Core Insights - The article discusses the impending transition in the home appliance industry as the national subsidy policy is set to close, with a projected 800 billion subsidy expected to drive approximately 5% growth in the sector, promoting green and smart consumption [1][13] - The industry anticipates a more targeted subsidy approach in 2026, focusing on new and trending product categories while maintaining support for high-end energy-efficient models [1][13] - The company Vatti has proactively initiated a "three transformations" strategy (high-end, youth-oriented, and intelligent) to gain a competitive edge in this evolving market [1][13] Product Strategy - Vatti's high-end strategy is expected to be crucial as the subsidy intensity declines, potentially falling below half of the 2025 levels [3][15] - The company has successfully launched innovative products, such as the "Beauty Bath Gas Water Heater," which integrates skincare needs with bathing experiences, achieving over 32,000 units sold within two months [3][15] - Vatti's focus on integrated and intelligent kitchen appliances aligns with current consumer trends, exemplified by the FA50P steam oven, which showcases energy efficiency and multifunctionality [3][15][16] Marketing Innovations - Vatti is shifting from price competition to value competition, emphasizing brand value through diverse and youthful marketing strategies [6][18] - The company has engaged younger consumers through relatable short dramas and innovative marketing campaigns on popular platforms like Douyin and Xiaohongshu [6][18][19] - These marketing efforts have successfully enhanced Vatti's brand image, positioning it as a trendy kitchen appliance brand and fostering emotional connections with younger consumers [6][19][7] Operational Enhancements - The company is enhancing its offline channel advantages by transforming nearly 1,000 stores into smart showrooms, incorporating digital tools like VR and AI to improve customer experience [9][21] - Vatti's offline channel revenue reached 1.486 billion yuan in the first half of 2025, with a gross margin of 45.89%, reflecting a year-on-year increase of 6.83% [9][21] - The company is also expanding its online presence across major e-commerce platforms, having opened over 1,000 new stores in the first half of 2025 [11][23] Sustainability and Technology - Vatti is committed to sustainability, with its rooftop photovoltaic project generating 32% of its total electricity consumption and saving 5.81 million kilowatt-hours of municipal electricity [11][23] - The company is advancing AI integration in its products, offering a smart management system that allows users to control appliances remotely via an app [11][23] - Vatti's strategic focus on value creation positions it well to navigate market fluctuations and capitalize on future growth opportunities [12][24]

Core Viewpoint - The overall retail sales of home appliances are expected to decline by at least 16.4% year-on-year from September to December, while Vatti's third-quarter financial report shows strong performance with a revenue of 4.158 billion yuan and a gross margin of 43.29% [1][2] Group 1: Industry Trends - The kitchen appliance industry is under pressure with weak market demand, leading to a competitive environment [1] - The trend of consumption upgrading has shifted consumer demand from basic cooking needs to enhanced lifestyle experiences, emphasizing intelligent cooking, healthy dietary management, and aesthetic design [1][2] Group 2: Company Strategy - Vatti has adopted a high-end, intelligent, and youthful strategy to capture the consumption upgrade trend, resulting in stable operational performance [1] - The company has accelerated AI integration, creating a smart experience system that allows users to control devices remotely through an app, enhancing user interaction and convenience [1] Group 3: Product Innovations - Vatti has introduced several health-focused technologies, such as low-oxygen steaming and low-fat baking, achieving a 93% retention rate of anthocyanins in steamed purple sweet potatoes and a 90.9% fat reduction in micro-frying [2] - The launch of the fifth-generation surfing steam washing technology addresses the cleaning challenges of Chinese kitchens, achieving a 99.2% cleaning rate with a one-button operation [2] Group 4: Aesthetic Integration - Vatti's products integrate functionality with aesthetic design, offering a comprehensive kitchen solution that includes a range of appliances seamlessly connecting with cabinetry [2] - The company's focus on user value transformation has allowed it to maintain brand premium and product competitiveness, achieving gross margin growth even in a downturn [2]