Saudi Arabia is the biggest country and air conditioners demand market in gulf region. Due to summer season and high temperature reason, the country has witnessed a significant and an upsurge in the demand for air conditioners. Air conditioning is necessity in the Saudi Arabia, given its geography and climate. Therefore, the market for air conditioners in the country is anticipated to grow at a significant rate over the next five years. Moreover, growing construction activities, mega developmental projects announced by the government and private companies, such as educational institutions, hotels, office spaces and expansion and development of cities in the country are also propelling the demand for air conditioners in Saudi Arabia.
The air-conditioning market in the Kingdom is poised to exceed SR9.37 billion ($2.5 billion) annually by 2019, local media said quoting a report released by a global research firm. The report from “Saudi Arabia Air Conditioner Market Forecast and Opportunities,2019” said air conditioners market in Saudi Arabia is projected to grow at a CAGR of over 9% during 2015-20. Air conditioner sales in the country are being driven primarily by cities such as Riyadh, Madinah and Jeddah, due to high population density and increasing infrastructural development in these cities. Further, with increasing purchasing power, demand for advanced air conditioners equipped with new features such as air purification, app control, etc., is also growing. Split air conditioners segment was the largest revenue generator for the market in 2014, followed by Chillers and Window air conditioners. However, over the forecast period, Chillers are anticipated to witness rapid growth, overtaking Split air conditioners, to emerge as the leading segment by 2020.
Saudi Arabia is the only country to use 60Hz frequency in Middle East, also the largest air conditioners market in the region Saudi Arabia annually produce 1.3 million units of windows, of which 25% of the products in 50Hz, and for export to other countries.80% of market occupied by local windows air conditions OEM manufacturers, the split air conditioners and cabin at air conditioners is still controlled by multinational companies, especially in Japan, South Korea and The United States brands. More and more foreign brands to enter Saudi Arabia market, the local manufacturers are facing tremendous pressure. Because Saudi Arabian air conditioner market is fiercely competitive, window and split air conditioner unit prices continued to decline. Despite the growth in the number, but the size of the market in view of the amount of shrink. How to seize and increase market share?
- First, product reform and innovation, inject new life into enterprise. Improve product quality and increase the range of new products and features, adding new products, flanking product to enter new market segments, efforts to expand production and sales.
- Secondly, enhance brand awareness and brand image. Enterprise’s sales performance and reputation, and image have a great relationship. Cosumers only awareness brand and generate goodwill and trust, will be possible to buy products. Therefore, to enhance the brand’s market share, it must expand brand awareness and establish a good brand image and brand personality.
- Finally and most importantly, a price war is the most original, the most lethal tactics. The local manufacturers by constantly reducing the cost of imported air conditioner parts from China, like copper fittings, chillers. China’s rich mineral resources, low price, as Kaweller factory offer custom air conditioners copper fittings, include copper branch joints,copper tubes assembly,refrigerant distributors,copper manifold,copper tees/filters/elbows/couplings. To help local manufacturers in Saudi Arabia to enhance cost competitive and labor productivity.
In the promotion of product quality, while doing everything possible to reduce the cost of production, thereby reducing the price of the product, so that consumers get the maximum benefit producers of goods to e in an advantageous position in the fierce competition in the market and expand the market share of their products.
