Core Viewpoint - The ongoing competition between Xiaomi and Gree has inadvertently harmed Haier, which is losing market share in the air conditioning sector as Xiaomi's online sales surpass Gree's [2][3] Group 1: Market Share Dynamics - In July, Xiaomi's air conditioning online market share surpassed Gree's, with Xiaomi holding 15.07% of the online market by August 17, while Haier's share was only 7% [2] - Xiaomi's air conditioning shipments exceeded 6.8 million units in the previous year, showing a year-on-year growth of over 50%, while Haier's air conditioning revenue for 2024 was approximately 49.1 billion yuan, with a growth of only 7.4% [2] Group 2: Competitive Landscape - Haier, which has been in the air conditioning market since the 1980s, is now facing significant competition from Xiaomi, a newer entrant that began its air conditioning collaboration with Midea in 2015 [2] - The second quarter of this year saw Xiaomi's major appliances achieving high double-digit growth, while Haier's performance remains uncertain as it has not yet disclosed its latest earnings [2][3] Group 3: Strategic Responses - Haier's CEO, Zhou Yunjie, has attempted to leverage social media to boost the brand's visibility, but the ongoing market dynamics suggest that without significant changes, Haier may continue to lose ground to Xiaomi [3] - Xiaomi's advantage lies in the smart home appliance trend, which presents both an opportunity and a competitive edge for the company [3]

Core Insights - Xiaomi Group reported record high revenue and net profit for Q2, achieving revenue of 116 billion yuan, a year-on-year increase of 30.5%, and an adjusted net profit of 10.8 billion yuan, up 75.4% [2] Smartphone Business - Despite a challenging global smartphone market, Xiaomi's smartphone business saw significant growth, with 11.5 million new device activations in Q2, capturing a 16.8% market share in China, ranking first [2] - Xiaomi aims to maintain its annual smartphone shipment target at approximately 175 million units, focusing on increasing average selling price (ASP) and market share in China by 1 percentage point each year [2][3] Automotive Sector - Xiaomi's smart electric vehicle and AI innovation segment generated over 20 billion yuan in revenue, entering a phase of rapid growth, with Q2 vehicle deliveries reaching 81,302 units, totaling over 300,000 cumulative deliveries by July 10 [3] - The company is committed to avoiding price wars in the competitive electric vehicle market, prioritizing order fulfillment and aiming for profitability in the second half of the year [3] Home Appliances - In the home appliance sector, Xiaomi achieved "volume and price increase" amidst fierce competition, leveraging its advantages in smart home technology and user-centric innovation to transform the traditional appliance market [4]

Core Viewpoint - Gree Electric Appliances maintains its leading position in the online air conditioning market for July, despite claims from Xiaomi that it surpassed Gree's sales [1][4]. Group 1: Company Responses - Gree's marketing director, Zhu Lei, stated that the online sales data circulating on social media does not match the findings from Aowei Cloud Network, which shows Gree ranked second and Xiaomi third in July [4][6]. - Zhu emphasized that Gree has maintained the highest customer satisfaction for 16 consecutive years, according to the China Standardization Research Institute [6]. Group 2: Xiaomi's Position - Xiaomi's executives, including President Lu Weibing, acknowledged the growth in their air conditioning sales, citing a 53.9% year-on-year increase, and emphasized the importance of innovation in the traditional home appliance sector [9][15]. - Lu Weibing also welcomed other appliance brands to join Xiaomi's ecosystem to accelerate the smart home appliance trend [12][9]. Group 3: Market Dynamics - The competition between Gree and Xiaomi in the air conditioning sector has been ongoing, with both companies frequently exchanging remarks about their market positions [14]. - Xiaomi has been expanding its production capabilities, with a new smart appliance factory in Wuhan set to begin large-scale production by the end of the year [15][16].

