Core Viewpoint - Midea has implemented a policy that prohibits its after-sales service providers from simultaneously collaborating with Xiaomi or Gree, primarily targeting Xiaomi due to its significant sales growth in air conditioning this year [1][3]. Group 1: Midea's Policy and Market Impact - Midea's new policy was communicated to service providers by regional managers and affects after-sales and installation services for brands like Xiaomi and Gree [1]. - Xiaomi's after-sales strategy, which includes both integrated delivery and separate delivery options, will be impacted as service providers are forced to choose between brands, potentially reducing Xiaomi's reliance on local service providers [2]. - Midea and Gree hold a near "monopolistic" advantage in market share, allowing them to exert significant influence over after-sales service providers, leading to the termination of collaborations with Xiaomi by several top service providers [3]. Group 2: Xiaomi's Challenges and Future Plans - Xiaomi's current challenge is to establish a professional after-sales team before its anticipated surge in air conditioning sales, with a timeline of three to six months required for a service point to mature [3]. - The company aims to become a leading brand in the home appliance sector within five years, targeting a revenue scale of 100 billion yuan in its home appliance business and aiming for a top-two position in the air conditioning market [3]. - Xiaomi's strategy does not rely on price wars but focuses on enhancing the average selling price (ASP) through product line expansions, such as central air conditioning systems [4]. Group 3: After-Sales Service Dynamics - The after-sales service is a critical factor influencing brand recognition in the traditional home appliance industry, often overlooked by manufacturers [5]. - Midea invests heavily in after-sales service, with service points employing around 50 staff members, half of whom are technical personnel, ensuring extensive coverage in second-tier cities [5]. - Xiaomi's after-sales model, which relies on outsourcing to third-party service providers, may not be suitable for more complex products like central air conditioning, which require specialized skills and higher profit margins [7].