XIAOMI(HK:01810) Guan Cha Zhe Wang·2025-10-30 10:53Group 1: Xiaomi's Brand Premiumization Strategy - Xiaomi's brand premiumization is evident, starting from mobile phones in 2020 to the recent launch of its smart home appliances and SU7 cars, indicating a systematic approach to enhancing brand value [1][3] - The newly established smart home appliance factory in Wuhan, with an investment of 2.5 billion yuan, marks a shift from reliance on OEM to self-research and production, which is crucial for Xiaomi's capability building [3][6] - The factory boasts a production speed of one high-end air conditioner every 6.5 seconds and a first-pass yield rate exceeding 99%, showcasing advanced manufacturing capabilities [3][6] Group 2: Growth and Market Position - Xiaomi's smart home appliance revenue surged by 66.2% year-on-year in Q2 2025, with air conditioner shipments exceeding 5.4 million units, reflecting a strong market presence [6][8] - The company aims to achieve a revenue target of 100 billion yuan in its home appliance business within five years, positioning its air conditioning segment among the top two in China [6][13] - Xiaomi's rapid factory construction and production capabilities are transforming it from a market challenger to a leader in the home appliance sector [6][13] Group 3: Strategic Responses to Industry Challenges - Xiaomi's approach to the current price war in the industry emphasizes contributing to the industry rather than engaging in destructive price competition, aligning with its premiumization strategy [7][8] - The company has maintained its technological investments despite the competitive pricing environment, indicating a commitment to quality and innovation [7][8] Group 4: Ecosystem as a Competitive Advantage - Xiaomi's unique "people-car-home" ecosystem is a significant competitive advantage, making it a formidable player in the smart home market [9][10] - The integration of smart appliances with other Xiaomi products enhances their appeal, aligning with the growing trend towards smart interconnected devices [11][13] - The establishment of a comprehensive industrial ecosystem in Wuhan, including a global headquarters and R&D center, supports Xiaomi's ambition to dominate the smart home appliance market [13]