The shadow of the recall clouded Gree: Brand humiliation or impact on national Day promotions

The impact of the overseas recall on gree may not only be limited to small appliances, although the company's main business is still based on air conditioning, and small appliances do not belong to gree electrical appliances, but the problem product can not be done and Gree brand perfect cutting. The overseas recall will bring the Gree brand into disrepute, thus affecting people's confidence in the Gree brand, whose most immediate negative consequences are likely to affect the next national day promotion.

The recall has tarnished the Gree brand.

September 2013, Gree suddenly announced that the opening of the temporary suspension since September 13, 2013, because the Zhuhai Gree Electric Appliance Co., Ltd. occurred on the share price may have a greater impact, there is no public disclosure of major issues. September 16, Gree electric appliance company shares fell sharply, the recovery card down 4.82%

This led to Gree electric emergency suspension of the incident, is gree due to quality defects announced the recall of North America 2.25 million dehumidifier. It is reported that the recall of a total of 12 brands, 2.25 million Dehumidifier, Gree agreed to cash compensation for each consumer initially to 110 to 400 U.S. dollars to purchase the cost of the dehumidifier, the total amount of compensation for up to 570 million U.S. dollars.

Although Gree claims the recall was voluntary, there are more signs that the recall was forced and that Gree had deliberately been passive in dealing with security concerns. The accident has caused a series of economic losses abroad, according to data from US consumer safety Commissioners, 165 incidents related to the problem, including 46 fires, caused 2.15 million of dollars in property losses.

What needs to be pointed out is that gree for possible security risks, has been a conflict of attitude. It has been reported that in June 2013, Gree's U.S. partner Soleus to the court, said Gree tried to cover up its products in the United States, dehumidifier product defects. Gree, however, responded that the allegations were seriously inconsistent with the facts and would be actively engaged in legal proceedings.

Gree's approach is a negative influence on the growing confidence in China made abroad. Well-known household appliance analyst Liang that the recall of Gree's quality of Word-of-mouth impact is very large, dehumidifier is the main product of small household electrical appliances, recalls that the production process of gree home appliance control LAX, which will affect the quality of gree air-conditioning brand image. Because there is a connection between brands.

Some experts also hold the opposite view, for instance, Sting, general manager of the Sino-Hong White power research, said that the impact of the recall on Gree should be from two domestic and foreign markets, short-term impact in the country, but in the long term Chinese consumers will forget this overseas recall. As for overseas markets, it is likely to be much tougher, and the US is likely to step up its scrutiny of gree products.

or influence Gree products National Day promotion

Online about the hidden dangers of Gree's accusations have been overwhelming, as the incident occurred in September, and the traditional home appliances manufacturers sales peak-National day, this incident may make Gree's sales are affected.

Liang, a well-known home appliance analyst, said the recall will make some consumers worry about the Gree brand, which is very unfavorable to the national day promotion.

However, Luo Qingxi, senior director of Paller consulting firm, said that the impact of the national day promotion needs to see the extent of the event, at present, the public opinion of the criticism of Gree is still mainly in the industry and media level, and did not come from the end consumer voice. If public opinion stops here, the impact on Gree may be minimal.

Sting, general manager of the White Electricity research in China, said, Sting that the consumer's concern about gree overseas recall is not high, and gree air-conditioning to the domestic channel and market control ability is still very strong, as two different categories, the impact on air-conditioning is not big.