Core Viewpoint - The ongoing competition between Gree Electric and Xiaomi in the air conditioning market has intensified, with both companies engaging in a public dispute over sales data and market positioning, highlighting the fierce rivalry in the home appliance sector [4][6][10]. Group 1: Market Competition - Gree Electric's market director, Zhu Lei, refuted claims made by Xiaomi regarding its air conditioning sales surpassing Gree's in July, asserting that Gree maintained a leading position in the online market with a share of 16.41% compared to Xiaomi's 13.50% [4][6]. - Xiaomi's air conditioning revenue surged by 66.2% year-on-year in Q2, with over 5.4 million units shipped, marking a growth of over 60% [3][11]. - The air conditioning market is becoming increasingly competitive, with Gree facing challenges in maintaining its market share amid aggressive strategies from competitors like Xiaomi and Midea [3][10]. Group 2: Brand Strategy and Positioning - Gree has initiated a rebranding strategy, renaming its stores to "Dong Mingzhu Health Home" to enhance its brand image and integrate online and offline sales channels [3][20]. - The company is attempting to diversify its product offerings beyond air conditioning, as it has heavily relied on this segment for revenue, which accounted for nearly 80% of its total income [24][25]. - Gree's efforts to innovate and adapt to market changes include reducing sales layers and enhancing online sales capabilities, as seen in its live-streaming sales initiatives [17][20]. Group 3: Financial Performance and Challenges - Gree's revenue for 2024 is projected to decline by 7.26%, marking its first negative growth since 2021, while its competitors Midea and Haier continue to show strong performance [15][25]. - The air conditioning market's dynamics have shifted, with Gree needing to adapt to a blended online and offline sales approach to remain competitive [16][20]. - Despite Gree's historical dominance in the air conditioning market, the company faces significant pressure to find new growth avenues as its core business shows signs of stagnation [25].