Core Viewpoint - The competition between Gree and Xiaomi in the air conditioning market is intensifying, with Xiaomi's market share rapidly approaching that of Gree, raising concerns about Gree's market position [1][3]. Market Share Analysis - As of July, the top five players in the Chinese air conditioning market are Midea (26.8%), Gree (17.2%), Xiaomi (13.7%), Haier, and Aux [3]. - Xiaomi's market share increased by 53.9% year-on-year, while Gree's share decreased by 16.9% [3]. - In the online market, Xiaomi's share reached 16.71%, surpassing Gree's 15.22%, and is close to Midea's 18.61% [5]. Consumer Demographics - Xiaomi has successfully attracted younger consumers, which poses a challenge for Gree, traditionally favored by older demographics who value Gree's established reputation for quality [6]. - The younger generation, particularly those born in the 90s and 00s, is becoming the primary consumer group, influencing market dynamics [6]. Ecosystem Advantage - Xiaomi benefits from a comprehensive ecosystem, which enhances its ability to attract and retain customers across various product categories, making it easier to gain market share compared to Gree [8]. - The brand loyalty developed through Xiaomi's ecosystem encourages consumers to choose Xiaomi products across different categories, while Gree's ecosystem remains relatively limited [8].