As summer heat peaks, the home appliance market this week demonstrates steady progress with three key trends: quality upgrades in domestic demand, explosive growth in overseas markets, and diverging corporate strategies amid sustained policy support. European heatwaves have created structural opportunities for AC manufacturers, prompting more Chinese companies to refocus on international markets.

Domestically, trade-in policies have proven highly effective. By June 20, annual sales under consumer goods replacement initiatives surpassed RMB 1 trillion, complemented by the allocation of RMB 62.5 billion in special treasury bonds targeting rural and elderly consumer groups. These measures strengthen recycling infrastructure while laying foundations for market recovery. Consumer spending patterns show significant upgrading: during 618 promotions, TV sales declined overall, but large-screen models (75"+) captured nearly 50% market share with ultra-large screens (98"+) growing rapidly. The industry is shifting from volume-based competition to quality-driven consumption. Meanwhile, kitchen appliance and small appliance manufacturers are undergoing strategic realignment - Huo Xing Ren terminated production expansion while Shuaifeng Electric pursued cross-border M&A for self-rescue, accelerating industry consolidation.

The overseas market emerged as this week's highlight, with European heatwaves driving essential demand for air conditioners. With only 20% market penetration, Europe presents massive growth potential with over 150 million new installations projected over the next two decades. Chinese brands are capitalizing on this opportunity: following Midea's differentiated product success, Gree's European sales surged 40% YoY, Haier maintained its top position among Chinese AC brands, Aux doubled sales in Western Europe, and Changhong set new export records. Localized product designs and distribution strategies enabled sustained market share gains. Overall, China's home appliance exports in May achieved double-digit growth in both volume and value, with refrigerators, washing machines, and small appliances performing exceptionally well.

At the corporate level, leading brands continue long-term strategic investments. Midea partnered with FC Barcelona for global brand upgrading, Haier Smart Home implemented three AI-driven growth strategies, Panasonic expanded its AI business, and Hisense Hitachi completed its rebranding to Hisense Bosch following equity restructuring. The industry has officially entered a new development phase characterized by "domestic quality upgrades, overseas expansion, and technological empowerment."

Consumer Goods Trade-In Sales Exceed RMB 1 Trillion This Year

Latest NDRC data reveals that as of June 20, 2026, consumer goods trade-in programs generated over RMB 1 trillion in sales, benefiting 136 million consumers. The NDRC recently allocated RMB 62.5 billion in ultra-long-term special treasury bonds to support local implementation of these initiatives.

Zhu Mande, Associate Dean of Guizhou University's Economics School, commented: First, optimize subsidy mechanisms by enhancing targeting and inclusivity, particularly for rural and elderly consumers. Second, improve recycling networks by establishing integrated urban-rural collection systems ensuring proper disposal channels. Third, strengthen industrial policies through increased financial support for advanced recycling technologies and collaborative R&D between universities, research institutions, and enterprises.

China's Home Appliance Exports Surge 8.8% YoY in May

Benefiting from base effects, channel restocking, and diminishing tariff impacts, home appliance exports accelerated in May. By category: refrigerators and washing machines outperformed ACs, while small appliances like vacuum cleaners and ovens maintained strong growth. According to GAC data, China exported 420 million home appliance units in May 2026 (+8.8% YoY, +2.7ppt MoM), valued at USD 8.982 billion (+9.4% YoY, +2.2ppt MoM). For January-May 2026, cumulative exports reached 1.918 billion units (+4.1% YoY) worth USD 42.785 billion (+4.3% YoY).

Most categories achieved simultaneous growth in volume and value, with average price increases driving export growth for TVs and vacuum cleaners. May export value growth rates by category: ACs (-7.3%), refrigerators (+23.1%), washing machines (+13.4%), TVs (+6.8%), vacuum cleaners (+51.9%), microwaves (+17.8%), electric fans (+5.5%), and ovens (+52.3%).

75-Inch TVs Capture 25% of 618 Market Share

While overall TV sales declined during 618, consumer preferences shifted decisively toward larger, higher-specification models. LoTu Technology data shows online TV sales fell nearly 16% YoY during the promotion period, with average prices rising RMB 121 and screen sizes increasing 1.5 inches. The 75-inch segment remained most popular at 25% market share for three consecutive years, followed by 85-inch models at 18.8% (+4.5ppt YoY). The gap between these segments continues narrowing, with 75"+ models accounting for 47.9% of sales. Ultra-large screens (98"+) demonstrated explosive 43.3% sales growth.

Europe to Add Over 150 Million AC Installations

An unprecedented heatwave swept across Europe, with temperatures exceeding 45°C in Spain, 40°C in multiple French regions, and red heat warnings issued in the UK, France, Spain, and Portugal. Global Times reports estimate approximately 15,000 heat-related deaths. EU retail shelves were cleared of AC units, with portable models in particularly high demand. Italian installation orders are booked through August.

