Group 1 - The 2025 Tmall Double 11 sales event saw a rapid increase in brand performance, with 80 brands achieving over 100 million in sales within the first hour, and 30,516 brands doubling their sales compared to last year [1] - Beauty brands led the sales surge, with Polaia breaking 100 million in just 6 minutes, followed by other major brands like Estée Lauder and SK-II achieving significant sales growth within the first hour [1] - Sports and outdoor brands also experienced explosive growth, with Fila, Nike, and Lululemon each surpassing 100 million in sales within the first 15 minutes, and several brands achieving double-digit growth compared to last year [1] Group 2 - The combination of national subsidies and Tmall Double 11 discounts, with prices dropping to as low as 50%, led to a significant increase in sales for home appliance and home improvement brands, with Haier and Midea quickly surpassing 100 million in sales [2] - The launch of the iPhone 17 series on Tmall resulted in explosive sales, with Apple Store's iPhone series exceeding last year's total sales within the first two hours of the event [2] - Live streaming sales also performed well, with several popular hosts achieving over 100 million in sales during the first hour, surpassing the number of hosts who reached this milestone last year [2]

Market Overview - The white goods sector increased by 0.46% on October 20, with Aucma leading the gains [1] - The Shanghai Composite Index closed at 3863.89, up 0.63%, while the Shenzhen Component Index closed at 12813.21, up 0.98% [1] Stock Performance - Aucma (600336) closed at 7.00, up 2.79% with a trading volume of 135,200 shares and a turnover of 93.40 million yuan [1] - Gree Electric (000651) closed at 40.77, up 1.37% with a trading volume of 394,700 shares [1] - Haier Smart Home (600690) closed at 25.09, up 0.28% with a trading volume of 324,100 shares [1] - Midea Group (000333) closed at 72.87, up 0.10% with a trading volume of 297,600 shares [1] Capital Flow - The white goods sector saw a net inflow of 307 million yuan from institutional investors, while retail investors experienced a net outflow of 100 million yuan [1] - Gree Electric had a net inflow of 202 million yuan from institutional investors, but a net outflow of 45.90 million yuan from retail investors [2] - Haier Smart Home experienced a net inflow of 49.28 million yuan from institutional investors, with a net outflow of 54.37 million yuan from retail investors [2]

Investment Rating - The report maintains an "Outperform" rating for the home appliance industry [5][6]. Core Views - The home appliance sector is experiencing a mixed performance, with major appliances under pressure due to high base effects from last year, while small appliances continue to show growth. The upcoming Double Eleven shopping festival is expected to further boost sales in small appliances [1][12]. - The export value of home appliances in September saw a decline of 9.6%, with air conditioning exports particularly affected, while refrigerators and washing machines showed positive growth [3][40]. - The report highlights the resilience of the home appliance sector despite external challenges, with expectations for continued growth potential in overseas markets as companies expand their global presence [12][40]. Summary by Sections 1. Investment Rating - The home appliance industry is rated as "Outperform" [5]. 2. Market Performance - In September, retail sales of major appliances declined by approximately 20% due to high base effects, while small appliances like rice cookers and air fryers saw growth of 6.1% and 27.7% respectively [1][18]. - The Double Eleven shopping festival has been extended, allowing consumers more time to make purchases, which is expected to benefit sales [2][36]. 3. Export Performance - Home appliance exports fell by 9.6% in September, with air conditioning exports down 23.2%. However, washing machines and vacuum cleaners continued to grow by over 10% [3][40]. - The report notes that the actual overseas sales performance may be better than export figures suggest, as companies are diversifying their production and sales channels [40]. 4. Key Company Recommendations - Recommended companies include Midea Group, Gree Electric Appliances, Haier Smart Home, and TCL for white goods; Boss Electric for kitchen appliances; and Roborock and Ecovacs for small appliances [4][12][13].

