Over the past two years, "existing market competition" has emerged as a buzzword within the household appliance industry. Many companies have redirected their business focus towards product replacement, seeking opportunities amidst a landscape of homogenized competition. However, feedback from frontline dealers reveals a critical oversight: while deepening engagement in existing markets is essential for survival, tapping into emerging markets is the key to navigating business cycles and achieving sustainable growth.

Written by Hua Xin

Peering through the industry haze, it becomes evident that the primary drivers of volume growth and performance improvement in today's household appliance market are not the sporadic replacement demands within existing markets, but rather the burgeoning consumer base of the younger generation in emerging markets. This reality compels household appliance manufacturers to reassess their market strategies and recalibrate their business priorities—the existing market serves as a company's "foundation," while emerging markets act as its "growth engine."

Recently, several frontline household appliance retailers reached a consensus during discussions about their 2026 business strategies with Household Appliance Circle: expansion within existing markets has led to a "high-input, low-output" predicament, with fragmented consumer demands and significant segment differences hindering economies of scale. In contrast, while emerging markets no longer offer the broad, easy-growth opportunities of yesteryears, they harbor more valuable structural opportunities, becoming pivotal for manufacturers to overcome growth bottlenecks.

In 2026, the competitive dynamics of the household appliance industry have subtly shifted. Manufacturers must break free from the "existing market competition" mindset and reconstruct their operational capabilities within emerging markets to seize the initiative in the new cycle.

From an industry development standpoint, 2026 marks not a time for household appliance manufacturers to "prioritize existing markets over emerging ones," but rather a strategic inflection point for "defending the existing while exploring the emerging." For household appliance dealers across tier-one, tier-two, and tier-three markets, especially direct retailers, rather than engaging in fierce competition within the red ocean of existing markets, it is wiser to allocate more resources to emerging markets. By accurately capturing new demands and forging differentiated competitive advantages, they can inject fresh momentum into corporate growth.

Why?

Why can emerging markets become the "key to breaking the deadlock" in the household appliance industry? Household Appliance Circle believes this phenomenon is propelled by the evolution of consumption patterns and the reconfiguration of market logic. Compared to existing markets, the three core strengths of emerging markets determine their inevitability as a growth anchor in the new cycle.

Firstly, the "novelty" of the consumer group dictates the malleability of demand and the potential for explosive growth. The emerging consumer group predominantly comprises young people, who are not only a new force in household appliance consumption but also trendsetters in new consumption concepts. They exhibit a high degree of convergence in their demands for smart technology, health functionalities, and scenario-based experiences, and are open to embracing new brands and products, readily fostering word-of-mouth effects. This provides a natural advantage for manufacturers in promoting new products and penetrating the market.

Secondly, the "upgrade" in consumption concepts propels the resurgence of product value. While the emerging group is price-sensitive, they do not prioritize low prices exclusively. They place greater emphasis on product performance, quality, and service experiences. This consumption logic of "quality and brand first" aligns seamlessly with the transformation direction of the household appliance industry towards "high-end, intelligent, and scenario-based" products, offering breakthrough opportunities for high-quality manufacturers.

Thirdly, the "concentration" of consumption scenarios reduces the cost and difficulty of market expansion. Emerging demand is primarily concentrated in renovation scenarios following new home deliveries, with concentrated consumer demands and decision-making cycles, easily fostering bandwagon effects. Manufacturers can achieve efficient conversions by precisely targeting scenarios and deepening service offerings.

In contrast, the expansion of existing markets over the past two years has underscored numerous challenges: fragmented consumer groups, encompassing both high-end replacement demands and basic necessity replacements, making it difficult to achieve scalable operations; diverse demand levels, with clear barriers between high-, mid-, and low-end markets, making it arduous to deeply cultivate consumer segments and resulting in significant resource investment by manufacturers without commensurate returns. This "involutionary" competition not only drains corporate energy but also stifles industry innovation vitality.

On What Basis?

Currently, household appliance manufacturers must soberly recognize that emerging markets are no longer the "gold mine" of the past, characterized by "high investment, high growth, and wild expansion," and cannot sustain the growth aspirations of all household appliance manufacturers.

However, for retailers with product innovation capabilities, service capabilities, and scenario operation capabilities, emerging markets remain a "value blue ocean" worth deeply cultivating: they can not only drive short-term scalable shipments but also help manufacturers lock in future core consumer groups and build long-term competitive advantages.

So, how can household appliance manufacturers seize the initiative in emerging markets in 2026? The core answer lies in: abandoning extensive expansion and shifting towards "precise, empathetic, and scenario-based" direct-to-user operations, seizing the core scenarios of newly delivered properties with "last-mile" precision. Among these, three key strategies are indispensable.

Firstly, private domain deep cultivation is essential to lock in core scenario traffic. Newly delivered communities are the epicenters of emerging demand. Manufacturers should eschew blind "door-to-door canvassing" and instead focus on community groups, deepening private domain operations: win over community opinion leaders (group admins), establish trust through professional and neutral content, avoid aggressive or slanderous marketing, and convert potential demand into actual orders through group interactions and scenario experiences.

Secondly, product upgrades are crucial to match demand with high-tech premium offerings. The core demands of the emerging group are "quality and experience." Manufacturers need to abandon low-end, homogenized products and concentrate on high-tech premium products from major brands, aligning with young people's consumption preferences through intelligent, healthy, and energy-efficient product advantages to forge differentiated competitiveness.

Thirdly, marketing innovation is vital to create differentiated service experiences. Competition in emerging markets has long transcended products themselves and shifted towards service competition: from early-stage scenario design and product recommendations to post-sale installation and after-sales service, manufacturers need to captivate users with "empathetic" services, build long-term loyalty through personal charm, and achieve "one-time consumption, lifetime binding."

The experience of a frontline household appliance retailer offers invaluable insights: the core of operating newly delivered communities is "dedication" rather than "force": the boss gets personally involved, deeply cultivates community groups, and stays close to users; the content is professional and detailed, balancing practicality and neutrality; the service is thoughtful and considerate, breaking the "buyer-seller relationship" and forging a "partnership." This business model is precisely the way to break the deadlock in emerging markets.

Standing at the industry crossroads of 2026, the growth logic of the household appliance industry has transitioned from "existing market competition" to "emerging market breakthroughs." The existing market is the "survival baseline" for manufacturers, necessitating continuous deep cultivation and a solid foundation; while emerging markets are the "growth ceiling" for manufacturers, requiring proactive布局 (layout) and precise targeting.

For all household appliance manufacturers, Household Appliance Circle believes that only by balancing the relationship between existing and emerging markets, breaking free from fixed mindsets, and reconstructing operational capabilities within emerging markets with users at the core and scenarios as the grasp (focus), can they navigate industry cycles and achieve high-quality growth. This is not only a business strategy for 2026 but also a development consensus and key to breaking the deadlock for the household appliance industry in the coming years!

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