Core Viewpoint - The "post-national subsidy" era presents increasing challenges for kitchen appliance companies, making the establishment of a unique sustainable growth path crucial for success in navigating economic cycles [1] Group 1: Company Initiatives - Vatti announced the nationwide launch of the "Terminal Renewal Plan," which aims to create a high-end, efficient consumer environment through "product renewal + service renewal" [1] - The plan focuses on meeting core demands of consumption upgrades and forming a synergy in the high-end market, reflecting Vatti's commitment to long-termism [1][4] - The initiative is part of Vatti's strategy to enhance the overall value chain and position itself as a leader in global high-end kitchen spaces [1] Group 2: Market Context - The 2025 Central Economic Work Conference encourages companies to introduce high-end, intelligent, and green products to meet quality consumption demands, indicating a shift in market dynamics [3] - The new national standards for kitchen appliances are driving technological upgrades in the industry, necessitating strategic transformation [3] Group 3: Operational Strategy - The "Terminal Renewal Plan" aims to significantly increase the proportion of new and high-end products in authorized sales outlets, enhancing consumer experience [4][6] - This plan addresses the time lag between product launch and consumer experience, allowing customers to directly experience the latest technologies in stores [6] - The increase in high-end product offerings is expected to improve gross margins and reduce inventory turnover pressure, strengthening the company's resilience in a saturated market [6] Group 4: Service Innovation - Vatti's service renewal aims to enhance user experience by transitioning from passive to proactive service models, utilizing digital technology for efficiency [10] - The introduction of a "1.5-hour response" benchmark for service requests exceeds the industry standard, aiming to streamline service delivery [10][11] - Vatti has set clear service cycle targets, including installation within 48 hours and repairs within 72 hours, addressing pain points in service delivery, especially in lower-tier cities [11]