Core Insights - Haier and AQUA brands won the 2025 Good Design Award in Japan, showcasing their localized innovation capabilities and the advantages of their dual-brand strategy [1][4] Product Highlights - The Haier Milaly 26L microwave oven addresses the challenges of small kitchen spaces and "cooking fatigue" in urban Japanese households with its handle-less design and "wall-fit design" [3] - The "invisible UI" design enhances the aesthetic by hiding the control interface when not in use, while the intelligent combination of a ceramic turntable and dedicated grill allows for automatic switching between microwave and oven modes [3] - The AQUA AQM-KF20 microwave focuses on the needs of single-person households, featuring a 20L capacity and compact size, with a handle-less design that optimizes space utilization [3] - It includes high-performance infrared sensors and one-touch functions for "automatic heating," "frozen food heating," and "10-second quick heating," catering to the habits of single-person users [3] Market Position - Haier and AQUA have previously won multiple awards for their refrigerators, freezers, and washing machines, establishing a leading position in the dual-brand cold appliance market [4] - The recent awards in the small appliance category confirm their ongoing breakthroughs in the Japanese market, from core categories to niche segments [4] - Haier Japan plans to continue understanding local user pain points and leveraging its dual-brand strategy to meet diverse consumer needs, aiming to lead the development direction of the Japanese home appliance market [4]

Core Insights - The Southeast Asian market is projected to become a trillion-dollar market, driven by a young population, high birth rates, and low household appliance penetration compared to China [3][5] - Chinese brands are increasingly dominating the Southeast Asian market, with their sales growing at an annual rate of 20%-30%, currently accounting for 30%-40% of the market share [5][8] - There is a strong desire among Southeast Asian retailers to collaborate with Chinese brands, particularly in the areas of smart home technology and energy-efficient products [5][6] Group 1: Market Potential - Southeast Asia's household appliance ownership is low, with less than 100 units per 100 households, indicating significant growth potential [3] - The market size for home appliances and consumer electronics in Southeast Asia is expected to reach nearly $100 billion in 2024 and could exceed $120 billion by 2030, with a compound annual growth rate of 4.56% projected to reach $150 billion by 2035 [3][5] Group 2: Chinese Brand Positioning - Chinese brands like Haier, Hisense, TCL, and Midea have rapidly developed in Malaysia, with their products now accounting for about 50% of local sales [5][6] - The competitive landscape in Southeast Asia is characterized by a "three-way split" among Chinese, Korean, and Japanese brands, with Chinese brands expected to further increase their market share [7][8] Group 3: Collaboration Opportunities - Southeast Asian retailers express a strong interest in collaborating with Chinese suppliers to expand into other overseas markets, emphasizing the need for understanding local market rules [5][6] - There is a call for Chinese companies to enhance their local presence and adapt their products to meet specific regional needs, such as cooling requirements for refrigerators and washing machine capacities [10][11] Group 4: Strategic Recommendations - Companies are advised to avoid misconceptions about the Southeast Asian market, recognizing the presence of established local and international competitors [10] - A focus on building strong local teams and partnerships with local distributors is essential for successful market penetration [10] - Companies should also be mindful of the diverse needs across the ten ASEAN countries, requiring tailored strategies for each market [10]

Core Insights - Over 70% of household air conditioning purchases in Europe are influenced by recommendations from installers, highlighting the importance of installation efficiency, ease of cleaning, and maintenance in overseas markets [1][2] - Haier Air Conditioning showcased its innovative "easy installation, easy disassembly, easy cleaning" service solution at the 138th Canton Fair, providing new options for overseas users [1] Product Features - The modular design is the core breakthrough of the "three-easy" solution, with the Expert series featuring standardized interfaces and pre-assembled components, which reduce installation time by approximately 50% compared to traditional products [1] - The detachable structure addresses cleaning and maintenance challenges, allowing users to easily remove key components for thorough cleaning, thus preventing odors and bacteria growth [1] Market Performance - According to 2024 sales data, Haier Air Conditioning maintains a leading position in several overseas markets, including being the top brand in Pakistan for 17 consecutive years and leading in Italy and Spain [2] - Haier has achieved the highest sales in the global market for home air conditioning brands, particularly excelling in the fields of internet-connected air conditioning and self-cleaning air conditioning [2] Strategic Approach - The shift in global home appliance market competition from single-function innovation to system solution competition is evident, with Haier's "three-easy" service solution reflecting comprehensive consideration from product design to service experience [2] - Haier's specialized training for installers enhances channel recognition and trust in the product's user-friendly design, demonstrating a service-oriented product mindset tailored to regional needs [1]

