In a recent interview, Kui Jun, head of the air conditioner division at Dreame, highlighted that the most significant challenge facing the industry is not the debate over copper versus aluminum, but the shift from price wars to value competition.
He stated that price wars often lead to cost-cutting and quality reduction, ultimately damaging consumer trust in brands.
Kui Jun emphasized that Dreame Air Conditioner will not engage in low-level, vicious competition. Instead, the company aims to carve out a differentiated, high-end path through core technology, innovative products, and high-quality service.
Addressing the overall industry downturn and intensifying price competition, Kui Jun clearly stated that Dreame Air Conditioner adheres to "value competition" rather than "price competition," with the goal of becoming the market share leader in the global high-end market.
He believes that only by moving beyond current material labels and price wars, and returning to providing more value to users through technological innovation, can the mature air conditioning industry find a new growth curve.
Kui Jun revealed that from January to the end of April this year, Dreame Air Conditioner's global revenue has exceeded 100 million yuan, with exports accounting for over 40% of sales, and the business unit has already achieved profitability in a single month.
Discussing Dreame's pioneering robotic arm air conditioner, he noted that while some competitors have replicated its form, they still need time to catch up in terms of underlying technology.
Dreame's Global Ambitions
Kui Jun explained that Dreame is a brand with a global ecosystem. In the home environment, beyond its established business units like robot vacuums, floor washers, and personal care products, the group has identified major home appliances as a key strategic direction. Air conditioners, refrigerators, washing machines, and televisions naturally became core business segments, leading to Dreame's entry into the air conditioning sector.
The company's underlying core technologies, including high-speed digital motors, bionic robotic arms, and AI algorithms, can be applied to air conditioner products. Their first-generation flagship air conditioner was developed based on the reuse of these technologies, resulting in the robotic arm air conditioner.
Regarding the current industry downturn, Kui Jun believes that air conditioning consumption must be value-driven to spur industry growth. The traditional approach in the industry has focused on stacking various parameters. However, deeper innovation lies in the technologies Dreame can leverage, such as bionic robotic arm technology, radar technology, and algorithm technology. Applying these to air conditioners can create many differentiated selling points.
He stated that from the outset of entering the air conditioning market, Dreame defined its goal as targeting the high-end segment, aiming for the number one market share position in the high-end market globally, driven by value. The company hopes to elevate the price point of the high-end air conditioning market further and is developing innovative products that are currently unavailable in the industry.
Simultaneously, Dreame is upgrading air conditioners from simple cooling/heating temperature control machines to AI-smartened whole-house air management systems, integrating air flow, humidity control, purification, and AI scene linkage to meet the needs of more young, personalized consumers.
Technological Edge and Imitation
Discussing the application of bionic robotic arm technology to air conditioners, Kui Jun pointed out the challenges. The technology was adapted from the characteristics of robotic arms in robot vacuums, which perform high-frequency extensions and contractions for cleaning and must withstand various external impacts. An air conditioner's robotic arm needs to operate more quietly and stably, with higher and more precise requirements for handling moisture, dust, and other details in the air.
He mentioned that the engineering difficulty was not as great as imagined. Through technology reuse, the most important tasks were securing patents and achieving product innovation. Dreame has a large team of air conditioner R&D personnel who conducted thorough industry research. Combining technology reuse with the already mature capabilities of air conditioner manufacturing, they ultimately created the innovative robotic arm air conditioner.
The product's distinctive appearance and many selling points attract consumers. Sales to end consumers are often driven by features like the robotic arm's left-right air delivery, zoned airflow, and its unique design.
Kui Jun addressed concerns about user acceptance of the novel design, explaining that extensive pre-research and large-scale offline user surveys involving consumers, distributors, and industry insiders were conducted before product development. Surveys were also carried out in overseas markets through Dreame's established channels, where clients, consumers, and distributors showed significant interest in the robotic arm product.
Regarding the defensibility of the technology, Kui Jun observed that some competitors have already started producing or launching products with zoned air delivery features. However, in terms of underlying technology—whether it's the reused cleaning motor technology, motor technology, bionic robotic arm technology, or AI algorithms—competitors still need time to achieve products as refined as Dreame's.
Core Competitiveness and Market Strategy
Kui Jun analyzed the current market landscape, dominated by a few giants. He stated that while the entire industry is focused on cutting costs, prices, and competing on parameters, Dreame's approach is different. The company uses concepts like bionic robotic arms, high-speed digital motors, and AI-driven air flow sensing to create more technologically advanced air conditioners, which is a key point of differentiation.
Building on the relative success of its flagship product, Dreame plans to expand its product matrix and channel development through more innovative products, aiming to quickly gain a reasonable share of the high-end market.
The company is also expanding globally, targeting the establishment of over 100,000 retail points, including shopping mall presence, within this year and the next. With products, channels, and consumer recognition in place, and by refining its product portfolio, Dreame believes it can naturally secure an appropriate market share.
On the topic of intensifying price wars, Kui Jun acknowledged that price competition is inevitable in any industry and is a necessary path in market expansion and consumer choice. While Dreame does not deny the rationality of industry price wars, it prefers to adhere to creating valuable products rather than just cheap ones, offering better products and benefits to partners and consumers.
