Sales of air-conditioners fell in China this year for the first time since records began in 1991, dragged down by the low end of a near-saturated market, and dozens of local brands have disappeared.

Mergers of air-con manufacturers would rise next year.

The sales volume decreased by 7.24 per cent, and sales revenue declined by 1.98 per cent and sales of more advanced models were nevertheless on the rise.

This is the first time the sales of air-conditioners have dropped since monitoring began in 1991.

The market had almost reached saturation, with sales falling by 64 per cent in "first-tier" cities.

And the consumption potential of the third- and fourth-tier markets has not been fully realized.

Anti-dumping regulations and international rules curbing the use of hazardous materials had also had a "negative influence" on exports.

Apart from the decline of the domestic and international markets, the rise of energy and raw materials prices increased the cost of manufacturing and further narrowed the profit margin.

Some Chinese air-conditioner makers this year raised prices to pass on high copper prices to consumers and relieve some pressure on profit margins.

Copper tube is an essential component for air-conditioner manufacturing and the price of copper has soared this year.

Despite the overall downturn in sales, demand for machines that use advanced technology and perform multiple functions is increasing.

The major manufacturers have sensed the trend and started to shift their focus to technological innovation.

Qingdao Haier Refrigerator Co. Ltd. contains refrigerator and air-conditioner assets of its parent, state-owned Haier Group, China's top home appliance maker.

Haier Group's other listed unit is Hong Kong-listed Haier Electronics.

Guangdong Midea Electric is one of China's largest exporters of air-conditioners, with overall sales of about 10 million units last year. Its customers include the world's top retailer, Wal-Mart Stores Inc, and U.S. consumer electronics retailer Best Buy.

Source:佚名