Tai Mei Ti A P P·2025-11-25 11:35Core Viewpoint - The article discusses the competitive dynamics in the domestic air conditioning market, particularly focusing on the conflict between Midea Group and Xiaomi, highlighting Midea's recent actions against Xiaomi's service providers as a response to Xiaomi's rapid growth in the air conditioning sector [1][5]. Group 1: Midea's Actions and Market Dynamics - Midea Group has reportedly instructed its nationwide service providers to stop servicing Xiaomi and Gree, primarily targeting Xiaomi due to its immature service system in the air conditioning sector [1][5]. - The competitive landscape is described as a "Three Kingdoms" battle, with Midea facing pressure from Xiaomi's rapid market expansion and Gree's established presence [1][11]. - Midea's decision to cut ties with Xiaomi's service providers is seen as a strategic move to protect its market share and service network, which is crucial for maintaining its competitive edge [6][7]. Group 2: Xiaomi's Growth and Market Strategy - Xiaomi's air conditioning sales have surged, with a reported shipment of over 4.4 million units in 2023, marking a 49% year-on-year increase, and projections of reaching 6.8 million units in 2024 [5][6]. - The company has adopted a direct sales model, significantly reducing prices and increasing its market share, which poses a direct threat to Midea's traditional distribution channels [6][11]. - Xiaomi's strategy includes building its own supply chain and leveraging its ecosystem to integrate various smart home devices, which could disrupt Midea's traditional business model [6][11]. Group 3: Historical Context and Strategic Partnerships - The relationship between Midea and Xiaomi began in 2014 with a strategic partnership that aimed to combine Midea's manufacturing capabilities with Xiaomi's smart technology [2][3]. - Initial collaborations, such as the "i-Youth smart air conditioner," faced challenges due to misaligned strategic priorities and brand positioning conflicts [3][4]. - The turning point came in 2018 when Xiaomi launched its "Mijia Internet Air Conditioner," which directly targeted Midea's market segment, leading to a significant shift in market dynamics [4][5]. Group 4: Future Outlook and Industry Implications - The ongoing competition is expected to lead to a prolonged battle for market dominance, with Midea tightening its distribution channels as a defensive strategy against Xiaomi's aggressive pricing and market penetration [11][12]. - The article suggests that the traditional manufacturing industry is facing a critical transformation due to the disruptive influence of internet companies like Xiaomi, which challenges established business models [13][14]. - The outcome of this competitive struggle will likely reshape the air conditioning market and influence the broader home appliance industry [12][14].