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On the 3rd, a reporter learned from the Shunde Quality Supervision Department that the alliance standards developed by two local heat pump companies in Shunde could lead to a new reshuffling of production and sales strategies among domestic heat pump manufacturers. According to reports, Shunde-based Changling and Midea, along with four other Chinese companies, have recently introduced the "Air Source Heat Pump Water Heater" Shunde Alliance Standard. These standards will also serve as reference materials for future national industry standards.
**Challenges of an Industry Without Standards**
The heat pump water heater industry emerged in China around the year 2000 and began to grow rapidly at the end of 2003, with both manufacturers and sellers entering a period of fast development. According to the technical director of the South China Institute of Electric Appliances, the domestic heat pump water heater industry has maintained a growth rate of 30-400% annually. In 2008, the market's total output value is expected to reach 10 billion yuan (around 3.5 million units), primarily used in homes, schools, and hospitals.
The booming market attracted numerous companies. In 2006 alone, nearly 200 companies in Shunde aimed to enter the sector. Currently, there are about 10 companies producing heat pump water heaters in the area. After a surge in 2004, the market continued to expand in 2007. According to data from industry insiders, the total sales of the Chinese heat pump water heater industry reached approximately 600 million yuan in 2006, with estimates suggesting it would rise to between 700 million and 1 billion yuan in 2007, representing a 10% annual growth rate.
However, this rapid expansion brought chaos. Cai Lingming, general manager of Changling, stated that many "screw factories" were operating in the industry—companies that only needed a screwdriver to assemble products. This led to poor product quality and performance, eroding consumer trust in the entire heat pump industry. A representative from the South China Institute of Electrical Appliances noted that the lack of standards was the root cause. To date, the industry has no formal regulations, no market access system, or production license requirements, resulting in a low barrier to entry and widespread substandard products.
**A New Era of Production and Competition**
Shunde has become one of the key regions for heat pump water heater manufacturers in China, leading the way in standardization efforts. Since 2006, six companies, including Midea and Changling, have participated in developing the Shunde Alliance Standard. Recently, they released the "Air Source Heat Pump Water Heater" Shunde Alliance Standard, which became the first national coalition standard. The National Standards Committee has since initiated related research, and Changling and Midea have been appointed as deputy group leaders in the national standard drafting working group.
According to interviews, the two Shunde-based heat pump companies recognize the importance of standardization and have developed a strategic approach. They aim to use these standards to guide industrial development, turning chaotic competition into structured rivalry. The shift is expected to move from "price-based quality" to "quality-based pricing." Cai Yuming believes that the introduction of standards will raise industry barriers, promote order, and encourage the departure of small manufacturers lacking core technology.
Currently, the national standard for household and similar-use heat pump water heaters is in its final revision phase. Once issued, the industry will enter a new era of standardization, bringing greater stability and long-term growth.