The home appliance sector demonstrated resilience during the 2025 Double 11 shopping festival, with nearly 60% of consumers in first- and second-tier markets opting for AI-integrated smart appliances, while products like dryers, dishwashers, and water purifiers gained popularity in county-level markets. Leading brands such as Midea and Haier maintained their strong performance, reinforcing stable industry dynamics while actively pursuing incremental growth.
**Resilient Performance Driven by Policy Support and Structural Upgrades** This year’s Double 11 saw steady growth in the home appliance sector, supported by promotional discounts, policy-driven demand recovery, and sustained structural upgrades. AI-integrated and innovative appliances gained traction, with Suning reporting that nearly 60% of consumers in top-tier markets favored smart appliances. Demand for premium products like dryers and dishwashers also surged in lower-tier markets. Policy tailwinds and emerging product categories are expected to sustain sector momentum.
**Leading Brands Consolidate Market Position, Explore New Growth Avenues** Data and brand reports indicate that industry leaders Midea and Haier delivered standout performances. Key strategies included: 1. **Bundled Sales Success**: Midea’s COLMO series sales grew over 40%, while Haier’s bundled sales exceeded RMB 4 billion. 2. **Young Consumer Expansion**: Midea saw over 50% growth among younger demographics, while Haier’s Gen Z sales rose 38%. 3. **Technological Innovation**: Hisense’s MiniLED TVs led sales across channels, and Roborock’s floor-cleaning robots achieved strong growth. By diversifying product lines, expanding customer segments, and leveraging technology, leading brands are well-positioned for further domestic growth.
**Export Recovery on the Horizon, Global Expansion Continues** Beyond robust domestic demand, signs of recovery in overseas markets are emerging. Despite high base effects in Q3, some companies reported sequential improvements in export performance. With positive developments in U.S.-China trade talks and inventory normalization, export demand is expected to rebound. Smart appliances, particularly robotic cleaners, continue to see high growth overseas, supported by structural trends and global capacity optimization.
**Maintain "Outperform" Rating** The sector’s valuation and positioning have retreated to historical lows, while leading companies offer high-quality operations and attractive dividends. Key recommendations include: 1. **White Goods Leaders**: Midea Group (000333.SZ), Haier Smart Home (600690.SH), Hisense Home Appliances (000921.SZ), and Gree Electric (000651.SZ). 2. **TV Sector**: Hisense Visual Tech (600060.SH) and TCL Electronics (01070.HK). 3. **Cleaning Appliances**: Roborock (688169.SH) and Ecovacs (603486.SH).
**Risks**: Policy delays, raw material/currency volatility, and weaker-than-expected export demand.
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