking the Aozhiyin II  Pro set as an example, this air conditioner equipped with Baidu large model and connected to DeepSeek is unique in its leapfrog upgrade from "passive response" to "active service", recognizing 8 dialects, with a recognition accuracy of up to 97%, and offline interaction..... From these details, it can be seen that how to transform the convenience of intelligent voice into perceptible value and create truly practical excellent functions is the fundamental reason why this series of products can continue to be on the list.

The above products are just a microcosm of Oaks air conditioning technology innovation, focusing on the needs of health, comfort, energy saving, etc., Oaks products continue to accurately cut into user pain points and achieve experience upgrades. Combing through these innovations, the corporate values of "quality is the foundation, innovation is the soul" is the fundamental driving force behind all these innovations. Driven by the underlying logic of "quality" and "innovation", Oaks adheres to the independent research and development and innovation of core technologies, taking the core component compressor of air conditioning as an example, through cooperation with Panasonic, Oaks has become the third enterprise in the industry to master the core compressor technology, these breakthroughs are the strength foundation and confidence of Oaks to dare to say "quality" and "innovation".

Oak adheres to the concept of "inclusive technology" and systematically improves the quality bottom line of the whole line of products. A little-mentioned but important fact is that Oaks is the first company in the industry to use "self-cleaning" technology as standard equipment in the whole series, which breaks the industry's practice of treating health functions as a premium bargaining chip and conveys the clear proposition that "health should not be hierarchical". In terms of intelligent voice function, by introducing a powerful dialect recognition function, users in different regions and different consumption levels can equally enjoy the convenience brought by intelligent technology, lowering the threshold for using this technology.

In addition to technology, services have also become a key "variable" to measure core competitiveness. The "10-year repair + annual free cleaning and maintenance" service launched by Oaks covers the whole cycle of air conditioners from purchase to scrapping. Domestic users can make an appointment for free cleaning every year, and the damage caused by the product within 10 years can be repaired for free, and the user satisfaction rate is more than 98%. This kind of service experience that "exceeds user expectations" will be a core barrier that is difficult to replicate and very valuable in future market competition.

In the competition of many masters, the victory or defeat is often only between the first line, and the competition between top enterprises is no longer a single technology or scale competition, but the ultimate test of systematic ability and strategic endurance. The same is true for the air conditioning industry, only by striving for excellence and continuous polishing in every link of quality and service can we accumulate decisive victory in seemingly small advantages.

The competition in the air conditioning industry is not only in the technical track of the laboratory, but also in the "channel value chain". From the traditional large agency system to chain stores, and then to the rise of e-commerce, channel iteration not only profoundly reshapes the competitive landscape of the industry, but also the core test of whether enterprises can cross the cycle.

Oaks' sense of smell sensitivity to channel change is absolutely "one of the best" in the industry, the earliest to cooperate with Gome and Suning, and after the rise of e-commerce, it is also the first batch of "crab-eating" brands, until the birth of "Xiao Ao Direct Sales", through Internet direct sales to improve channel efficiency and remove redundant costs, through this ecosystem, consumers can enjoy better products and prices, and channel providers can get more fair , transparency, high-quality empowerment and service.

At the Oaks Global Customer Summit just held, many dealers took the initiative to seek cooperation with the Oaks brand, which is naturally a foreseeable sustainable and healthy growth space attraction.

Analyzing Oaks' channel philosophy, it can be found that its "appeal" lies in the establishment of a more reasonable value chain distribution mechanism, integrating employees, users, distributors, suppliers and the brand itself, building a value community of shared joys and sorrows and shared benefits, and ultimately driving the continuous operation of the business flywheel.

This flywheel continues to run, forming a systematic competitive advantage that is difficult for Oaks to replicate, and also enables it to not only successfully pass through the cycle, but also achieve continuous growth in the previous changes in the channel. From "trading game" to "ecological symbiosis", the future competition in the air conditioning industry is destined to belong to those enterprises that can take the lead in breaking corporate boundaries, reconstructing industrial roles, and working together to build value.

