This week, the home appliance industry stands at a critical juncture of high costs, structural upgrades, and ecosystem restructuring. Short-term raw material price hikes are squeezing profits and accelerating market consolidation, while long-term AI integration, premium transformation, and global expansion will serve as core engines for leading firms to break through growth bottlenecks. Meanwhile, quality control and profitability restoration remain mid-to-long-term challenges.

Currently, soaring raw material costs are putting collective pressure on air conditioner manufacturers. International copper and aluminum prices continue to climb, with LME three-month copper nearing record highs and aluminum at four-year peaks. As air conditioners rely heavily on copper (accounting for 22%-25% of costs), the "aluminum-for-copper" cost-reduction strategy has stalled due to rising aluminum prices. Faced with cost pressures, air conditioner firms are trapped in a dilemma: raising prices risks losing market share, while not doing so erodes profits. Domestic production has declined while exports grew, intensifying cost pass-through and pricing negotiations.

Simultaneously, the online robot vacuum market sees declining volumes but rising prices, with intensified differentiation among leading brands. Online sales dropped 21.18% YoY in the first four months of 2026, while average prices rose 3.58%, reflecting proactive structural adjustments. Ecovacs, Roborock, and Dreame maintained their top-three positions with positive growth, while Yunmi and Xiaomi saw sharp market share declines. Xiaomi's floor-washing robots Trapped in a dilemma of both quantity and price decline (faced declining volumes and prices), while Yunmi struggled to retain market share despite a slight price increase. The market has shifted from price wars to technology and value competition, with high-end AI models driving growth amid weak demand for low-end products.

Cross-industry AI collaborations see giants expand ecosystems and global reach. Midea and ZTE signed a strategic partnership focusing on smart home AI integration, computing power, and digital energy to upgrade from hardware to system-level intelligence. Haier accelerated globalization with a groundbreaking ceremony for its Thailand central air conditioning base, aiming to become Southeast Asia's largest smart manufacturing hub. TCL Electronics doubled Q1 net profit, with overseas revenue accounting for 61% and Mini LED TV exports surging. Additionally, Haier and Hisense CEOs attended a Sino-US dinner to promote international industry cooperation.

Cross-industry synergies coexist with industry concerns. Gree's Dong Mingzhu became Zeekr's quality experience officer, deepening home appliance-automotive integration. At the industry level, Zhongshan inspections found nearly 400 non-compliant home appliances, particularly kitchen appliances. E-commerce platforms face profit pressures, with JD.com's Q1 net profit halving and Pinduoduo's 2025 net profit declining for the first time, as channel costs and compliance pressures rise.

Soaring Copper and Aluminum Prices Leave Air Conditioner Firms in a Bind

International copper prices have surged again, with LME three-month copper rising 0.6% to $13,646/ton, nearing the January 29 record high of $14,500/ton. Similarly, LME aluminum futures hit $3,672/ton in mid-April, a four-year peak.

Data shows Chinese residential air conditioners consume about 10% of the nation's total annual copper usage. As a highly copper-dependent category, copper accounts for 22%-25% of air conditioner costs, making price fluctuations critical for the industry. The "aluminum-for-copper" trend faces headwinds as rising aluminum prices undermine cost-reduction efforts.

2026 Online Robot Vacuum Market: Declining Volumes, Rising Prices

The online robot vacuum market has cooled significantly this year. Aowei Cloud data reveals just 952,800 units were sold online in the first four months of 2026, a 21.18% YoY drop, though average prices rose 3.58% to ¥3,412, reflecting structural adjustments. Leading brands saw sharp differentiation: Ecovacs, Roborock, and Dreame maintained their top-three online positions with 29.89%, 22.22%, and 12.40% market shares, respectively, all achieving positive growth.

However, Yunmi and Xiaomi saw significant share declines. Aowei Cloud data shows Yunmi's online sales market share dropped 4.95 percentage points to 10.15% in the first four months, while Xiaomi's plummeted 7.83 points to 11.80%. Despite maintaining a basic user base with its ¥2,205 low-priced floor-washing robot, Xiaomi's average price fell 2.67%, Trapped in a dilemma of both quantity and price decline (facing declining volumes and prices). Yunmi's average price rose slightly (2.14%) to ¥3,568 but failed to halt share losses.

