Group 1 - Gree Electric Appliances' market director refuted claims that Xiaomi's air conditioner sales surpassed Gree's, stating that their own data shows Gree remains the leader in online sales for July [1] - According to market data for July 2025, Gree holds a market share of 15.22%, which is a decrease of 1.1% compared to the previous period [2] - Gree's average selling price for air conditioners is reported at 3488 yuan, reflecting an increase of 10.16% [2] Group 2 - Midea leads the market with a share of 18.61%, although it experienced a decline of 2.74% [2] - Xiaomi's market share is at 16.71%, showing an increase of 2.83%, with an average price of 2513 yuan, up by 11.37% [2] - Other competitors include Haier with a market share of 7.00% and an average price of 2768 yuan, which is up by 5.59% [2][4]

Core Insights - Xiaomi's air conditioner online sales in July surpassed industry leader Gree, with market shares of 16.71% and 15.22% respectively, marking a significant shift in the competitive landscape [1][2][3] Market Performance - Xiaomi's air conditioner market share increased by 2.83% compared to the previous year, while Gree's market share decreased by 1.1% [2] - The average price of Xiaomi air conditioners is 2513 yuan, which is lower than Gree's average price of 3488 yuan, indicating a price advantage for Xiaomi [2] Competitive Advantages - Xiaomi's success is attributed to three main advantages: 1. **Pricing Strategy**: Xiaomi offers more affordable options that appeal to budget-conscious young consumers [6][7] 2. **Smart Technology**: Xiaomi's smart home ecosystem provides convenience and ease of use, making it attractive to tech-savvy consumers [6][7] 3. **Product Innovation**: Xiaomi focuses on addressing traditional air conditioning pain points and leverages partnerships with established manufacturers to enhance product performance while keeping costs low [6][7] Industry Dynamics - The rise of Xiaomi in the air conditioning market poses a challenge to established brands like Gree, which have historically dominated the market [7] - Despite Xiaomi's online sales success, the overall air conditioning market still sees significant offline purchasing, where traditional brands maintain strong positions [7][9] Future Outlook - The sustainability of Xiaomi's growth in the air conditioning sector remains to be seen, as competitors may respond to regain market share [9]

Group 1 - The core viewpoint is that the demand for air conditioners and fans has surged due to high temperatures exceeding 40°C in several European countries since June [1] - In the first seven months of this year, Zhongshan City exported air conditioners worth 2.48 billion yuan to Europe, marking a year-on-year increase of 36.8% [2] - Guangdong Shunde has expanded its market efforts in Africa and the Middle East, successfully securing an order for 70,000 air conditioners in Dubai [2] Group 2 - From January to June, China's total air conditioner export value reached 9.35 billion USD, a nearly 10% year-on-year increase, with exports to EU countries rising by 43.2% to 3.76 billion USD, setting a record for the same period [2] - The home appliance industry remains highly prosperous, with expectations for strong performance from leading companies due to government subsidies and high demand driven by summer heat [2] - The cooling agent market is expected to see stable demand as air conditioner production is anticipated to remain high, with refrigerant prices expected to rise despite seasonal trends [3]

Core Viewpoint - The Chinese air conditioning market is experiencing a significant shift, with Xiaomi surpassing Gree in online sales market share for the first time, indicating a potential disruption in the long-standing duopoly of Midea and Gree [2][6][20]. Market Dynamics - In July 2025, Xiaomi's online sales market share reached 16.71%, overtaking Gree's 15.22%, while Midea remains the market leader [2]. - Xiaomi's year-on-year growth rate of 53.9% has positioned it as the third-largest player in the industry, highlighting its status as the only "high-growth" variable among the top three brands [2]. Competitive Strategies - Xiaomi's strategy focuses on leveraging software to redefine hardware value, transforming air conditioners into integral components of smart home ecosystems [7]. - The company has established a significant partnership with Changhong, contributing approximately 60% of its revenue, which has led to a compression of Changhong's profit margins [7][10]. Cost Constraints - A financial model indicates that the lowest possible retail price for a quality 1.5 HP air conditioner, under ideal conditions, cannot fall below 1900 yuan, suggesting that Xiaomi's pricing strategy is nearing its limits [8][10]. Traditional Giants' Advantages - Midea and Gree possess historical experience, absolute scale, and control over the supply chain, forming a robust defense against new entrants like Xiaomi [11][14]. - The market size is approximately 300 billion yuan, with Midea and Gree generating over 100 billion yuan in domestic sales, providing them with significant purchasing power and cost advantages [12][14]. Future Competition Landscape - The competition is expected to evolve from direct brand confrontations to a more nuanced "agent war" involving sub-brands, allowing traditional giants to maintain their premium positioning while competing with Xiaomi [17][18]. - Sub-brands like Midea's "Hualing" and Haier's "Tongshuai" have gained market share without undermining their parent brands, indicating a strategic shift in competitive tactics [17][18]. Conclusion on Market Structure - While Xiaomi's entry has altered the competitive landscape, the foundational structures of the industry, characterized by historical patterns, scale advantages, and technological control, remain intact [21][22]. - The current market dynamics suggest a more diverse and competitive environment for consumers, driven by the need for traditional players to adapt to new challenges [22].

