A recent industry report suggests that Xiaomi is adjusting its offline store strategy to prioritize revenue from major home appliances. While Xiaomi has not officially confirmed this shift, visits to several Xiaomi Home stores in Beijing reveal a significant increase in the variety and quantity of home appliance products on display. Store employees indicate that the company plans to further expand its appliance offerings.
Since the launch of its home appliance factory in Wuhan last year, Xiaomi has accelerated its expansion into the major appliance sector. According to staff members, company leadership has directed that appliance sales this year be supported by one-on-one after-sales service. However, offline sales of appliances face challenges due to limited storage space and established consumer shopping habits. An employee from a store in Tongzhou, Beijing, noted that smartphone sales still dominate, while appliance sales remain in a stable but less profitable phase, requiring further market development.
The home appliance market is highly competitive. Industry expert Zhang Yanbin points out that rising costs and intense competition make it difficult for Xiaomi to maintain its price advantage. Instead, its key selling point lies in smart connectivity, centered around its smartphones, enabling whole-home intelligent ecosystems. Zhang also emphasizes that after-sales service will be critical for Xiaomi's long-term success in the appliance sector. Since appliances are durable goods, the first wave of Xiaomi appliance buyers has not yet encountered widespread maintenance needs. The next three to five years will be a crucial period for Xiaomi to establish a robust after-sales service system.
During visits to Xiaomi Home locations, it was observed that appliances already occupy considerable floor space, with products ranging from vacuum cleaners, TVs, air conditioners, and refrigerators to less common items like faucets and range hoods. Many products are currently offered at promotional prices. Store employees confirmed that the product mix is evenly split between smartphones and appliances, with a growing emphasis on the latter. One employee mentioned that major appliances are a key future direction for Xiaomi, supported by its own manufacturing facilities.
Despite increased production capacity, direct offline sales of large appliances such as refrigerators and TVs are logistically challenging. Most stores display sample units, with customers placing orders online for home delivery. A staff member named Xiaomei reported that while smartphones remain the top sellers, air conditioners are also performing well, and some customers have inquired about whole-home smart customization services. To attract buyers, some employees even offer their personal subsidy privileges to customers.
According to Zhang Yanbin, Xiaomi is not new to the appliance market, having sold products like air conditioners for some time. With its smartphone-centric ecosystem, the company is well-positioned to attract consumers interested in integrated smart home solutions. However, he cautions that as an internet company, Xiaomi lacks deep roots in the appliance industry, particularly in after-sales support. If not addressed, this could become a significant issue as repair demands increase over time.
Store employee Dayong mentioned that Xiaomi has begun establishing dedicated after-sales service centers in several regions and that company leadership has mandated one-on-one customer service for major appliances this year. Whether repair services are outsourced remains unclear.
In a softening home appliance market, where industry-wide retail sales declined by 4.3% in 2025, Xiaomi’s emphasis on smart and interconnected products may offer a competitive edge. However, building a reliable after-sales network will be essential to sustain consumer trust and long-term growth.
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