ZTE and Midea Group Join Forces on AI

ZTE and Midea Group signed a comprehensive strategic cooperation agreement covering smart home ecosystems, digital energy, computing infrastructure, and smart manufacturing. In smart homes, they will integrate central controls, wearables, and appliances to enable cross-device AI services and scenario-based scalability. For computing and digital energy, they will combine ZTE's data center network strengths with Midea's precision temperature control and energy storage systems, focusing on green data center collaboration and emerging sectors like large-scale and industrial energy storage.

Fang Hongbo, Chairman and CEO of Midea Group, stated the partnership will break industry boundaries, integrate innovation resources, and upgrade from "hardware intelligence" to "system intelligence" and from "single products" to "ecosystem collaboration," building a full-chain ecosystem spanning home terminals to industrial infrastructure and computing power to green energy.

Haier and Hisense CEOs Attend Sino-US Welcome Dinner

CCTV footage showed U.S. executives like Tim Cook, Jensen Huang, and Elon Musk attended a May 14 Sino-US welcome dinner at Beijing's Great Hall of the People, alongside Chinese entrepreneurs including Haier Group Chairman Zhou Yunjie and Hisense Group Chairman Jia Shaoqian.

Other invited Chinese business leaders included Xiaomi Chairman Lei Jun, Lenovo Chairman Yang Yuanqing, and ByteDance CEO Liang Rubo. The event was seen as fostering face-to-face exchanges to promote Sino-US business cooperation.

Gree's Dong Mingzhu Appointed Zeekr Quality Experience Officer

Geely Holding Group Chairman Li Shufu visited Gree Electric's headquarters, where executives discussed core technology innovation, brand globalization, and industrial dedication. Li Shufu invited Dong Mingzhu to become Zeekr's quality experience officer, presenting her with an appointment certificate.

In March 2026, Dong became a Zeekr 009 Glorious owner, with Li Shufu personally delivering the vehicle. Accompanied by Dong, Li toured Gree's tech exhibition hall, learning about innovations in consumer appliances and industrial equipment. Li praised Gree's commitment to independent innovation and manufacturing, acknowledging its breakthroughs in key technologies.

Haier Builds Southeast Asia's Largest Central Air Conditioning Base

On May 12, Haier laid the foundation for its central air conditioning smart manufacturing base in Rayong Industrial Park, Thailand. With over ¥1 billion investment and 180-acre site, it is Haier's first overseas AI-powered central air conditioning factory and Southeast Asia's largest. Since entering Thailand in 2002, Haier has achieved 92% brand awareness, topping the white goods market in overall share, air conditioner sales for five consecutive years, and leading refrigerators and washing machines.

In September 2025, Haier's Chonburi air conditioner base in Thailand commenced operations with 6 million annual capacity, covering 14 product categories and thousands of models, becoming China's largest and most digitized residential air conditioner base in Southeast Asia. The new Rayong base represents a comprehensive upgrade in scale, intelligence, and sustainability, rather than a simple replication of residential models.

Meiling Small Appliances Win 80,000-Unit Geely (Geely) Procurement Contract

Meiling's circulating fans won an 80,000-unit employee welfare tender from Geely Holding Group in 2026. This large-scale procurement reflects Geely's recognition of Meiling's product quality, user experience, and brand reputation, showcasing Meiling's comprehensive competitiveness across categories.

After 40+ years in home appliances, Meiling has expanded beyond single categories to offer a full white goods portfolio including refrigerators, air conditioners, washing machines, kitchen appliances, small appliances, and low-temperature storage. Leveraging multiple intelligent manufacturing bases and national R&D platforms, Meiling achieves technological, production, and quality autonomy, strengthening overall competitiveness.

BSH Home Appliances Accelerates China Market Adaptation

At the 2026 BSH Home Appliances Client Ecosystem Conference, BSH Greater China President Song Linbing stated long-term success in China requires adapting to local innovation speeds and proactive change. Key strategies include accelerating innovation through localized decision-making and open R&D ecosystems, organizational upgrades with localized management, and a customer-centric approach driving growth through core clients and proprietary channels.

