On June 30th， according to Kuai Keji， Zhu Lei， the Marketing Director of Gree Electric， publicly criticized his competitors， stating that the current market strategy of severely undercutting prices only self-destructs without eliminating rivals.
Zhu Lei highlighted that a Chinese television brand， already recognized in overseas markets， has leveraged its existing distribution channels to enter the air conditioning sector. However， this brand is reportedly selling air conditioners with a net profit margin of merely 3%， essentially offering bare-bones products at minimal profit.
He quoted overseas dealers of this brand， who allegedly said， “We have no KPIs; our KPI is to eliminate our Chinese competitors by driving them out of the market.” Zhu Lei expressed strong doubts about this strategy， arguing， “But can you eliminate your competitors? You can only eliminate yourself.” He added， “The industry leader must live up to its status.”
Zhu Lei called upon fellow Chinese manufacturers with ambition and foresight to work together to elevate the “Made in China” brand on the global stage， enabling a more sustainable and far-reaching development for all.
This commentary has sparked significant online discussion. Many netizens agree that such aggressive price wars ultimately offer no real benefit to consumers. Concerns were raised that other manufacturers might be forced to compromise on the quality of components to remain competitive. Given that appliances comprise numerous parts， a decline in the quality of critical components could negatively impact the lifespan and reliability of the products. This raises the question of how consumers perceive such a race to the bottom.
