Anti-drip law a boon for air conditioner makers

A government decision to fine households whose air conditioners drip water has boosted sales in air conditioners, according to retailers and company executives.

Promotions of the home appliances starting in February and the recent high temperatures have also resulted in a rising number of units sold, they said.

Starting June 1, the Cabinet-level Environmental Protection Administration (EPA) will use Article 27 and Article 50 of the Waste Disposal Act (廢棄物清理法) to impose fines of between NT$1,200 and NT$6,000 on violators if their air conditioners are found to drip water, which is deemed as pollution.

Kolin Co (歌林), a leading manufacturer of consumer electronics, has extensively run television commercials this year to promote the nation's only drip-free models, aiming to tap the market when consumers mull buying a new AC unit.

"The [government's] order has really helped push up sales of our patent model," said Kolin manager Steven Chen (陳世明).

Chen said Kolin's drip-free window-mount models were selling at a rate 60 percent higher than the same period last year.

Around 1 million air conditioners are sold in the nation per year, Chen said.

Tsann Kuen Group (燦坤實業), the nation's largest electronics chain store in terms of sales, also saw Kolin's market presence growing in their outlets.

Chang Yueh-lung (張岳龍), the group's assistant manager of merchandise planning, said sales of Kolin's air conditioners rose 3 to 4 percent from last year, partly thanks to the EPA's order.

But another retailer denied the connection, saying that it was not the decisive factor in boosting sales.

"Boosted by various kinds of promotional activities -- from installment payments, free installation to prolonged guarantees -- all the well-known air conditioner brands have been selling well," said Sarah Wu (吳明君), a corporate affairs manager at the UK-based Tesco Stores Co Taiwan (特易購).

Wu said all the air conditioners can be made drip-free, as long as they are installed properly and connected to a run-off pipe, and therefore not all the orders have to be placed with Kolin's products.

Joanna Lee (李嘉惠), the marketing manager of LG Taistar Electronics Taiwan Co, agreed, saying that a conspicuous drawback has been detected in the drip-free models manufactured by their major rival.

Since fans have to be installed inside to evaporate water condensation, a lot of noise is caused, which is more difficult to resolve than dripping.

"Therefore, I don't see that Kolin's products especially outshine others," she said.