The Internet of Things is exerting a huge deconstructive effect on the consumption demand model and business model of the air conditioning industry at an unprecedented speed, and the connotation and extension of air conditioning products, as well as the industrial attributes of enterprises, have changed as a result. In August last year, MBO, a pioneer in the field, introduced the Internet of Things shared air conditioning model. By embedding GPRS4G chips and IoT technology applications and using free or low basic hardware fees and annual usage fees, the separation of product ownership and usage rights was realized, opening up a completely new path for the development of the enterprise.
Over the past year, MBO air conditioning has experienced rapid growth in the domestic market, verifying the enormous impact and advantages of this model. MBO Air Conditioning has entered the top ten brands in the industry with a scale of millions of sets. On June 8th, based on last year’s 1.0 version, MBO launched the 2.0 version of the Internet of Things shared air conditioning, and introduced 4 new product series and detailed implementation measures, thereby pushing air conditioning products into the era of free hardware.
The commercial version is free to install, and the home version breaks the industry’s price barrier
In August last year, MBO introduced the 1.0 version of the Internet of Things shared air conditioning model, marking the birth of the world’s first shared air conditioner under the MBO brand. This action brought a new vision to the air conditioning market development and more importantly, changed the high-cost burden borne by consumers when purchasing air conditioners. After more than 10 months of research and development, testing, and market application, MBO launched the 2.0 commercial and home versions of shared air conditioning on June 8th, marking the beginning of an era of zero-cost installation and hardware-free air conditioning.
It is understood that the commercial version 2.0 shared air conditioning is mainly targeted at schools, hotels, apartment dormitories, and other scenarios. On July 1st, 4 commercial 2.0 series shared air conditioning products became an important carrier for MBO’s new business model expansion.
The four products completely achieved zero-cost installation of air conditioners, with MBO mainly making profits by collecting annual fees from consumers. The annual usage fee for a 1-ton cool and heat air conditioner is 499 yuan.
This commercial version fee plan brings significant cost savings to the corresponding users. For example, for a school classroom, based on 60 square meters and 2 tons of wall-mounted units required, the cost would only be 40 yuan per person per year. In university dormitories with 15 square meters that require 1 set of 1.5-ton air conditioners, the cost per person per year is also only 75 yuan.
The 2.0 home version shared air conditioning is mainly aimed at individual consumers and the rental housing market. It is planned that the 2.0 home version of shared air conditioning will be available on e-commerce platforms from August 1st, and all users can place orders for pre-order with a down payment of 999 yuan and an annual usage fee of 150 yuan.
It is worth mentioning that the home 2.0 version of the shared air conditioning will continue to be iterated and upgraded. It is reported that starting from October 1st, MBO will launch the high-end 2.0 version for mid-to-high-end users on e-commerce platforms. The original price of nearly 4600 yuan for a luxury 1.5-ton energy-efficient air conditioner will now only require a down payment of 1999 yuan and a usage fee of 299 yuan, breaking through the industry’s price barrier that is often above 4500 yuan.
Whether it is the commercial version or the home version, MBO is, by separating ownership and usage rights, not only greatly reducing the purchase cost for consumers but also creating a new future for market development with a completely new model.
Free service throughout the entire process disrupts traditional industry after-sales service models
Recently, MBO’s limited sale of 1-ton cool and heat air conditioning for 999 yuan caused quite a stir in the industry. The product was quickly sold out as soon as the promotion began. Starting from June 8th, the introduction of the aforementioned shared air conditioning products and corresponding fee plans is expected to intensify further changes in the air conditioning industry.
It is understood that consumers of the commercial and home version of the shared air conditioning products under the MBO model can enjoy the entire process of free services, and MBO Air Conditioning’s innovative services will also have a disruptive impact on the traditional service systems of the air conditioning industry.
In addition to the various after-sales service benefits stipulated by national policies, all users of MBO’s shared air conditioning products can enjoy free maintenance, free fluorination, and free annual cleaning once every two years. Under the shared air conditioning model, it not only reduces the purchasing cost of consumers but also significantly reduces the operating and after-sales service costs, thereby establishing a new standard for after-sales service systems.
MBO’s air conditioning service model effectively avoids the common problems in the industry, such as slow installation and unclear costs. Moreover, it can fully understand the full-process usage status of the product through IoT technology, remind users to maintain air conditioning products in a timely manner, and create a healthy living environment for users, truly relieving consumers of their concerns about the after-sales service and use of air conditioning products.
Intentional orders for shared air conditioning have reached 100,000 sets, causing a transformation in the enterprise
MBO is undergoing a transformation due to the shared air conditioning model. Its sales volume leaped to over a million sets last year, making it a dark horse in the Chinese air conditioning industry. On March 6th this year, the initial project of its production base in Wuhu, Anhui, covering an area of 400 acres, with an annual production capacity of 5 million sets, was officially put into operation. MBO has now completed the self-industrial chain support for its two major bases in Shunde, Guangdong, and Wuhu, Anhui.
At the same time, MBO has also entered a comprehensive stage of internationalized brand operation. In November last year, MBO signed a sponsorship deal with the New Zealand national basketball team for the FIBA 2019 Basketball World Cup, becoming the sole title sponsor and contributing to the international development of its brand, thereby upgrading MBO from a member of the top ten brands in the domestic air conditioning market to an international high-end luxury brand.
It is reported that since the introduction of the shared air conditioning model, MBO has received positive feedback and recognition from the market, with nearly 100,000 units of intentional orders currently being negotiated. This year, with the shared mode as the driving force, MBO is accelerating the layout of commercial circulation channels. On the one hand, it is actively expanding offline channels and is vigorously developing the specialty store system. On the other hand, it is accelerating the development of online platforms. MBO air conditioning has successfully entered mainstream e-commerce platforms such as JD.com and Tmall, with sales on these platforms growing exponentially.
The shared air conditioning has not only brought significant momentum to MBO’s market development process but has also broadened the connotation and extension of air conditioning products themselves. This is especially true in the current environment of continuous penetration of IoT elements and upgrading of smart technologies. Through the separation of ownership and usage rights, the company has redefined the attributes of air conditioning products. MBO’s shared air conditioning not only provides users with stable cooling, heating, and quality service guarantees but also becomes an information terminal for enterprises to interact closely with users.
With the launch of the shared air conditioning 2.0 commercial and home versions and their rapid marketization, MBO’s corporate positioning has also shifted. Because of the shared air conditioning model, MBO has transformed from a traditional home appliance manufacturing company to an Internet company that integrates technology research and development, product manufacturing, and circulation sales. Moreover, compared to a general internet company, MBO’s vertically integrated industrial chain capabilities stand out even more.
In 2018, MBO’s sales volume is expected to reach a new level, and the ever-growing sales scale is built upon continuous innovation in business, production and sales models, and after-sales service models. It is precisely these innovations that have allowed MBO to open up a new path for the development of the Chinese air conditioning industry.