Core Viewpoint - Hong Kong technology stocks opened significantly higher, with the Hang Seng Technology Index rising nearly 4% [1] Group 1: Stock Performance - NetEase surged over 6% [1] - Ctrip Group, Baidu Group, and JD Group each increased by over 5% [1] - ASMPT, Alibaba, JD Health, Sunny Optical, NIO, Kuaishou, Haier Smart Home, and Bilibili all rose by over 4% [1] - SMIC, Hua Hong Semiconductor, Kingdee International, SenseTime, Horizon Robotics, Xpeng Motors, Meituan, BYD Electronics, Alibaba Health increased by over 3% [1] - Tencent saw a rise of 2.6% [1]

Core Viewpoint - Shandong province is establishing a platform for the supply and demand of elderly-friendly products, aiming to promote the development of innovative products with health monitoring and interaction features, benefiting both the elderly and enterprises [1] Group 1: Industry Development - Shandong is focusing on the development of the elderly products industry, leveraging the growing consumer demand among the elderly [1] - The province is encouraging companies in textiles, furniture, home appliances, medical devices, and robotics to accelerate the development of elderly-friendly products [1] - A total of 119 products have been included in the Ministry of Industry and Information Technology's promotion directory for elderly products, ranking second nationally [1] Group 2: Furniture Manufacturing - The furniture manufacturing industry is a traditional strength of Shandong and is a key area for developing light industry [1] - The provincial government is supporting companies to explore new markets for elderly-friendly products through the "chain leader" mechanism [1] - Notable companies such as Shandong Bangjie and Puzhe Health are accelerating their development in elderly-friendly furniture, with major brands like Haier and Wanhuan also entering this sector [1]

Summary of Key Points from the Conference Call Industry Overview - The report analyzes brand mind-share in the Chinese consumer market using Baidu search data, which holds a nearly 70% market share in web searches in China. This analysis provides insights into consumer interest and potential market-share movements [1][2][3]. E-Commerce Sector - **Alibaba** regained the top position with a 4% quarter-over-quarter (QoQ) increase, attributed to online delivery initiatives and the launch of an open-source AI agent [2][14]. - **JD.com** fell to second place with a 10% QoQ decline in search hits [2][14]. - **Pinduoduo**, **Ctrip**, and **VIP.com** ranked third, fourth, and fifth, with respective increases of 1%, 7%, and 7% in search hits QoQ [2][14]. IP & Pop Toys - **Pop Mart** maintained its top position despite a 64% QoQ decline in search hits, influenced by a high base from the previous quarter [5]. - The overall sector saw a 48% QoQ decrease in hits but a 12% year-over-year (YoY) increase [5]. Apparel Sector - The sportswear segment experienced a 13% QoQ decline in hits, with **Arc'teryx** rising to first place (+30%) due to a controversial marketing campaign [3]. - **Nike** dropped to third place with a 26% decline in hits, while **Adidas** remained second with a 17% decline [3]. Restaurant & Food Retailers - Restaurant search hits were flat QoQ (-1%) and down 22% YoY. The rankings remained unchanged with **KFC** and **McDonald's** in the top two positions, both experiencing a 4% decline in hits [4]. - Freshly-made drinks saw an 8% QoQ decline and a 48% YoY decline, with **Mixue** rising to first place (+75% QoQ) due to collaborations and brand ambassador appointments [4]. Soft Drinks and Dairy - The soft drinks sector saw an 18% QoQ increase in hits, with **Wahaha** overtaking **Coca-Cola** to become the top brand (+101% QoQ) [11]. - Dairy products also experienced a 25% QoQ increase in hits, with **Wahaha** leading the category [11]. Home Appliances - The home appliance sector saw a 2% QoQ decline in hits, with **Midea** remaining the top brand (+7% QoQ) [10]. Luxury Goods - The luxury goods sector experienced a 9% QoQ decline in hits, with **Louis Vuitton**, **Chanel**, and **Dior** maintaining the top three positions [13]. Automotive Sector - The luxury automotive segment saw a 10% QoQ decline, while electric vehicles (EVs) experienced a 3% increase. **Audi** remained the top luxury auto brand with a 3% increase in hits [15]. Mobile Search Trends - Mobile search queries accounted for 70% of total search queries, indicating a stable trend in mobile penetration across various categories [16]. Brand Rankings - The top searched brands across various categories remained largely stable, with notable mentions including **Cartier** in jewelry, **Wuliangye** in spirits, and **Arc'teryx** in sportswear [8][17]. Conclusion - The analysis highlights the dynamic nature of the Chinese consumer market, with significant shifts in brand rankings and consumer preferences across various sectors. The data from Baidu searches serves as a valuable indicator of brand strength and market trends [1][2][3].