Newly appointed BSH Greater China Senior VP and CSO Guo Zhiping emphasized product innovation to reshape market competitiveness, suite-based solutions for home scenarios, omnichannel marketing for online-offline synergy, and AI-powered intelligent development. He highlighted BSH's commitment to O2O livestreaming to convert online traffic into offline sales while expanding retail networks and store efficiency.

Samsung Home Appliances to Clear China Inventory in Six Months

In early May, Samsung Electronics announced it would exit China's home appliance retail market. A Samsung TV executive revealed the sole current focus is clearing channel inventory within 3-6 months, signaling a swift retreat from China's home appliance sector.

In 2025, Samsung TV held just 0.67% online and 3.09% offline market share in China, with annual sales of ~300,000 units. Yonhap News reported Samsung's visual display and home appliance divisions incurred combined losses of ~₩200 billion (¥926 million) in 2025, marking their first full-year loss in 34 years in China.

Daikin Residential Central Air Conditioning Prices to Rise 3%-5% in June

Daikin China announced a 3%-5% price hike for residential central air conditioning supplies starting June 1, citing soaring raw material costs and R&D/manufacturing expenses from product upgrades. The company aims to maintain quality standards and supply reliability while providing high-quality products and services.

Global copper prices have surged again driven by China's recovering demand and supply risks, impacting copper-intensive products like residential and central air conditioners. Many firms will likely raise factory prices through product upgrades in the coming period.

DJI Launches ROMO2 Series Robot Vacuum-Mop

DJI unveiled its AI-powered ultra-wide robot vacuum-mop ROMO2 series, featuring P2 and A2 models with AI smart cleaning and ultra-wide swing technology. The series uses a next-gen AI perception system and radar-adaptive ultra-wide mechanical arms to clean 4.5cm wider than standard models, with 36,000Pa suction power supporting full-scenario modes like sweep-then-mop and intelligent liquid avoidance.

The base station employs four-way high-pressure water jet self-cleaning and nanoscale antibacterial materials, claiming "year-round maintenance-free" operation. Pricing starts at ¥5,999 for the ROMO P2 water tank version and ¥6,499 for auto water refill, while ROMO A2 versions cost ¥5,499 and ¥5,999, respectively. Sales begin June 11.

Pop Mart Says Small Appliance Revenue Negligible

Pop Mart management stated on a recent earnings call that small appliances contribute minimally to overall revenue. The nascent home appliance business won't follow traditional models but will integrate small appliances with lifestyle, IP, and trendy toy cultures as key supplementary categories.

Earlier, Pop Mart launched two limited-edition (999 units each) Labubu refrigerators priced at ¥5,999, which sold out instantly and resold for tens of thousands on secondary markets. Other small appliances are expected to launch before June 18 this year.

Bear Electric Says Baidu Collaboration Yet to Launch Products

An investor asked Bear Electric about the lack of product launches from its Baidu partnership, inquiring if the project had terminated. Bear Electric responded on its interactive platform that the project progresses smoothly and will accelerate product rollouts, with no major short-term impact on performance.

In March, Bear and Baidu announced a ¥100+ million AI strategic cooperation over three years, leveraging Baidu's ERNIE Bot 5.0 and AI cloud capabilities to establish a long-term "AI+home appliances+smart life" partnership. Bear's core categories (air fryers, health pots, rice cookers, etc.) will evolve with end-to-end voice interaction (ASR+LLM+TTS) for low-latency control and natural human-machine interaction, though no products have launched yet.

Japanese Motor Giant Nidec Exposed in Massive Falsification Scandal

Japanese motor giant Nidec was revealed to have engaged in over 1,000 cases of unauthorized design changes and falsified testing data for home appliance motors and automotive parts. Internal investigations found ~97% involved unauthorized mold updates or manufacturing/design changes without client consent, with ~3% involving test data tampering and improper origin labeling.

The scandal links to Nidec's 2025 ¥250 billion financial falsification, attributed to systemic violations from a high-pressure corporate culture. Nidec has established an external investigation committee to complete inquiries by August.

