Since the latter half of last year and the start of this year, The Home Appliance Circle has exclusively discovered that certain home appliance companies are hastening the shift of their market operations to the offline realm. They are now concentrating on penetrating deeper into county and township markets, while simultaneously implementing stringent price controls on online e-commerce platforms. This strategy is aimed at fully supporting the market breakthroughs of offline distributors and brick-and-mortar stores.

Written by Chang Wei

Over the past three years, the first-tier home appliance market has been rife with rumors about 'home appliance companies revitalizing offline stores and prioritizing offline channels.' The most recent speculation, closely linked to offline home appliance channels, involves repeated whispers that the 'national subsidy' policy for home appliances will give precedence to supporting offline channels.

However, the reality paints a different picture. Since last year, numerous home appliance distributors in county and township markets have found themselves ensnared in a 'decline in both sales volume and profit' morass. Over half of the channel distributors in the frontline market report feeling not just a chill but a deep freeze, with a cascade of adverse effects stemming from sluggish sales. These include dwindling operating profits, frequent breaches in product quality safeguards, and the erosion of commercial integrity.

In just six months, for many offline market home appliance distributors, the market operation dilemma extends beyond mainstream consumers abandoning physical stores for online platforms. More critically, consumer trust in the products, prices, and services offered by physical stores has taken a nosedive.

The Home Appliance Circle has learned that over the past 3-5 years, for many offline distributors in the home appliance market, support from home appliance companies or industrial policies for channel distributors and physical stores has been either 'superficial' or 'all talk and no action.' There has been a lack of a systematic, sustained, and stable revitalization plan for offline stores.

However, the home appliance market has witnessed a fresh turn since the dawn of 2026. The Home Appliance Circle has exclusively learned that representatives from first-tier, second-tier, and third- and fourth-tier home appliance companies are exploring a novel commercial approach—fully redirecting their market operation focus to offline channels.

In essence, there are two key aspects: Firstly, actively manage resource allocation to online stores, live-streaming e-commerce, content e-commerce, and interest-based e-commerce, with a particular emphasis on controlling prices to prevent online price chaos. Naturally, online platforms will still be utilized for product price listing and stabilization. Secondly, concentrate on developing offline channel specialty stores and scenario-based stores, primarily focusing on expanding physical stores in county and township markets, with an emphasis on providing quality products, profits, and policies.

Currently, several corporate actions stand out as representative. Focusing on the kitchen appliance market, Casarte and Gree are clearly directing their resources and focus offline. Casarte's Grand Kitchen is concentrating on smart scenario-based stores, with a target of 1,000 stores nationwide this year, leveraging full-scenario, multi-series, and customized solutions as breakthroughs. Gree, on the other hand, is creating specialized healthy kitchen appliance stores in township markets, with offline as its main battleground for kitchen appliance business. Meanwhile, in the air conditioning market, Aux and Electrolux are channeling their efforts into offline channels, focusing on expanding their offline distributor network. Aux Air Conditioning, for instance, recently held a national conference for offline distributors, initiating a focus on empowering channel merchants with three-dimensional marketing and service initiatives. It has even proactively regulated product prices on online channels.

At present, whether this will evolve into a collective action among numerous companies in the home appliance industry, The Home Appliance Circle believes, remains to be seen over time. However, judging by the recent actions of Haier, Midea, Gree, Fotile, and others, they are all honing in on offline channels and developing and nurturing self-operated retail service channels through scenario-based stores, experience stores, and other formats. Nevertheless, these actions are rooted in the channel strategy safety and balance of each brand company and do not signify a strategic shift towards offline physical stores.

However, with the disappearance of dividends and severe depletion of traffic on various online platforms such as online stores, video e-commerce, social e-commerce, and interest-based e-commerce, for home appliance companies, refocusing on offline physical stores and developing offline scenario-based and experience-based stores will be an inevitable trajectory. The Home Appliance Circle believes that once the trend takes shape and the wind blows, for many offline channel distributors, the key will be to return to the fundamentals of operation, enhance marketing and service capabilities, and refine the means and content of catering to user needs.

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