Carrier Corporation, the world's largest provider of heating, ventilation, air conditioning and refrigeration products and services, has opened its first Totaline shop in Beijing.

The Totaline flagship store is part of efforts to help Carrier's parts distribution system expand in China.

Set up in 1983, Totaline is a subsidiary brand with a well-developed supply network of more than 800 stores in over 80 countries and regions.

"Totaline is a new business model in the air conditioning parts market in China, which lacks big and quality-guaranteed parts retailers," said Wang Tao, director of the Totaline parts division at Carrier China.

The store will supply air conditioning parts with various brands such as Carrier, Totaline and other big companies like Honeywell and DuPont. Major clients include commercial air-conditioning installation, maintenance and repair companies as well as end-users of commercial air-conditioners such as factories.

A mature market and change in government policy are behind Totaline's entry into the Chinese market now. Carrier has been in China for almost two decades, according to Wang.

In accordance with its WTO commitments, China fully opened its retail sector to foreign competitors in December 2004. It abolished joint-venture requirements and restrictions on the location and number of foreign-funded stores, according to the policy change mentioned by Wang.

He said China's air-conditioning market is at a turning point.

"The after-sales market will become important in terms of service and the supply of parts," Wang said.

The air-conditioning market has been developing in China for two decades but such high demand for new air-conditioners cannot continue, although the need for maintenance is expected to surge.

Carrier plans to increase the Totaline network aggressively, covering around 20 major cities in China this year, said Wang.

He said the opening of Totaline's Beijing store was just the start.

Carrier has planted air conditioners in many buildings in China, including the Great Hall of the People in Beijing, the Oriental Pearl Television Tower and Pudong Jinmao Tower in Shanghai, the Olympic Stadium in Guangzhou and the Shaanxi History Museum in Xi'an.

According to Wang, Carrier will team up with suppliers for many parts and offer them through its China-wide store network.

It will also give feedback to upstream partners, assisting them with inventory management and the development of new products.

Carrier is part of United Technologies, a Hartford, Connecticut-based provider of high-technology products and support services to the aerospace and building systems industries.

(China Daily 03/29/2006 page10)