Core Viewpoint - The July 2025 air conditioning market data reveals that Xiaomi has achieved significant growth, becoming the only top three brand to experience a substantial increase in sales, with a year-on-year growth rate of 53.9% [1][3]. Market Share Summary - The top five brands in the Chinese air conditioning market for July 2025 are Midea (26.8% market share, down 5.3% year-on-year), Gree (17.2%, down 16.9%), Xiaomi (13.7%, up 53.9%), Haier (11.6%, up 9.4%), and Aux (8.8%, down 12.9%) [3]. - Xiaomi's online market share has surpassed Gree, ranking second after Midea [3]. Sales Performance - Xiaomi's air conditioning sales volume exceeded 1.1 million units in the first quarter of 2025, reflecting a year-on-year increase of over 65% [6]. - The average selling price of Xiaomi air conditioners is reported at 2,513 yuan, with an increase of 11.37% [5]. Strategic Insights - Xiaomi's president, Lu Weibing, emphasized the importance of capability enhancement for achieving high-quality growth, indicating the company's commitment to improving its product offerings and operational efficiency [6]. - The company is not concerned about the price war in the air conditioning sector, as it believes that its product quality, hardware, and efficiency will provide a competitive edge [6].

Core Insights - The Chinese air conditioning market is experiencing a significant shift, with Xiaomi surpassing Gree in online sales market share for the first time in July 2025, achieving 16.71% compared to Gree's 15.22% [2] - Xiaomi's annual growth rate reached 53.9%, positioning it as the third-largest player in the market, making it the only high-growth variable among the top three brands [2][6] - The competitive landscape is evolving, with Xiaomi's entry challenging the long-standing dominance of Midea and Gree, which have ruled the market for nearly two decades [6][19] Group 1: Xiaomi's Strategy - Xiaomi's approach leverages software to redefine hardware value, focusing on the smart home ecosystem, with over 70% of its air conditioning users connected online [7] - The company has established a significant partnership with Changhong, contributing approximately 60% of its revenue from air conditioning sales, but this has pressured Changhong's profit margins [10][11] - Despite its aggressive pricing strategy, Xiaomi faces limitations due to physical cost constraints, with a quality air conditioner priced no lower than 1900 yuan under ideal conditions [10][12] Group 2: Traditional Giants' Resilience - Midea and Gree maintain a strong defensive position through historical experience, scale, and control over the supply chain, which have proven effective against price wars in the past [12][13] - The market size of approximately 300 billion yuan allows these giants to leverage their scale, with Midea and Gree generating over 100 billion yuan in domestic sales, significantly outpacing their competitors [12][13] - The vertical integration in the compressor market, where Midea and Gree hold a combined 65% market share, further solidifies their control over the industry [13][16] Group 3: Future Competitive Landscape - The future competition is expected to shift from direct brand confrontations to a more nuanced "agent war" involving sub-brands, allowing giants to maintain their premium positioning while competing with Xiaomi [17][21] - Sub-brands like Midea's "Hualing" and Haier's "Tongshuai" have gained market share, indicating a strategic pivot to capture value in the price-sensitive segment without undermining the main brand [17][21] - The overall market dynamics are changing, with Xiaomi's entry prompting traditional players to adapt their strategies rather than engage in destructive price wars [19][20]

Core Insights - The air conditioning market in China remains dominated by three major brands: Midea, Gree, and Haier, according to the latest retail monitoring reports from AVC and CMM [1][2] - Midea holds the largest market share at 29%, followed by Gree at 17% and Haier at 15%, with Haier being the only brand among the top three to show a year-on-year net growth in market share [1][2] Group 1 - Midea's market share decreased from 30% in July 2024 to 29% in July 2025, reflecting a 1% decline [2] - Gree's market share also declined from 19% in July 2024 to 17% in July 2025, marking a 2% decrease [2] - Haier's market share increased from 11% in July 2024 to 15% in July 2025, indicating a 4% growth [2] Group 2 - Xiaomi's market share fell from 12% in July 2024 to 10% in July 2025, representing a 2% decline [2] - Aux maintained its market share at 8% from July 2024 to July 2025, showing no change [2] - The overall competitive landscape in the air conditioning market remains stable, with the top three brands consistently leading [1][2]