According to industry online data, from 130 million units in the cold year of 2014 to 210 million units in the cold year of 2024, the global household air conditioner has maintained a compound annual growth rate of 4.7%. At present, the penetration rate of some emerging markets is still low, and air conditioning in many regions around the world will still be in a long cycle of growth in the future.

Sullivan data predicts that the global air conditioning market is expected to maintain steady growth, driven by replacement demand in developed countries and China, as well as new demand in emerging markets. Global air conditioning sales are expected to reach 293.3 million units in 2028, with a CAGR of 2.9% from 2024 to 2028.

Overseas markets have become a battleground for all enterprises, and Oaks has taken the lead in gaining a firm foothold in overseas markets with its forward-looking layout and solid expansion.

According to the data disclosed in the Oaks prospectus, Oaks' overseas business has covered more than 150 countries and regions such as North America, Europe, South America, Southeast Asia, and the Middle East, and maintains a high market share in Brazil, Mexico, the United Arab Emirates, Saudi Arabia, Vietnam, Uzbekistan and other countries. In the first quarter of 2025, Oaks Electric achieved overseas sales of 5.336 billion yuan, accounting for 57.1% of the company's total revenue in the same period, contributing half of the overall revenue.

Going overseas is not an easy task, especially in the current context of global trade uncertainty, Oaks' success in overseas markets has analytical value.

To sum up, Oaks overseas can be summarized into two core strategies, the first is the regional product strategy, for the differentiated needs of different markets to drive R&D and product innovation, for example, for the high temperature and high humidity environment of Southeast Asia, Oaks launched double wind turbine moisture exhaust air conditioners, and achieved the first sales volume of inverter air conditioners in the Malaysian market. This not only reflects its values of "quality and innovation", but also benefits from its industrial bases and R&D centers around the world, which provide solid support for rapid technology implementation and product localization.

The second is to build an efficient localized service system, which has gnawed away the "hard bones of service" that are difficult for many enterprises to solve. Oaks has gradually built its own after-sales service system overseas, and successfully replicated the "Xiao Ao direct sales" model to many markets around the world, achieving a rapid response to user needs. For example, in Southeast Asia, users can usually get door-to-door service within 24-48 hours after applying for repairs, which greatly enhances brand trust and market reputation, and has become a key element of its overseas "fame".

As an important new growth pole for air conditioning companies in the future, overseas markets are destined to be clever, and Oaks has made a good demonstration, which does not rely on low-price dumping or large-scale crushing, but realizes high-quality expansion of overseas markets through a set of precise, systematic and sustainable "refined operation" strategies.

The essence of future competition has shifted from product disputes to ecological disputes. As an industrial giant with a revenue of 100 billion yuan, Oaks has not only achieved the top three global household split air conditioner sales for 7 years, but also covers electricity, distribution, new energy and medical care and other fields.

Focusing on the core of "air, energy and health", Oaks has the systematic ability to open up industrial boundaries and build a collaborative ecology, especially after the successful IPO, Oaks will accelerate the layout of the whole industry chain, R&D innovation and global expansion, integrate technology, data and service resources through the two-wheel drive of capital and innovation, continue to strengthen cross-industry collaboration capabilities, and move towards a new stage of high-quality growth.

What can support enterprises to grow through cycles is never a temporary outlet or marketing voice, but inherent value determination and systematic ecological competitiveness. Oaks' practice proves that the real "barrier" stems from the unshakable concept of "quality is the foundation, innovation is the soul"; It stems from the persistence of transforming technology into user-tangible value; It comes from the goodwill and wisdom of creating a win-win situation with employees, distributors and suppliers; It also stems from the vision and patience of "cleverly" the global market with refined operations.

Standing at a new starting point, Oaks is sailing towards a new blue ocean belonging to long-termists with a calm and firm pace.