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Midea Chairman: Xiaomi Has Already Lost Strategically in Dabbling into Home Appliance Industry
Fang Hongbo, Chairman and President of MIDEA GROUP (00300.HK)(000333.SZ), responded to investors' inquiries about competition with XIAOMI-W (01810.HK) at the 2024 Shareholders&...
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Midea Chairman: Xiaomi Has Already Lost Strategically in Dabbling into Home Appliance Industry
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Fang Hongbo, Chairman and President of MIDEA GROUP (00300.HK)  -1.100 (-1.444%)    Short selling $46.78M; Ratio 8.260%   (000333.SZ)  -0.530 (-0.700%)   , responded to investors' inquiries about competition with XIAOMI-W (01810.HK)  +0.550 (+1.036%)    Short selling $353.66M; Ratio 8.783%   at the 2024 Shareholders' Meeting, Chinese news broke. He stated that the company is strategically not afraid of Xiaomi making foray into the home appliance industry, given common sense analysis and judgment.

While the home appliance industry has low barriers to entry, it is highly competitive and considered the "Red Sea", the Chairman elaborated. Home appliances are electromechanical products with fixed strategies, and there is limited room for efficiency improvement in the industry, he said.

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Therefore, regardless of the approach, the ultimate winner is determined by a massive war of attrition, which is the same for new players like Xiaomi, and Redmi, as well as existing major players.

At this juncture, no high-tech companies have emerged from the home appliance industry, indicating that "anyone entering the home appliance industry now has already lost strategically and cannot go far", he boasted.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-09 12:25.) (A Shares quote is delayed for at least 15 mins.)

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