Core Insights - The unprecedented high temperatures in Northeast China have led to a significant surge in air conditioning sales, with record-breaking growth rates in sales and installations reported by major brands [1][3][5] - The current demand spike highlights a mismatch between supply capabilities and sudden market needs, revealing vulnerabilities in the local air conditioning supply chain [6][11][12] Group 1: Market Performance - Air conditioning sales in Heilongjiang and Jilin provinces saw year-on-year growth rates of 817.68% and 438% respectively during late June [1] - Haier reported retail sales growth of 333%, 355%, and 518% in the three northeastern provinces, with total installations reaching 410,000 units, a 238% increase [3] - Midea's air conditioning installations in Heilongjiang and Jilin increased by 356%, with a peak installation day reaching 245,000 units, setting a historical record for the company [3] Group 2: Supply Chain Challenges - The Northeast region has historically low air conditioning production capacity, with only Liaoning producing approximately 527,700 units annually, while Heilongjiang and Jilin have no production capacity [9][10] - The sudden demand surge has led to supply shortages, with reports of stockouts and delayed installations across various platforms [5][6] - The logistics costs associated with cross-regional supply adjustments are rising, which may compress profit margins for manufacturers [11] Group 3: Strategic Responses - Companies are reallocating resources to address the installation and service demands in Northeast China, with Haier deploying over 1,000 installation workers and Midea sending teams from various cities to assist [18] - There is a growing emphasis on flexible production and regional supply coordination to better respond to market fluctuations and capitalize on emerging demand [12][18] - Manufacturers are exploring product innovations tailored to the unique climate conditions of Northeast China, such as energy-efficient models suitable for high temperatures and dual-function heating and cooling systems [18]