As anxieties over the lackluster sales at the beginning of FY 2019 (August 2018) looms the industry, Aux dazzles the eyes of all with its popular online wholesale meetings in more than 20 provinces and 4 provincial-level cities, giving credence to the effectiveness of its online wholesale mode.
Aux initiated a non-distributor mode that connects dealers directly with makers, called online wholesale.
It is learned that the half-year application of the new mode allows Aux to gain ground at fast pace, seeing its in-store sales surpassing the full-year in-store performance of last year in only the first eight months of 2018, with the number of stores multiplied at the same time. Heading into the second half of 2018, Aux expanded its online wholesale mode to 21 provinces and 4 province-level cities with the participation of more than 20,000 dealers, receiving payment 50% more than last year at the beginning of FY2019. Aux estimates that, its in-store sales is expected to double as of the end of 2018 thanks to its unique offline strategy which has brought it substantial growth amid mounting pressure.
Aux’s online wholesale mode streamlines distribution system by removing distributors off the hierarchy, transferring their profit to dealers and improving the turnover at the same time. It also brings consumers closer to manufacturers, which is believed to be beneficial for consumer protection.
It’s worth noticing that, Aux has thought ahead of the industry to launch an internet-based transformation when the industry was in a downturn last time, allowing it to take a position in the leading group of the industry. Now, it gets a head start again with its transformation in channel, enabling it to tap into the value of offline market at the best time.
It is learned that, Aux posted domestic sales volume of 9.12 million units of air conditioners in FY 2018, a year-on-year growth of 40.05%, and overseas sales of 4.45 million units, a year-on-year growth of 15.36%, both faster than industry average. Its total sales of more than 13 million units at home and abroad consolidated its position as one of the industry leaders. It’s worth mentioning that, Aux’s online performance, with a slowing growth rate, still dwarfed the industry with both its online sales value and volume topped the list. On JD.com alone, Aux sets the goal of 15 billion Yuan of sales for year 2018.