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Yuke Xie

When Chinese smartphone maker Xiaomi launched its first electric vehicle (EV) in March 2024, few believed it could rival industry leaders like Tesla, BYD, Xpeng and Li Auto.
After a surprisingly strong debut and with the company’s EV segment poised to break even this year, however, the Beijing-based firm is now embarking on an ambitious push into another sector to challenge established competitors: the home appliances market.
Partly fuelled by Beijing’s aggressive subsidies to boost consumption, Xiaomi – which sold its first washing machine in 2018 – posted a nearly 114 per cent growth in its large home-appliances segment in the first quarter.
Its shipments of air conditioners and refrigerators both surged 65 per cent from a year ago, while shipments of washing machines doubled, according to a filing to the Hong Kong stock exchange in May.
Xiaomi’s executives reportedly aim to break into the industry’s top three in three years, banking on the company’s rapid rise. Its large home-appliance sales jumped over 56 per cent last year, outpacing the three leading players in the sector: Midea’s sales rose about 9 per cent, Haier’s increased less than 4 per cent, while Gree’s declined more than 4 per cent.
The company is targeting a market that Midea had valued at over 854 billion yuan (US$119 billion) in 2023 – or 36.5 per cent of the global total – making it the world’s largest. The Chinese market is set to grow at a compound annual rate of over 5 per cent from 2023 to 2027, outpacing the US at about 2 per cent and Europe at 1.4 per cent, according to Midea.

Xiaomi’s ambitions extend beyond China’s borders.
In March, the company announced plans to launch large home appliances internationally, aiming to offer users worldwide a more connected home experience. Around the same time, Xiaomi opened its first retail store in Japan, with plans to introduce larger items, such as washing machines and refrigerators, in the second half of the year, according to local media reports.
While Xiaomi has experienced some early success in its home market, industry observers caution that it faces a long list of challenges in competing with established players.
Xiaomi’s expansion comes as Beijing rolls out generous subsidies to stimulate consumer spending. Central authorities have allocated 162 billion yuan out of a total of 300 billion yuan in subsidies budgeted for this year – doubling last year’s figure – to support purchases of home appliances, smartphones and electric vehicles.
This funding helped lift retail sales of consumer goods to 4.1 trillion yuan in May, marking a 6.4 per cent year-on-year increase and the fastest growth since last year, according to the Ministry of Commerce. Sales of home appliances surged 53 per cent.
However, some analysts said the subsidies may have front-loaded demand, raising concerns that Xiaomi’s growth could slow once government support diminishes.

HSBC said in a note on Monday that it had adopted a “slightly more conservative” outlook for Xiaomi’s Internet-of-Things business in the second half of this year, although it maintained that the segment remained solid and did not rule out the possibility of renewed subsidy policies in the coming months.
Moreover, despite its rapid growth, Xiaomi still lags behind the industry’s major players in scale.
S&P Global Ratings estimated that the company’s large appliance sales amounted to no more than 20.8 billion yuan in 2024 – a number equivalent to less than 10 per cent of Haier’s home appliance sales, under 6 per cent of Midea’s, and below 14 per cent of Gree’s.
“It’s worth noting that Xiaomi has traditionally focused heavily on online channels, with limited offline presence, although it is addressing this in China, having over 16,000 stores by the end of March, with a target of reaching 20,000 by the end of 2025,” said Dan Baker, a senior equity analyst at Morningstar.
“While Xiaomi is likely to ramp up its market share over time, we do not foresee a material threat to incumbents like Midea and Haier, as they have successful track records in launching premium home-appliance products and expanding globally,” he added.
Xiaomi “is expected to capture market share from smaller competitors, particularly those focusing on low-priced products and with less established distribution networks”, said Cathy Lai, a credit analyst at S&P Global Ratings. But the company lacked a competitive edge in supply chain and hardware manufacturing, she said.

Xiaomi still outsources production of large home appliances – unlike Midea, Haier and Gree, which have in-house operations and deeper research and development expertise, according to Lai. However, she noted that Xiaomi recently established its own factory for home appliances.
“Longer term, if Xiaomi ramps up its in-house manufacturing and achieves better cost-effectiveness and incremental product differentiation, it could improve its competitiveness in home appliances,” she added.
Xiaomi’s strong brand awareness, especially among younger consumers, provides an additional advantage, according to Chris Pereira, founder and CEO of iMpact, a brand consulting company in Singapore.
“What Xiaomi has done particularly well is framing home appliances as part of a broader smart living experience,” he said.
“While players like Haier and Midea have deeper supply chains and legacy credibility, Xiaomi’s marketing strategy – centred around community engagement, tech-first storytelling, and rapid iteration – positions it as a legitimate challenger not just in home appliances but across the entire consumer electronics spectrum.”


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Despite early success at home, industry watchers caution that the company faces significant challenges in competing with established players


Despite early success at home, industry watchers caution that the company faces significant challenges in competing with established players.


Xiaomi guns for home appliances after disrupting smartphones and EVs. Will it succeed?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Despite early success at home, industry watchers caution that the company faces significant challenges in competing with established players

Despite early success at home, industry watchers caution that the company faces significant challenges in competing with established players