Summary of Key Points from the Conference Call Industry Overview - The home appliance industry is experiencing a shift in competition dynamics, particularly in the white goods sector, with a notable increase in the proportion of mid-to-high-end consumption driven by national subsidies [1][2][4] - Price competition for flow models has eased, returning to levels seen in April, likely due to the seasonal decline in air conditioning demand [1][2][4] - Consumer demand is currently weak, with a notable impact from the expiration of subsidies in various regions, particularly in the southwest and eastern areas of China [2][3] Company Performance Midea Group - Midea's revenue growth is expected to be in the high single digits, around 10%, but profit growth may lag due to the consolidation of assets [1][6] - The company demonstrates strong operational resilience, effectively managing inventory to adjust to market conditions [6] Haier - Haier's revenue growth is projected at 7%-8%, with double-digit profit growth anticipated due to channel reforms and reduced expense ratios [1][7] - The Casarte brand continues to perform well under national subsidy policies, contributing positively to profitability [7] Hisense - Hisense is expected to see slight increases in both revenue and profit, although its central air conditioning business faces challenges [1][8] - The company has experienced a rebound in installation card growth since July, indicating a stabilization in price competition [2][4] TCL - TCL's revenue is expected to remain flat compared to last year, with profit also stabilizing due to high base effects from the previous year [1][9] Hailong Cold Chain - Hailong Cold Chain's revenue is expected to match the first half of 2025, with strong growth in refrigeration and exports [1][10] Market Dynamics Mini LED Technology - The penetration rate of Mini LED technology has slightly decreased, influenced by subsidy reductions and cost adjustments in electronic modules [1][11] - Despite this, product iterations are expected to support higher selling prices [11] Small Appliances - The small appliance sector is witnessing significant growth, particularly in cleaning devices like robotic vacuums, with companies like Stone Technology reporting an 80% revenue growth and a 50% profit increase [1][14] - The kitchen small appliance market remains stable, with companies like Bear Electric projecting a 13% revenue increase, while New Bao is expected to face negative growth [1][15][16] Export Market - The export market is experiencing volatility, particularly in Europe and Latin America, with the latter entering its peak air conditioning sales season [3][5] - Chinese companies are shifting production to countries like Egypt and Thailand to mitigate tariff pressures [3][5] Future Outlook - The small appliance industry is expected to continue evolving, focusing on cost control and innovation to drive growth [1][17] - New product categories, such as washing robots, are anticipated to become significant growth drivers [17]