Record of the Aquatherm Moscow international online conference "Asian and Russian HVAC/R market"

On November 17, Aquatherm Moscow, the largest in Russia and Eastern Europe international exhibition for HVAC/R and water supply industry, successfully ran its second international online conference "Asian and Russian HVAC/R market: current state, prospects and ways to enter the Russian market".

The online conference ran in English in a unique LIVE format and gathered 6 international experts and 60 registered listeners from 21 countries.

Speakers of the online conference were HVAC/R industry and business experts from Russia and China such as:

  • Cheng Jianhong, Researcher, China National Institute of Standardization
  • YANG Run, Product Director of Heating Department, Beijing Zhixindao Sci-Tech Corp., ltd
  • WANG Xiujun, Senior Researcher of Project Department Beijing Zhixindao Sci-Tech Corp., ltd
  • Georgy Litvinchuk, Russian VAC/R market expert, Founder & Director of the Litvinchuk Marketing company
  • Leila Pavlova, Business consultant: strategic marketing, anti-crisis management of the commercial sector. International purchases. Product development and private label
  • Wang Ruonan, Deputy Director of Technical & Standard Dept. China Refrigeration and Air-conditioning Industry Association

The online conference was opened by introductory speech of Aquatherm Moscow exhibition directors – Elena Zelenina and Olga Egorova.

Olga Egorova presented special AirVent section for VACR equipment at Aquatherm Moscow and explained why Aquatherm Moscow is one of the most efficient ways to enter the Russian market.

Elena Zelenina presented completely new remote exhibiting program for internationals, which let companies from all over the world exhibit at onsite Aquatherm Moscow show on February 2-5,2021 even if they can’t come to Russia due to travel restrictions. Remote exhibiting program has 3 different packages with prices from 900 to 4 000 euro.

Package 1 provides international companies with online coverage and ensures online presence in Exhibitor Directory and visitors’ emails, high visibility in exhibitors’ online and print listings, access to Aquatherm Click innovative mobile app, giving a possibility to get new leads and negotiate with Russian buyers in a convenient messenger.

Package 2 supplies international companies with online coverage + onsite presence in the remote participation area in the exhibition hall. The remote exhibitor will be advertised on the wall panel, get contacts of show visitors and distribute ad materials with the help of Aquatherm Moscow staff.

Package 3 provides international companies with online coverage + onsite presence in the remote participation area in the exhibition hall + video calls with show visitors. Aquatherm Moscow staff will present the company to show visitors at workplace at the venue, collect their contacts and organise video negotiations with the Russian buyers.

After that, Ms Liu Xiaohong, Deputy secretary general, CRAA told online conference listeners about China Refrigeration and Air-Conditioning Industry Association – national non-profit industrial organization mainly representing refrigeration and air-conditioning manufacturers, and research, design institutes and academies as well, with the principal of voluntarily participation. CRAA is a major voice for the whole industry and works for members’ mutual interests and benefits.

Mr Cheng Jianhong, Researcher, China National Institute of Standardization introduced energy saving regulations and standards development of VAC/R industry in China. According to his report, in recently years a new policy and promotion measures were created to strive to reach the peak by 2030 and achieve carbon neutrality by 2060.

“To meet carbon neutral target, we have to make a few important technological passes: develop high efficient products, electrification and multi-energy system. According to Green and High Efficiency Cooling Plan, the market share of room air conditioners should be improved by 30%, the share of multi-connected air conditioner – by 40%, share of green and high-efficient refrigeration products increased by 20% by 2022”.

The researcher drew special attention to the fact that there is also a tendency to replace traditional heating systems with heat pumps in China to protect the environment. The refrigerants substitution is also noticed in China in accordance with the Kigali Agreement:

Mr Cheng Jianhong also covered such topic as Green finance development in China:

“As you know, manufacturing of energy saving products needs more money as the cost of elements is high, and the government and financial departments help companies to reduce costs with the help of Green Finance Regulations and set up the carbon’s trading system”.

Mr Georgy Litvinchuk presented the Russian VAC/R market:

“The year 2020 was a difficult year in the global climate industry, the global sales went down. The situation in Russia differs from the rest of the world, as disregarding the COVID-19 pandemic, we have the sales growth. The Russian market of split systems grew from 1 930 000 to 2 100 000 items. First of all, such growth is caused by the delayed demand from the previous year (due to the cold weather conditions in 2019 the sales were not high) and the necessity to replace air conditioners which were installed 12-15 years ago.”

Mr Georgy Litvinchuk explained why replacement of VAC/R systems mainly increases sales of such equipment and expressed his professional opinion on positive prospects of the Russian VAC/R market.

“We expect the Russian market to keep growing due to replacement within 3 or more years and reach volume of 2,5-2,7 million items a year. So disregarding political and economical situation in Russia, COVID-19, etc. we are looking into the future with moderate optimism.”

The Russian expert shared key requirements and preferences in VAC/R systems of the Russian buyers:

“The economic situation influences the choice of air conditioner type by Russian buyers. People are buying cheap air conditioners, the share of cheap ones is growing faster. In Russia unlike the rest of Europe the share of Japanese and Korean equipment is pretty low: the Japanese split systems made only 5,3% of the market, Korean – 1,5%, all the rest was manufactured in China. If we divide Russian customers by the age group the ones interested in a good brand are usually aged over 50. Peoople aged 20-25 pay no attention to the brand name of their air conditioner.”

Ms YANG Run, Product Director of Heating Department, Beijing Zhixindao Sci-Tech Corp. together with Ms WANG Xiujun, Senior Researcher of Project Department Beijing Zhixindao Sci-Tech Corp., ltd presented current Situation and Development of ASHP Industry in China:

“The current situation at the at export market is a surprise for us. Sales of air source heat pumps performed very well. We would never think that the global pandemic will cause the rapid growth of aerosol heat pump in export market. The share of retail air-to-water heat pumps has already close to 70%. Although the pandemic brought a serious impact, retail air-to-water heat pumps maintain a growth of more than 30% since 2018. The domestic and export market of aerosol heat pumps will present a stable development in 2021.”

Leyla Pavlova, Russian business consultant, introduced a few important tips on entering Russian market. She emphasized the fact that teamwork, strategy and communication are 3 whales which are the basis of success on international market. Leyla marked that, first of all, it is crucial to explore the market, find out key market players with the help of exhibitors list on Aquatherm Moscow website, prepare the list of exhibitions in the country where you’d like to develop your business. The next step is to create profiles in social media and make the first post not about the company and its products but about company’s team – it will attract people and create a strong personal association with the brand. Exploring industry media, Aquatherm Moscow website is also important to understand supply and demand on the market and learn interesting facts, trends and latest tendencies.

Ms. Wang Ruonan, Deputy Director of Technical & Standard Dept. CRAA introduced HCFCs Phase-out progress and alternatives in China VAC/R industry”.

As Ms. Wang Ruonan reported, according to CRAA statistics, gross industrial output value of China’s R&AC industry in 2019 exceeded 695 billion RMB. Current market trends in China are variety of equipment, high quality, energy saving and environment friendly. Ms Wang Ruonan marked that in 2020 China has updated the second-stage industry plan for 2021-2026, which aims to phase out 67,5% of the baseline till 2026, which is 15205,64 tons HCFCsdurinf 2021-2026. The expert from the CRAA association even presented the table of alternative refrigerants which may be used instead of HFCs.

As the official organiser of the international online conferences, Aquatherm Moscow exhibition thanks for help with the organization China Refrigeration and Air Conditioning Industry Association (CRAA) and looks forward to meet you at our new online  and onsite events.