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 recent establishment of the industry standard T/CITS 406 - 2025 for embedded steam and baking machines, led by Vatti and the China Household Electrical Appliances Research Institute, signifies a shift towards technology innovation and user experience in the high-end kitchen appliance sector, moving away from price competition [1][7] Group 1: Industry Standards and Innovations - The implementation of the new standard is expected to curb the phenomenon of "price internal competition" in the industry, guiding companies to focus on technological innovation and enhancing user experience [1][7] - Vatti's microcrystalline flat baking technology represents a significant advancement, allowing for precise temperature control with a temperature difference of ≤6℃ within the same layer and ≤15℃ across the entire space, while reducing preheating time by 40% [3][5] - The FA50P embedded steam and baking machine, utilizing this technology, addresses common user pain points such as uneven cooking and cleaning difficulties, thereby enhancing the overall cooking experience [4][5] Group 2: Market Trends and Consumer Preferences - The household appliance market (excluding 3C) reached a retail scale of 179.8 billion yuan in Q1 2025, showing a year-on-year growth of 2.1%, with embedded appliances emerging as a new growth point [3] - Consumers are increasingly prioritizing quality of life, leading to higher demands for the performance and user experience of steam and baking machines, focusing on cleanliness, health, and multifunctionality [3][5] - Vatti's strategic positioning as a "world health steam and baking master" reflects its commitment to addressing industry pain points through innovative technologies, thereby reshaping the high-end value standards of the steam and baking category [9]