Xiaomi snatches 10% of the air conditioning market share? Goldman Sachs: Midea is resilient, GREE is most vulnerable to impact
Wallstreetcn·- Goldman Sachs reports that Xiaomi is making significant inroads into China's air conditioning market, projecting its market share to rise to about 10% by 2026. - The competition is characterized by a focus on supply chain, manufacturing, and distribution efficiency rather than just price wars, with Midea Group seen as the most resilient player. - In contrast, Gree Electric, heavily reliant on domestic sales and slow to adapt, is identified as the most vulnerable, leading to a downgrade in its rating from "buy" to "neutral."Xiaomi strongly enters the "top three," with online sales surpassing GREE in July. Has the air conditioning landscape changed?
Wallstreetcn·- In July 2025, Xiaomi's air conditioner market share rose to 16.71%, surpassing Gree for the first time, indicating a shift in China's air conditioning market dynamics. - Despite Xiaomi's rapid growth, traditional giants like Midea and Gree maintain significant barriers through historical experience, scale, and control over the supply chain. - The future competition is expected to evolve into a "sub-brand agent war," where established brands leverage sub-brands to compete effectively without undermining their premium positioning.