Yesterday, because of a slogan, Guangdong Midea Refrigeration Equipment Co., Ltd. sued Zhuhai Gree Electric Co., Ltd. (hereafter referred to as 'Grace Company') to the court. The Guangzhou Daily all-media reporter went on the spot and the two sides fought with each other on a number of issues. 3. The verdict of the trial of the first instance ended yesterday and the sentence will be imposed.
The industry believes that the current air conditioning sales season, the two giants took the opportunity to 'fight'.
Origin: A slogan that caused the ad
It is understood that the two parties are in court because the American company believes that Gree’s “cool and windless” slogan is a propaganda and promotion of Midea’s company from 2015. The company’s company sued that the advertising language was Their original, originality, after a lot of publicity, promotion, has formed a certain contact with a certain series of air conditioners in the United States, to play a role in identifying different from other air conditioning brand logos.
When Gree sold some models of air conditioners on an e-commerce platform, it publicly advertised 'a feeling of coolness and non-wind', which made it easy for consumers to associate it with the above-mentioned series of air conditioners of Midea. In response, Midea’s company requested that Gree be ordered to: Immediately stop the unfair competition behavior, that is, immediately stop using the 'cool and senseless' slogan; compensate the US company with economic loss of 4.8 million yuan and compensate the US company with a reasonable expenditure of 100,000 yuan for stopping infringement; apologize to the company of the United States , In the official website of Gree's official website and the "Legal Daily", "Air Conditioning Business", "China Electronics News" issued a statement to eliminate the adverse impact of the company to the United States; to bear the costs of the case.
Both parties clash
Focus 1: 'Where is there a sense of coolness?'
The company in the United States alleges that since 2015, the company has spent huge sums of money through television, newspapers, radio and other media publicly and vigorously publicizing the company's "cool and non-wind feeling" technology comfortable Star series air conditioner. After continuous, massive publicity, Promotion, the relevant public or consumer sees the slogan, it is easy to contact it with the plaintiff Midea company's comfortable star series air conditioner with 'cool feeling without wind' technology.
Gree said that the air conditioning 'no wind' effect is not the first of a company's beauty. Midea does not have exclusive rights to use this word of propaganda. This propaganda word has been widely used by domestic and foreign home appliance industries as a user experience. From June 10th to the present, individuals or units in China have applied for patents for inventions or utility models that have the function of “no wind” and are produced in the same industry abroad.
Focus 2: Intense debate on whether to conduct on-site inspections
The company in the United States filed a court test to determine whether the defendant Gree air-conditioning had reached a 'cool feeling without wind' technology in order to verify whether it constituted false propaganda.
The proposal was rejected by Gree. 'Is the court a laboratory?' Gree believes that the court failed to test the air conditioning conditions and refused to test in court. Midea insisted to be in court for inspection. Midea believes that although the on-site conditions are limited, at least test the wind speed. In response, the judge announced adjournment of the court for ten minutes. He then filed a court trial on the United States Gree's air conditioning products. After discussion with the collegial panel, he believed that the technical parameter testing of the air conditioner should be conducted by a professional agency and not be tested in the field.
Focus 3: 'Is there a sense of coolness without wind'? Is it determined by objective parameters or subjective feelings?
Gree emphasizes that no sense of wind is a common feeling, it is a feeling of the human body, and it does not need any parameters. The American company believes that no sense of wind is an objective standard, not a subjective criterion, and it needs parameters.
Lawyers’ claims
'We spent nearly 360 million yuan to spread from 2015 to now. We advertise after the news broadcast on CCTV. Consumers will think of this slogan and think of the United States. You can't just use our slogan.' Zhang Zewu told Guangzhou Daily’s all-media reporter. 'We are expressing our belief in Gree's brand, and we believe in Gree's quality. And the word 'cool and non-wind' is only part of our slogan. Advertisements are now updated. Gree's attorney Zhang Pingping said in an interview with the Guangzhou Daily media reporter.
