Core Viewpoint - The Chinese home appliance industry is transitioning from a phase of rapid scale expansion to a focus on high-quality transformation, emphasizing value upgrades over price wars [3][15]. Industry Overview - The competition logic in the home appliance sector is shifting from scale expansion to value enhancement, with companies needing to find new growth drivers in this new cycle [3][5]. - Traditional categories like televisions and refrigerators are facing short-term adjustments, while emerging categories such as dryers and dishwashers are gaining market share, indicating a shift in industry dynamics [3][4]. Company Performance - Midea reported revenue of 251.12 billion yuan for the first half of 2025, a year-on-year increase of 15.58%, with net profit rising by 25.04% to 26.01 billion yuan, driven by diversified business synergies [4]. - Haier's revenue reached 156.49 billion yuan, up 10.2%, with net profit increasing by 15.6% to 12.03 billion yuan, supported by its high-end market strategy [4]. - Gree's revenue was 97.33 billion yuan, a slight decline of 2.46%, but net profit increased by 1.95% to 14.41 billion yuan, with growth in overseas and industrial products [4][7]. Competitive Landscape - The competition is evolving from merely capturing existing market share to focusing on detailed, scenario-based, and personalized innovations to extract incremental growth from existing markets [5][14]. - The overseas market is becoming a critical battleground for growth, with companies needing to adapt their strategies to local market characteristics [5][10]. Emerging Trends - Gree's reliance on air conditioning remains high, with this segment accounting for 78.38% of its revenue, highlighting the risks of dependence on a single product category [7]. - Midea's diversified business model has shown resilience, with its new energy and industrial technology segments generating significant revenue growth [8][9]. - Haier has successfully positioned itself in the high-end market, with its Casarte brand leading in market share for premium appliances [9]. Global Expansion - Midea's overseas revenue reached 107.2 billion yuan, a 17.7% increase, with a focus on global distribution and local production to reduce costs [12]. - Haier's overseas revenue was 79.08 billion yuan, up 11.66%, with over 50% of its total revenue coming from international markets, showcasing its global strategy [13]. - Gree's overseas revenue was 16.34 billion yuan, a 10.19% increase, but its market share remains significantly lower compared to Midea and Haier [13]. Future Outlook - The smart home market in China is expected to grow steadily, with a projected shipment of 281 million units in 2025, indicating a shift towards refined operations and product upgrades [14]. - The industry is moving towards a "value war," where companies must focus on demand insights and technological advancements rather than just cost control [15].

Core Insights - The home appliance industry is experiencing significant differentiation, with the "trade-in" policy stimulating consumption and driving the sector towards smart and green transformation [1][2] - White goods and tech appliances are showing strong profit growth, while kitchen appliances are facing revenue declines due to the sluggish real estate market [1][2] Industry Performance - The overall revenue of the home appliance industry has improved significantly due to the expansion of the trade-in policy to 12 product categories, with notable differences across segments [2] - The white goods sector has demonstrated resilience, benefiting from national subsidies and improved cost structures, leading to revenue and profit growth exceeding expectations for 2024 [2] - The TV industry has become a benchmark for policy benefits, with profit improvements driven by domestic subsidies and increased export shares, alongside technological upgrades like Mini LED [2] - The kitchen appliance sector is under pressure, with expected revenue declines in the first half of 2025, although leading companies are gaining market share through high-end product offerings [2] - The tech appliance sector continues to grow rapidly, with companies like Roborock and Ninebot leading the charge, particularly in the robot vacuum segment, which is projected to exceed 15 billion yuan in online sales in 2024 [2] Policy Impact - The trade-in policy has engaged over 66 million consumers, directly stimulating consumption by over 270 billion yuan, with retail sales of major appliances increasing by 30.7% year-on-year [3] - The competitive landscape is undergoing profound changes, with platforms shifting from price-driven to value-driven models, benefiting leading companies while squeezing smaller players [3] Transformation Strategies - The home appliance industry is in a transition phase, requiring breakthroughs through technology, supply chain optimization, and strategic balance to achieve sustainable development [4] - AI technology is reshaping product design and functionality, particularly in cleaning appliances, enhancing user experience through features like spatial mapping and obstacle recognition [4][5] - Supply chain efficiency and scenario-based solutions are becoming core competitive advantages, with companies encouraged to build digital supply chains for real-time data sharing and production adjustments [5] Growth Opportunities - The growth momentum of the home appliance industry is shifting from traditional categories to tech-driven segments, with emerging categories like robot vacuums and lawn mowers expected to see explosive growth [6] - Investment opportunities lie in tech appliance sectors with low penetration rates and high growth potential, particularly in smart cleaning devices [6][7] - The competitive landscape in the smart cleaning appliance sector is evolving from price wars to differentiation, with leading companies enhancing their market share through product innovation and cost control [7]