Core Viewpoint - The competition between Gree and Xiaomi in the air conditioning market has intensified, with Gree asserting its online sales leadership despite claims from Xiaomi that it surpassed Gree in July [1][4]. Group 1: Gree's Response - Gree's market director, Zhu Lei, stated that Gree maintained its leading position in the online market for July, countering claims made by Xiaomi [4][3]. - Zhu Lei provided evidence from Aowei Cloud Network, showing discrepancies between the online rankings circulated on social media and his own findings, which indicated Gree ranked second and Xiaomi third [4][8]. - Gree has been recognized for its customer satisfaction, having ranked first for 16 consecutive years according to the China Standardization Research Institute [8]. Group 2: Xiaomi's Position - Xiaomi's executives, including President Lu Weibing, acknowledged the growth of Xiaomi's air conditioning sales, citing a 53.9% year-on-year increase, emphasizing the importance of innovation in the traditional home appliance sector [9][14]. - Lu Weibing expressed gratitude for consumer support and highlighted the need for continuous improvement and innovation to transform the competitive landscape [9][14]. - Xiaomi's first-quarter financial report indicated a significant growth in its smart home appliance business, with air conditioning shipments exceeding 1.1 million units, reflecting a year-on-year growth of over 65% [14]. Group 3: Industry Dynamics - The air conditioning sector has seen ongoing rivalry, with Gree and Xiaomi frequently exchanging barbs regarding market leadership and product quality [12][13]. - Gree's CEO, Dong Mingzhu, has previously criticized Xiaomi's claims of being number one, questioning the authenticity of their products and emphasizing consumer perception [13]. - Xiaomi is actively expanding its production capabilities, with a new smart appliance factory in Wuhan set to begin large-scale production by the end of the year, focusing on air conditioning [14].

Core Insights - The Chinese air conditioning market is experiencing a significant shift, with Xiaomi surpassing Gree in online sales market share for the first time in July 2025, achieving 16.71% compared to Gree's 15.22% [2] - Xiaomi's annual growth rate reached 53.9%, positioning it as the third-largest player in the market, making it the only high-growth variable among the top three brands [2][6] - The competitive landscape is evolving, with Xiaomi's entry challenging the long-standing dominance of Midea and Gree, which have ruled the market for nearly two decades [6][19] Group 1: Xiaomi's Strategy - Xiaomi's approach leverages software to redefine hardware value, focusing on the smart home ecosystem, with over 70% of its air conditioning users connected online [7] - The company has established a significant partnership with Changhong, contributing approximately 60% of its revenue from air conditioning sales, but this has pressured Changhong's profit margins [10][11] - Despite its aggressive pricing strategy, Xiaomi faces limitations due to physical cost constraints, with a quality air conditioner priced no lower than 1900 yuan under ideal conditions [10][12] Group 2: Traditional Giants' Resilience - Midea and Gree maintain a strong defensive position through historical experience, scale, and control over the supply chain, which have proven effective against price wars in the past [12][13] - The market size of approximately 300 billion yuan allows these giants to leverage their scale, with Midea and Gree generating over 100 billion yuan in domestic sales, significantly outpacing their competitors [12][13] - The vertical integration in the compressor market, where Midea and Gree hold a combined 65% market share, further solidifies their control over the industry [13][16] Group 3: Future Competitive Landscape - The future competition is expected to shift from direct brand confrontations to a more nuanced "agent war" involving sub-brands, allowing giants to maintain their premium positioning while competing with Xiaomi [17][21] - Sub-brands like Midea's "Hualing" and Haier's "Tongshuai" have gained market share, indicating a strategic pivot to capture value in the price-sensitive segment without undermining the main brand [17][21] - The overall market dynamics are changing, with Xiaomi's entry prompting traditional players to adapt their strategies rather than engage in destructive price wars [19][20]

Core Insights - The air conditioning market in China is experiencing significant shifts, with Xiaomi emerging as a strong competitor, achieving a remarkable growth rate of 53.9% year-on-year, positioning itself as the third-largest player in the market [2][4][5] - Midea remains the market leader with a share of 26.8%, but it has seen a decline of 5.3% compared to the previous year, while Gree, the second-largest, has faced a more substantial drop of 16.9% [2][4] - Haier is also showing positive growth with a 9.4% increase in market share, while Aux has seen a decline of 12.9% [2][4] Market Share and Growth Rates - Midea: 26.8% market share, -5.3% year-on-year growth [2] - Gree: 17.2% market share, -16.9% year-on-year growth [2] - Xiaomi: 13.7% market share, +53.9% year-on-year growth [2][4] - Haier: 11.6% market share, +9.4% year-on-year growth [2] - Aux: 8.8% market share, -12.9% year-on-year growth [2] Strategic Insights - Xiaomi's rapid growth is attributed to its commitment to innovation and the integration of smart technology in traditional home appliances, aligning with the industry's trend towards smart home ecosystems [5][7] - The company's CEO, Lu Weibing, emphasizes the importance of transforming the competitive landscape from a "red ocean" to a "blue ocean" through continuous investment in innovation [5][7] - Xiaomi aims to further increase its market presence in the air conditioning sector, potentially surpassing Gree in the near future based on current growth trajectories [4][7]