The IEA's "The Future of Cooling" report projects EU AC ownership will double from 110 million units in 2019 to 275 million by 2050. This implies over 150 million new installations in the next two decades, with penetration rates rising from 20% currently to 30% by 2030, 40% by 2035, and exceeding 50% post-2040. Key drivers include: Germany's 2025 requirement for AC conduits in new residential buildings, solutions for non-invasive installations in older buildings, and EU energy efficiency regulations accelerating replacement of high-consumption models.

Gree's European Sales Surge 40% in H1

Public reports indicate Gree's French terminal sales grew 50% YoY from January-June 2026, with portable ACs selling out regionally and wall-mounted unit installations booked through August. European sales overall increased over 40% YoY during the same period, with low inventory levels at distributor warehouses across France, Spain, and Portugal.

German consumers report 11-year-old Gree ACs still performing strongly without failures, while models purchased in 1997 require only minor capacitor replacements. Zhu Lei, Gree's CMO, stated the company maintains consistent quality without engaging in price wars or specification reductions.

Haier Tops Chinese AC Brands in Europe

Through years of localization efforts, Haier leads Chinese companies in Europe with market-leading positions in multiple countries. In Spain, it holds double-digit annual market share (the only brand achieving this in six years) with 34.5% CAGR over five years. In Italy, it leads both professional channels and multi-split AC segments; in Poland, it ranks second overall and first in multi-split systems.

Haier addresses Europe's installation challenges and energy costs through targeted product development. The Expert series features single-screw modular design for easy maintenance, while the Pearl Premium series meets EU A+++ energy standards, reducing power consumption in high-tariff environments.

Aux Doubles Western European Sales

Industry Online data shows Aux's split and portable AC sales in Western Europe (Italy, Netherlands, France, Spain) grew 144% YoY from January-May 2026. Its JD.com JOYBUY platform models repeatedly sold out, driving online channel growth. Aux has ranked among global top three in residential split AC sales for seven consecutive years (2018-2024) and led global smart AC sales in 2024-2025.

Aux advances its Globalization 2.0 strategy by localizing R&D, marketing, and after-sales services. It has established sales companies in 11 countries (Malaysia, Thailand, USA, Saudi Arabia, UAE, Spain, Italy, France, Vietnam, Indonesia, Egypt) for localized operations adhering to regional regulations and consumer preferences.

Changhong's European AC Shipments Hit Record High

Changhong achieved record European sales in the first five months of 2026. Europe represents a strategic high ground for global AC manufacturers, with only 20% residential penetration and over 10 million annual Chinese imports.

This success stems from Sichuan Changhong's strategic deep cultivation (deep cultivation). In October 2025, it restructured European operations into Southwestern and Eastern/Central Europe divisions for regional precision. Shipment structures show balanced sales between divisions (Southwestern Europe 47.9%, Eastern/Central Europe 52.1%). Serbia and Spain serve as core markets (50%+ combined), with Germany, France, Bulgaria, and Greece emerging as new growth engines.

Midea Partners with FC Barcelona for Five Years

Chinese home appliance leader Midea and La Liga/Spanish Super Cup champions FC Barcelona announced a five-year partnership effective from the 2026/27 season. As principal partner, Midea's logo will debut on match jerseys and training kit sleeves, with comprehensive brand exposure at Barcelona's La Liga home games. Barcelona boasts 29 La Liga and 5 UEFA Champions League titles, with over 450 million global fans and 545 million annual TV viewers.

Over five seasons, Midea will leverage Barcelona's global sports influence and fanbase across event promotion, content co-creation, fan engagement, and local market activation to enhance global brand recognition. Both parties will explore synergies between sports spirit, technological innovation, and lifestyle, offering consumers smart, convenient, high-quality experiences through both sporting events and daily life.

Haier Smart Home Unveils Three AI Growth Strategies

At its 2025 shareholders meeting, Haier Smart Home announced three core AI-era growth strategies: The first strengthens its smart home foundation, the second expands boundaries through HVAC and commercial refrigeration, and the third focuses on future growth through AI and household robots.

These strategies respectively secure current operations, expand market reach, and invest in future innovation. In 2025, Haier integrated residential and commercial AC divisions into a new HVAC platform. This March, it unveiled three categories of household service robots for cleaning, companionship, and domestic tasks.

Hisense Hitachi Rebrands as Hisense Bosch

Qingdao Hisense Hitachi Air Conditioning Systems (Hisense Hitachi) notified channel partners of its rebranding to Hisense Bosch Air Conditioning Systems.

