Core Viewpoint - The home appliance industry is shifting from a growth phase to a mature phase, prompting high-end brands like Gree to launch sub-brands to capture the price-sensitive market, particularly targeting the Z generation [1][3][5]. Group 1: Market Dynamics - During the growth phase, high-end brands focused on quality and brand reputation, avoiding low-price competition, as the market was characterized by high demand for premium products [4][5]. - The current market environment has changed significantly, with economic growth slowing and a trend towards consumer downgrade, leading to a need for brands to adapt their strategies [5][6]. - The Z generation, now a major consumer group, prioritizes price and practicality over brand prestige, making it essential for brands to address this demographic's preferences [5][7]. Group 2: Strategic Responses - Gree has initiated the launch of its sub-brand Jinghong to penetrate the low-price segment, following the successful strategies of competitors like Midea and Haier, which have already established sub-brands targeting younger consumers [3][7]. - Haier and Midea have both developed sub-brands to cover the entire price spectrum, with Haier's Casarte targeting high-end markets and Midea's Hualing focusing on high cost-performance for younger consumers [6][7]. - The strategy of using sub-brands to capture lower-end markets allows high-end brands to maintain their premium image while expanding their market share [8]. Group 3: Future Outlook - The introduction of sub-brands is seen as a strategic necessity for high-end brands to sustain growth in a mature market, as neglecting the low-end segment could limit overall market scale [8]. - Gree's strategy to leverage its strong manufacturing capabilities to offer high-quality, cost-effective products under the Jinghong brand is expected to resonate well with the Z generation [8].