ZHUHAI, China — Gree Electric Appliances Inc. of Zhuhai (Gree) is aiming to carve out a larger share of the air conditioning market in the Philippines, backed by improved stock management and innovative new products.

William Zhao, regional general manager for Gree’s Asia and Oceania unit, said the company wants to once again capture a significant market share in the Philippines, similar to what it had before the pandemic.

“In the Philippines, our market share in recent years was not so good. We need to do more work to improve it to reach the top,” he told visiting reporters at Gree’s headquarters here.

Gree struggled to keep up with the sales of other appliance manufacturers, including fellow Chinese firms, during the pandemic due to issues with its local distributor.

Unlike other companies that enter foreign markets by establishing their own branches, Gree relies on local partners to help develop demand for its products in each country.

Based on its website, UNI-TECH Philippines Industrial Machinery Inc. is the current authorized distributor of Gree products in the Philippines, including air conditioning units and other home appliances.

Zhao said the local distributor was unable to meet consumer demand during the pandemic due to logistics restrictions that led to stock shortages.

In addition, he said the distributor faced challenges with its internal structure, necessitating a near-rebuild of the company.

“Right now, the current distributor, after two or three years, has solved the internal problems,” said Zhao. “So we have the ability to develop the market and reach the top.”

For Gree, its target in the Philippine market is to become number one in air conditioning sales, edging out appliance giants from Japan and South Korea, as well as emerging Chinese manufacturers.

The company’s confidence is built on its market dominance elsewhere, such as in Indonesia, Southeast Asia’s largest economy.

At present, Gree is the leading company for residential air conditioners in Indonesia, while it ranks second in commercial air conditioners.

To capture a larger share of the Southeast Asian market, Gree is also looking to expand its presence in Thailand and Malaysia. There are, however, no plans yet to expand its manufacturing footprint beyond its existing sites in China and Brazil.

Zhao said the company aims to boost sales in the region by introducing products that keep pace with the latest developments, including artificial intelligence (AI).

There is no hesitation in adopting new technologies, as consumers are increasingly interested in purchasing products aligned with technological advancements rather than traditional systems, he said.

“For Gree, we want to provide the most advanced product and the [best] quality product to the customer,” said Zhao.

Sales of these advanced appliances are expected to cushion the impact of the ongoing global oil crisis on Gree’s sales this year, which are projected to remain flat.

Gree, the world’s largest manufacturer of residential air conditioners, exports and sells its products to more than 190 countries.