HAIER SMART HOME(SH:600690) Di Yi Cai Jing·2025-12-25 05:55Core Viewpoint - The Chinese home appliance industry is experiencing fluctuations in exports due to changing tariffs, but China remains a dominant manufacturing and exporting country, with brands continuing to expand globally despite challenges [4]. Group 1: Company Strategies - Leto Electric decided to continue production in China while exploring overseas markets after facing unexpected tariff increases in the U.S. [5] - The company faced challenges with U.S. tariffs exceeding 100%, leading to canceled orders and financial strain, prompting exploration of production in Vietnam and Cambodia [5][6]. - After evaluating production options in Cambodia and Malaysia, Leto ultimately chose to expand its production capacity in China, increasing factory space by one-third [6][10]. Group 2: Industry Trends - Despite tariff disruptions, companies like Leto and Xinbao continue to prioritize domestic production for U.S. orders, with Xinbao expanding its manufacturing base in Indonesia [7]. - Major brands like Haier and Midea are enhancing their overseas production capabilities and focusing on local market engagement through sports marketing and brand interaction [9][10]. - The global home appliance market is projected to grow, with retail volume expected to reach 7.8 billion units and retail value to reach $425 billion by 2028, indicating a compound annual growth rate of 1.8% and 2.5% respectively [9]. Group 3: Market Dynamics - The Chinese home appliance sector is expected to see stable growth in exports, with an estimated 21 million units exported in 2025, despite varying performance across product categories [10]. - Chinese brands are increasingly dominating the global market for robotic vacuum cleaners, capturing 65.7% of the market share [11]. - The trend of Chinese brands transitioning from merely exporting products to establishing a local presence and adapting to market needs is becoming more pronounced [12].