Founded in 2003 as a Sino-Japanese joint venture, Hisense Hitachi underwent equity changes in July 2025 when Bosch Group acquired Johnson Controls' global residential and light commercial HVAC business, including the Hitachi JV. Bosch became Hisense Hitachi's second-largest shareholder post-acquisition, necessitating this corporate rebranding.

Shuaifeng Electric Acquires Huijia Tech to Maintain Listing

Shuaifeng Electric announced plans to acquire 100% of Hangzhou Huijia Information Technology via cash payment. Founded in 2016 with RMB 25.69 million capital, Huijia specializes in smart home devices/gateways/switchgear/control systems, valued at RMB 450-500 million. This cash acquisition won't issue new shares.

The deal constitutes major asset restructuring without related-party transactions or backdoor listing. Actual controllers remain unchanged (Li Lianqiang and Si Yingchang now own 100% of Huijia). This follows Shuaifeng's 47% YoY revenue decline to RMB 227 million in 2025 and RMB 7.2 million Q1 2026 loss, leading to its *ST designation in April 2026.

Huo Xing Ren Halts Smart Kitchen Production Base

Huo Xing Ren announced termination of its "Smart Kitchen Appliance Production Base" project due to changed market demands, retaining RMB 212 million in remaining funds in dedicated accounts. Approved by the board on June 27, the decision requires shareholder and bondholder approval.

Originally planned for 120,000 integrated stove, 100,000 dishwasher, 50,000 water heater, and 20,000 kitchen appliance annual capacity, the project faced two delays due to market changes: first from June 2025 to June 2026, then to June 2027. As of May 31, 2026, RMB 347 million (62.09%) of funds had been invested.

Panasonic Expands AI Business Operations

Japanese electronics giant Panasonic announced major AI business expansion to solidify its record valuation. Driven by AI infrastructure demand, its stock price has more than doubled this year, reaching JPY 11.5 trillion market cap. Once a consumer electronics leader, Panasonic reduced appliance dependency, becoming Tesla's key battery supplier.

Panasonic aims for JPY 1.4 trillion in AI infrastructure sales over three years through partnerships with industry leaders. It will invest JPY 500 billion in this sector over two fiscal years while expanding layoffs to 12,000 to cut costs.

Whirlpool of the U.S. Divests Entire Stake in Beko Europe

Recently, Turkish home appliance group Arçelik announced the acquisition of the remaining 25% stake in Beko Europe held by Whirlpool of the United States. Upon completion of the transaction, Arçelik will achieve full control of Beko Europe. However, this does not mean that Whirlpool will completely withdraw from competition in the European home appliance market.

Beko Europe is a joint venture entity established by the Turkish Arçelik Group in 2024 through the integration of its European major home appliance business with Whirlpool. In its 2025 annual report, Whirlpool has already positioned the North American market at the strategic center. Over the past year, it has consistently advanced asset restructuring and business adjustments, with a clear direction: refocusing resources on North America. Previously, Whirlpool China had already sold its majority stake to Galanz Group and currently retains only a 19.9% share.

Refocusing on Core Business: Suning.com Divests Entire Stake in Carrefour China

Suning.com announced that its wholly-owned subsidiary, Suning International, has completed the sale of 100% of the equity in Keyoushi (China) Holdings Co., Ltd. through a public listing on the Jiangsu Province Equity Exchange. Keyoushi, formerly known as Carrefour China, was acquired by Suning.com in 2019 for over RMB 5.2 billion in an attempt to strengthen its fast-moving consumer goods category.

The announcement stated that following the completion of this transaction, Keyoushi Holdings will no longer be included in the consolidated financial statements of Suning.com. It is expected to reduce the company's total liabilities by approximately 5%, helping to further optimize the asset-liability structure and reduce operational and management risks. Simultaneously, it will support the company's continued focus on its core home appliance and 3C businesses and enhance development quality. The transaction is expected to increase the consolidated net profit attributable to the parent company of the listed entity by approximately RMB 1.271 billion.

Mobile Phone Manufacturers Lower 2026 Shipment Targets

According to public media reports, several Chinese mobile phone manufacturers, including Xiaomi, OPPO, and vivo, have once again lowered their smartphone shipment targets for 2026, with brands like Honor potentially struggling to maintain growth momentum. It is reported that Xiaomi has further reduced its annual shipment expectations by approximately 30% to around 95 million units; OPPO and vivo have also lowered their annual shipment forecasts to below 90 million units.

Information indicates that the downward revision of shipment targets is primarily due to factors such as component shortages, rising costs, and capacity constraints caused by the expansion of AI infrastructure. The price of memory chips has tripled, severely squeezing the profit margins of budget smartphones.

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