Core Viewpoint - Midea has implemented a new policy prohibiting its after-sales service providers from simultaneously handling business for Xiaomi or Gree, which is seen as a response to the competitive pressure from Xiaomi's rapidly growing air conditioning business [1][3]. Group 1: Midea's Policy and Market Position - Midea's new policy was communicated by regional heads to service providers, specifically affecting after-sales and installation services for brands like Xiaomi and Gree [1]. - Midea maintains a leading market share of 29% in the air conditioning sector, with Gree at 17%, Haier at 15%, Xiaomi at 10%, and Aux at 8% [3]. - The competitive landscape is intensifying, with Xiaomi's air conditioning business growing significantly, prompting Midea to reinforce its service exclusivity [3][4]. Group 2: Xiaomi's Strategic Moves - Xiaomi has recently upgraded its air conditioning warranty from 6 years to 10 years, indicating a commitment to enhancing customer experience [3]. - The company is expanding its home appliance business, with plans for large-scale production of air conditioners starting in 2026, following the completion of its Wuhan factory [4]. - Xiaomi aims to become a top-tier home appliance brand in China by 2030, targeting a market position among the top three in the air conditioning sector [5]. Group 3: Industry Insights - The home appliance industry is characterized by low entry barriers and intense competition, with established players facing challenges from new entrants like Xiaomi [5]. - Midea's chairman has expressed skepticism about the potential for new high-tech companies to emerge in this saturated market, highlighting the difficulties for Xiaomi to displace existing leaders [5].

Core Viewpoint - Midea Group has reportedly instructed its after-sales service providers to stop accepting service contracts for air conditioning installations and repairs from Xiaomi and Gree, reflecting the intensifying competition in the home appliance industry [1][5]. Group 1: Industry Competition - The home appliance industry is experiencing fierce competition, with brands like Midea, Xiaomi, and Gree vying for market share and after-sales service dominance [1][5]. - Midea's actions may be aimed at protecting its market share against Xiaomi's rapid growth in the air conditioning sector, which has seen Xiaomi achieve a year-on-year sales growth of 53.9% [3][6]. - The competitive landscape has shifted, with Xiaomi's market share in air conditioning surpassing Gree, positioning it as a significant threat to traditional manufacturers [6][7]. Group 2: After-Sales Service Dynamics - After-sales service has become a critical battleground for user acquisition among major brands, with Midea's policy potentially limiting Xiaomi's access to service networks [2][4]. - Midea has denied enforcing exclusive partnerships with service providers, emphasizing its commitment to user experience [2][5]. - The establishment of a professional after-sales service network is challenging, particularly for Xiaomi, which relies heavily on third-party service providers [4][7]. Group 3: Market Share Insights - As of July 2025, Midea holds a 29% market share, followed by Gree at 17%, Haier at 15%, Xiaomi at 10%, and Aux at 8% [6]. - The competitive dynamics have led to a shift from capital cooperation between Midea and Xiaomi to direct competition, with Midea planning to divest its shares in Xiaomi [6][7]. - The ongoing price wars and resource competition between Midea and Xiaomi highlight the escalating rivalry in the home appliance sector [6][7].

Core Viewpoint - Midea has reportedly implemented a policy that restricts after-sales service providers from collaborating with Xiaomi or Gree, which has been denied by Midea, emphasizing its commitment to user experience and non-exclusivity in partnerships [2][3]. Group 1: Competitive Landscape - Xiaomi's air conditioning business has shown significant growth this year, increasing competitive pressure on Midea [3]. - Xiaomi's CEO Lei Jun stated that home appliances have become a strategic business for the company, with plans for large-scale production of air conditioners by 2026, aiming to become a top brand in China's home appliance market [4]. - Midea's chairman, Fang Hongbo, questioned which of the top three home appliance giants Xiaomi intends to displace to achieve its market ambitions [5]. Group 2: Industry Dynamics - Fang Hongbo highlighted that the home appliance industry is highly competitive with low entry barriers, resulting in a "red ocean" market where competition is fierce and efficiency gains are limited [5]. - He expressed skepticism about the potential for great, high-tech companies to emerge in the home appliance sector, suggesting that any new entrants are strategically at a disadvantage [6].

Core Insights - Midea has reportedly not allowed after-sales service providers to simultaneously cooperate with Xiaomi or Gree, but Midea denied this claim, emphasizing its commitment to user experience and lack of exclusive cooperation policies [1][1] - Xiaomi's air conditioning business has been growing rapidly, posing competitive pressure on Midea, with plans to become a leading brand in the home appliance sector and achieve a market value of 100 billion in the next five years [1][1] - Midea's chairman questioned which of the top three home appliance giants Xiaomi intends to displace to enter the top tier of the industry [1][1] - The home appliance industry is characterized by low entry barriers and high competition, leading to a "red ocean" market where competition results in significant resource consumption [1][1][2] - Midea's chairman expressed skepticism about the potential for great, high-tech companies to emerge in the home appliance industry, suggesting that any new entrants are strategically at a disadvantage [2]

Group 1 - The core viewpoint of the articles highlights the intense price competition in the home appliance market during this year's Double 11 shopping festival, with brands shifting focus from price wars to quality and supply chain efficiency [2][3][5] - Major brands like Gree and Midea are adapting to market changes by launching new products at competitive prices, with Gree's new sub-brand targeting the budget segment [5][6] - The overall market performance for this year's Double 11 is expected to be lower than last year due to reduced government subsidies and increased competition among brands [6][7] Group 2 - Sales data indicates significant growth in specific product categories, such as AI-related electronics and large appliances, with some products experiencing over 200% year-on-year growth [3][4] - The market for large-screen TVs is expanding, with 98-inch and above models gaining traction despite an overall decline in TV sales [8] - New emerging categories like washing machines, dishwashers, and smart home devices are capturing a growing share of the market, indicating opportunities for innovation and product upgrades [8][9] Group 3 - Companies are focusing on enhancing customer experience and operational efficiency through supply chain collaboration and product bundling strategies [9][10] - The trend towards high-end products and service upgrades is becoming more pronounced as brands seek to differentiate themselves in a saturated market [10] - E-commerce platforms are implementing aggressive pricing strategies and guarantees to stimulate consumer demand despite the challenging market conditions [10]