He expressed hope that, based on Dreame's mature motor, robotic arm, and algorithm technologies integrated into its air conditioners, the company can continue technological innovation to create more valuable products. Dreame will also make long-term investments in core traditional air conditioning technologies, including compressors and motors, ensuring products are not only innovative and valuable but also technically sound.
Regarding production, Kui Jun explained that the domestic air conditioning industry has a mature supply chain. Dreame currently employs a model of core technology self-research and controlled manufacturing. The company manages product design, key components, system integration, and overall production quality control. For some production stages, Dreame collaborates with leading brands and factories to ensure delivery efficiency. For the domestic market, Dreame is also building its own factory, with rapid progress on its major appliance headquarters base.
Perspective on Competition and Industry Challenges
When asked about competitors like Xiaomi, which has seen rapid growth in air conditioners, Kui Jun praised Xiaomi as an excellent brand, noting its impressive achievements in a short time and its role in driving innovation within the industry.
He reiterated that Dreame emphasizes value competition over price competition. The competition with Xiaomi, he hopes, will be healthy, bringing positive changes to the industry and offering global consumers more diverse products.
Kui Jun stressed that the industry's biggest challenge is not the debate between copper and aluminum materials, but how to transition from price wars to value competition. He believes many leading brands also wish to create more valuable products. Currently, widespread price wars ultimately lead to cost-cutting and quality reduction, pushing the industry into恶性竞争 (malicious competition), which ultimately damages user trust in brands.
He welcomed more companies like Dreame to voice different opinions and attempt diversified explorations, moving beyond material labels and price competition, and returning to providing users with more value through technological innovation to help the mature air conditioning industry find a new growth curve.
Material Selection and Warranty Policies
On the industry discussion about copper content and aluminum substitution, Kui Jun stated that aluminum substitution is a path explored for technological diversification. Any material has its applicable boundary conditions. Copper's thermal conductivity, corrosion resistance, and industrial maturity, verified over decades, are undoubtedly reliable. Aluminum's advantages in lightweight, low cost, and corrosion resistance still require long-term reliability verification and R&D investment by companies.
Dreame Air Conditioner currently uses all-copper materials in its full product line. The company does not emphasize or avoid specific materials but adheres to a quality baseline. All上市 (launched) air conditioner products undergo strict, long-cycle reliability testing to ensure stable performance in various environments without significant degradation. Dreame is also exploring industry trends, such as the potential use of aerospace materials, to bring more diverse solutions to air conditioners.
Regarding competitors offering extended free warranty periods, such as 10-year warranties, Kui Jun expressed that indefinitely extending warranties should not be the main battlefield for air conditioner brands. Dreame's service standards align with industry leaders. He noted that air conditioners are durable household goods with inherently long lifespans. The user replacement cycle cannot be solved simply by extending free warranties. Instead, efforts should focus on improving product quality, innovation, after-sales service channel development, and purchase incentives to enhance the user experience when upgrading.
He emphasized that ensuring product quality and innovation is paramount. Whether a free warranty is 6 years, 10 years, or longer is merely an addition to a product that already has good quality. If the product's inherent quality is poor, even a lifetime warranty is meaningless.
Financial Performance and Brand Building
On adapting products for different regional markets overseas, Kui Jun highlighted that global expansion is Dreame's strength. The air conditioner business leverages Dreame's existing overseas channels and brand power. The robotic arm air conditioner has been well-received in international markets. Dreame's air conditioner R&D system is robust, developing and promoting global products that meet the varying energy efficiency and product characteristic requirements of different countries.
The underlying logic before product launch involves conducting user research in global markets to develop products suited for worldwide markets, not just for a single country or region. In system building, Dreame employs localized partnerships and direct brand management. In key markets, the company engages in exclusive or deep collaborations with local leading service providers, with Dreame uniformly outputting strict installation standards,工艺规范 (process specifications), and testing standards to ensure a consistent Dreame experience for users whether in Europe, Southeast Asia, China, or Russian-speaking regions.
Regarding profitability, Kui Jun reported that Dreame Air Conditioner products began陆续上市 (gradually launching) last December, with actual sales starting January 1st this year. From January 1st to the end of April, global revenue has already exceeded 100 million yuan, with exports constituting over 40% of that revenue. Within these four months, the business unit has achieved profitability in a single month, and it is anticipated that by August this year, the unit could achieve stable monthly profitability for the entire year.
On building brand recognition and trust among consumers who may still see Dreame as a new player in air conditioning, Kui Jun noted that through appearances on events like the Spring Festival Gala and participation in various exhibitions, Dreame is gradually establishing itself as a global brand in consumers' minds. Most consumers no longer see Dreame solely as a traditional cleaning brand; they are beginning to know and recognize Dreame as an ecosystem brand.
Dreame can not only孵化 (incubate) top-tier smart products but also sell products globally with high brand influence and product溢价 (premium). Having achieved number one market share in the cleaning category in many countries and regions, Dreame naturally applies this channel and sales logic to also excel in the major appliance business.
He concluded by stating that Dreame's air conditioners possess their own core technologies, with new awards and patents added monthly. The globally首创 (first-of-its-kind) dual robotic arm technology is gaining increasing recognition within the industry. By continuously communicating the underlying technological logic across various channels, Dreame aims for consumers to perceive and acknowledge that Dreame has substantial technical底蕴 (heritage) in manufacturing air conditioners.
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