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GfK 27 aaaaaa010807BJrefrigerator KELON AND MEILING’S FINANCIALS SHOW THAT MANUFACTURER39。 McKinsey analysis Specialty shores First tier city aaaaaaond tier city Third tier city Haier shopinshops Retailers in first tier cities ? Retailers in some large aaaaaaond tier cities ? Specialty store ? Haier shop in shops ? Retailers in aaaaaaond tier cities ? Specialty store ? Haier shop in shops ? Retailers in third tier cities ? Specialty stores Haier A/C sales Co. Haier sales branches in small aaaaaaond tier cities Wholesales in some third tier cities Haier sales center in first tier cities Haier sales center in some large aaaaaaond tier cities Haier sales centers in first and aaaaaaond tier cities Haier sales branches in big third tier cities East region North region West region South region 20 aaaaaa010807BJrefrigerator MARKET DEFINITION Supply (petitor) analysis Demand (customer) analysis Overall environment analysis Market definition Market assessment ? Market share by petitor ? Industry profitability or economics 21 aaaaaa010807BJrefrigerator WHILE THE MARKET IS GETTING MORE DOMINATED BY TOP PLAYERS COMBINED, MNC PLAYERS ARE GRADUALLY TAKING MORE SHARES * Rongsheng and Kelon bined Source: SINOMR, GfK, LIIC 100%= 1998 Others 1999 2023 aaaaaa Electrolux Meiling Kelon* Haier Siemens ? Haier and Kelon are the leading players. However, their market shares are decreasing ? Although lateers to the market, Electrolux and Siemens are quickly building up their positions by focusing on midto highend and highend markets ? Compared to other MNC players, aaaaaa39。 it is not a plete record of the discussion. aaaaaa010807BJrefrigerator KEY MESSAGES ?Refrigerator market is expected to grow at % annually from RMB 21 billion in 2023 to RMB 26 billion in 2023. Although growing at a rate as high as %, sidebyside refrigerator market is expected to remain very limited in the next 5 years ?In general, industry profitability for refrigerator is moderate. However, sidebyside refrigerators enjoy double digit return on sales ?Except sidebyside refrigerator, refrigerator market is led by local players. However, there are opportunities for MNCs to successfully build up their position by focusing on midtohighend segments ?The refrigerator industry is relatively “l(fā)owtech” and has low entry barriers. Entry into WTO is not expected to have direct huge impact on the petitive environment ?With market shares around 3 to 4%, aaaaaa is moderately positioned in refrigerator market. 2 aaaaaa010807BJrefrigerator MARKET ASSESSMENT Market assessment Supply (petitor) analysis Demand (customer) analysis Overall environment analysis Market definition 3 aaaaaa010807BJrefrigerator MARKET ASSESSMENT Supply (petitor) analysis Demand (customer) analysis Overall environment analysis Market definition ? Evaluation criteria, weight and rating ? Assessment of market attractiveness Market assessment ? Product/service definition ? Relevant regulatory environment and trends ? Relevant technological environment and trends ? Market size and growth rate ? Key buying factors ? Distribution channel structure ? Market share by petitor ? Industry profitability or economics 4 aaaaaa010807BJrefrigerator MARKET DEFINITION ? Product/service definition Supply (petitor) analysis Demand (customer) analysis Overall environment analysis Market definition Market assessment 5 aaaaaa010807BJrefrigerator PRODUCT SCOPE – WHITE GOODS Product group