Pinduoduo's 2025 Revenue Growth Slows to 9.7%

Pinduoduo reported 2025 total revenue of ¥431.846 billion, up 9.7% YoY, a sharp deceleration from 2024's 59% growth. More concerning for investors was profitability: 2025 net profit attributable to shareholders fell 12% YoY to ¥99.364 billion, marking Pinduoduo's first full-year profit decline since listing.

In 2025, Pinduoduo's operating costs reached RMB 188.802 billion, up 23% year-on-year, nearly double the growth rate of its revenue. Fulfillment, server, and payment expenses increased across the board, while R&D expenses surged by 30% to RMB 16.5 billion. In April 2026, the State Administration for Market Regulation, in conjunction with seven departments, imposed a maximum penalty of RMB 1.522 billion on Pinduoduo for fines and confiscations.

JD.com's net profit halved in Q1 2026

JD.com released its Q1 2026 results: revenue reached RMB 315.7 billion, up 4.9% year-on-year; net profit attributable to the parent company was only RMB 5.1 billion, a sharp decline of 53.21% from RMB 10.9 billion in the same period last year, effectively halving. Despite selling more, profits decreased—where did the money go? The answer is unequivocal: it was burned by the emerging food delivery business.

Behind JD.com's halved Q1 net profit, new business revenue fell by nearly RMB 6.3 billion quarter-on-quarter, with the operating loss rate soaring to 164.9%. Specifically, JD.com's business primarily comes from three segments: JD Retail, JD Logistics, and New Businesses. JD Retail revenue was RMB 268.588 billion, up slightly by 1.80% year-on-year; JD Logistics revenue surged by RMB 60.581 billion, growing 28.99%; New Business revenue was RMB 6.279 billion, up 9.14% year-on-year. In Q4 last year, New Business revenue was RMB 14.1 billion, but it dropped to RMB 6.279 billion in Q1, a quarter-on-quarter decline of 55.5%.

LG Electronics Releases 2025 and Q1 2026 Financial Reports

LG Electronics released its 2025 fiscal year annual report and Q1 2026 fiscal year performance report. Total operating revenue for the year was KRW 89.20 trillion, up 1.68% year-on-year; operating profit was KRW 2.48 trillion, down 27.53% year-on-year. Revenue for Q1 this year was KRW 23.73 trillion, with an operating profit of KRW 1.67 trillion.

The company stated that the profit decline was mainly due to pressure on its panel and component businesses, coupled with sustain increasing (continuous increases in) investment in AI-related technologies. As of the end of 2025, consolidated total assets were KRW 68.62 trillion, and shareholders' equity was KRW 28.55 trillion.

TCL Electronics' Q1 Net Profit Doubles

TCL Electronics announced its Q1 2026 report, with revenue of HKD 29.225 billion, up 15.3% year-on-year; net profit attributable to the parent company was HKD 359 million, a significant increase of 123.6%. The strong performance was mainly driven by the globalization and premium transformation of its TV business, along with pre-stocking demand for the USA-Canada-Mexico World Cup, which shifted shipment schedules significantly earlier.

In terms of structure, overseas revenue accounted for 61% of the company's total, remaining the primary growth engine. Display business revenue was HKD 19.523 billion, up 19% year-on-year, with large-size TV revenue accounting for 57.2% of the total. The premium trend was notable: shipments of 65-inch and larger models rose to 32.6%, 75-inch and larger models reached 17.1%, and global shipments of Mini LED TVs doubled, growing 102.1%, with overseas Mini LED shipments surging 178.3% year-on-year.

Nearly 400 Home Appliance Models Fail Inspection in Zhongshan Market

The Zhongshan Market Supervision Administration issued a notice on the 2025 product quality supervision and inspection of seven major categories, including daily use and textiles: a total of 1,742 market entities (manufacturers and distributors) were inspected, with 2,813 products sampled across seven categories, including daily use and textiles, and electronic appliances. After inspection, 2,274 products passed, while 539 failed, resulting in a failure rate of 19.2%.

The results showed significant issues with home appliances: 394 models failed, accounting for 73.1% of the total. Failed electronic products included 67 models found in offline inspections, 94 models in online inspections, and 233 models in production-area inspections. These primarily included range hoods, gas stoves, water purifiers, water heaters, induction cookers, electric pressure cookers, blenders, disinfection cabinets, electric heaters, electric fans, and electric kettles.

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