Group 1 - The core viewpoint of the article highlights that Xiaomi has surpassed Gree in online air conditioner sales, ranking second in the market, only behind Midea [1] - In July 2025, the top five air conditioner brands in China by sales volume were Midea, Gree, Xiaomi, Haier, and Aux [1] - Xiaomi achieved a market share of 13.7% in July, representing a year-on-year growth rate of 53.9%, making it the only brand among the top three to experience significant growth [1] Group 2 - According to data from Aowei Cloud Network, Xiaomi's online market share for air conditioners has exceeded that of Gree, positioning it as the second-largest online seller [1] - Xiaomi's president, Lu Weibing, emphasized the importance of solid capabilities for achieving high-quality growth and expressed gratitude for the support of Xiaomi's home appliance segment [1]

Core Insights - The air conditioning market in China is experiencing significant changes, with Midea, Gree, and Xiaomi leading in sales as of July 2025. Xiaomi stands out with a remarkable year-on-year growth rate of 53.9%, making it the only top brand to maintain positive growth [1][2]. Market Share and Growth - Midea holds the largest market share at 26.8%, but has seen a decline of 5.3% compared to the previous year [2]. - Gree ranks second with a market share of 17.2%, experiencing a substantial drop of 16.9% year-on-year [2]. - Xiaomi's market share has increased from 8.9% to 13.7%, narrowing the gap with Gree from 11.8% to just 3.5% [1][2]. Competitive Strategies - Xiaomi's success is attributed to its competitive pricing strategy, particularly with its "Giant Energy Saving Pro" series, which can be priced as low as 1500 yuan after government subsidies, offering significant savings compared to Gree's products [4]. - The energy efficiency of Xiaomi's products is highlighted, with an APF efficiency ratio of 5.65, allowing users to save approximately 30% on monthly electricity bills [4]. Technological Advancements - Xiaomi's air conditioners support remote control via the Mi Home app and voice control through Xiao Ai, contrasting with Gree's traditional remote control approach [5]. - The innovative "Pro Air Outlet" model utilizes advanced millimeter-wave radar technology for human sensing, enhancing user comfort by intelligently adjusting airflow [5]. Supply Chain and Business Model - Xiaomi's unique supply chain management, integrating resources from established manufacturers like Changhong, allows for quality assurance while significantly reducing manufacturing costs [5]. - This asset-light operational model provides Xiaomi with greater flexibility and cost advantages in a competitive pricing environment, contrasting with Gree's heavy asset strategy [5]. Industry Challenges - Gree faces challenges in adapting to market changes, as highlighted by the ongoing patent disputes initiated by its CEO, Dong Mingzhu, against Xiaomi [6]. - Analysts suggest that Gree's reliance on patent barriers and traditional sales channels may not be sufficient to counter Xiaomi's innovative approach [6]. - Gree is attempting to respond to market competition by accelerating its own smart transformation with new products and applications [6].

Core Insights - The air conditioning market in China is experiencing significant shifts, with Xiaomi emerging as a strong competitor, achieving a remarkable growth rate of 53.9% year-on-year, positioning itself as the third-largest player in the market [2][4][5] - Midea remains the market leader with a share of 26.8%, but it has seen a decline of 5.3% compared to the previous year, while Gree, the second-largest, has faced a more substantial drop of 16.9% [2][4] - Haier is also showing positive growth with a 9.4% increase in market share, while Aux has seen a decline of 12.9% [2][4] Market Share and Growth Rates - Midea: 26.8% market share, -5.3% year-on-year growth [2] - Gree: 17.2% market share, -16.9% year-on-year growth [2] - Xiaomi: 13.7% market share, +53.9% year-on-year growth [2][4] - Haier: 11.6% market share, +9.4% year-on-year growth [2] - Aux: 8.8% market share, -12.9% year-on-year growth [2] Strategic Insights - Xiaomi's rapid growth is attributed to its commitment to innovation and the integration of smart technology in traditional home appliances, aligning with the industry's trend towards smart home ecosystems [5][7] - The company's CEO, Lu Weibing, emphasizes the importance of transforming the competitive landscape from a "red ocean" to a "blue ocean" through continuous investment in innovation [5][7] - Xiaomi aims to further increase its market presence in the air conditioning sector, potentially surpassing Gree in the near future based on current growth trajectories [4][7]