Industry: Intensified competition among air-conditioners during sales season
For the lawsuit, both parties did not make specific comments. As of the time of the press release, Gree's headquarters did not give a reply, and Midea’s corporate headquarters did not speak for the time being.
It is reported that the two giants have been fierce competition, especially in the field of patents. There have been numerous lawsuits in the field of patents. According to media reports, Gree and Midea’s cumulative number of interlocutory cases involving patents totaled as many as 12 cases, with accumulated claims amounting to several hundred million yuan.
According to the industry, hot weather occurs in many places in China this year. At present, air-conditioning has entered the sales season. The competition between the two giants has intensified, and it is 'fighting' during the sales season.
Performance Comparison: Each has its own strengths
According to a comparison of Guangzhou Daily's media reporters, in 2017, Midea Group achieved a revenue of 2,419.91 billion yuan, an increase of 51.35%. According to 2017 Fortune 500 list, Midea ranked 450th, up 31 places from 2016. According to Forbes In the 2017 Global Enterprise 2000 list, the United States ranked 335, up 67 from the previous year. In the first quarter of this year, the Group's operating income increased by 17.17% to 70.288 billion yuan.
Gree Electric Co., Ltd. is obviously inferior to Yumei Group in terms of revenue. According to statistics, in 2017, Gree Electric Appliances’ operating income was RMB 150.020 billion, an increase of 36.24% year-on-year. In the first quarter of this year, the company’s operating revenue increased by 33.26% to RMB 40.025 billion. This also means that, from the perspective of operating income, the Midea Group in 2017 was 1.61 times that of Gree, which was 1.76 times in the first quarter of this year.
However, Gree’s profitability surpassed that of Midea Group. The data shows that in 2017, Gree’s operating income was nearly 100 billion yuan, but the net profit attributable to shareholders of the listed company was 1.29 for the same period for the Group. Times, reaching 24.402 billion yuan, an increase of 44.87% year-on-year, which is 2.54 times that of Midea Group. In addition, in terms of ROE, Midea Group fluctuated more, and Gree Electric was relatively stable. In 2010, the net assets income of Midea Group The rate was 39.46%, Gree Electric Appliances was 36.74%, all were very good companies. Since then, the net asset yield of Midea Group has been down to 25.63% in 2017. Gree Electric maintains a high level of 37.51%.
Gree Electric Appliances Holds 2017 Shareholders Meeting Yesterday
Dong Mingzhu announces four sectors of Gree Industrial Planning
Guangzhou Daily News (all media reporter Zhang Lu) Yesterday, Gree Electric held the 2017 Annual General Meeting of Shareholders. Dong Mingzhu responded to the general concern of the outside world, the stock price decline, future planning and other topics. Whether Pearl is re-elected is not within the scope of this shareholders meeting.
According to the data, as of March 31, 2018, Gree Electric had a total of about 435,200 shareholders. 'The minority shareholders holding Gree's 100 shares have come to more than 100 today. It can be seen that Gree Electric has received unprecedented attention. ' Dong Mingzhu said.
At the general meeting of shareholders, Dong Mingzhu said, 'This year I would like to engage in chips, stocks will fall. Why do other people engage in chip stocks to rise, Gree chip stocks fell, because we are doing it. 'She also said Gree next year, all air-conditioning On its own chip, when answering the chip business, Dong Mingzhu said, 'The chip has been researched for three years and it is considered a small accomplishment, but in my opinion it is still fur. As for how to make a chip, we can't tell you yet. We will do it, and we will continue to do it.'
Regarding why Gree did not make any dividends, Dong Mingzhu said at the general meeting of shareholders that Gree was more powerful. On April 26, Gree Electric announced its 2017 annual financial report, with total revenue of 148.286 billion yuan, a year-on-year increase of 37%, and a net profit of 224.02. Billion yuan, a year-on-year increase of 45%, hit a record high. However, Gree Electric had no dividend plan in 2017. This is the first time that Gree Electric Appliances has not paid dividends since 2007.