Sou Hu Cai Jing·2025-08-24 13:34Core Insights - The Chinese home appliance market is undergoing significant transformation, with a 9.2% year-on-year growth in retail sales in the first half of 2025, driven by the "trade-in" policy and changing consumer preferences for quality [2][4] - Gree Electric Appliances is experiencing a notable decline in performance, with a 7.26% drop in annual revenue for 2024, marking its first revenue decrease in four years [4][26] - Xiaomi has emerged as a major player, achieving over 113% growth in its smart home appliance business in Q1 2025, surpassing Gree in online air conditioning market share by July 2025 [18][19] Group 1: Midea's Stability - Midea Group has maintained strong performance, exceeding market expectations in Q1 2025 with revenue and profit growth, holding the top market share across nine product categories [2][4] - Midea's success is attributed to its strategic acquisition of KUKA in 2017, which revolutionized its quality management and manufacturing processes [5][6] - The company has invested over 100 billion yuan in R&D over the past decade, with 16 billion yuan in 2024 alone, resulting in over 150,000 patent applications globally [8][9][10] Group 2: Service Excellence - Midea has developed a comprehensive DTC digital system to enhance service efficiency, reducing the average order-to-delivery time from 21 days to 12.5 days [13][14] - The company has established over 6,000 service points and employs 190,000 certified engineers, ensuring nationwide coverage and rapid response times [15][16] - Midea's service policies, including a 7-day return and 365-day exchange for small appliances, reflect its commitment to customer satisfaction and confidence in product quality [17][16] Group 3: Xiaomi's Rapid Growth - Xiaomi's strategy involves mimicking top global designs, leveraging China's supply chain, and offering competitive pricing, leading to rapid market penetration [19][20][21] - However, this approach may limit long-term innovation and technological advancement, as it primarily focuses on cost-effectiveness rather than original R&D [23][24] - The challenge for Xiaomi will be to transition from a price-driven model to one that emphasizes core technology and quality to sustain its market position [24][30] Group 4: Gree's Challenges - Gree's reliance on a single product category, particularly air conditioning, has led to its revenue decline, with nearly 80% of its total revenue coming from consumer appliances [26][27] - The company has struggled with diversification and global expansion, with only 14.91% of its revenue coming from overseas markets in 2024 [26] - Gree's situation serves as a cautionary tale for other players in the industry, highlighting the need for adaptability and innovation in a rapidly changing market [26][31]