CNBC AI News | May 19, 2025 — In a revealing interview with *LatePost*, Midea Chairman Pou Mou-Hongbo (Fang Hongbo) offered blunt insights into China’s rapidly shifting home appliance industry, spotlighting Xiaomi’s disruptive ambitions under its multi-layered growth strategy.
The candid exchange turned particularly pointed when reflecting on a prior meeting between Midea executives and Xiaomi President Lu Weibing. As Mou-Hongbo recounted, “Xiaomi presented a roadmap outlining world No.1 smartphone sales within three years, Top 5 global automotive position in a decade, and domestic appliance market dominance in the same three-year timeframe.”
Facing such audacity, the Midea leader couldn’t help but question: “I almost asked – among Midea, Gree, and Haier… which throne are you attempting to usurp?” The rhetorical challenge underscores tensions rising between establishment giants and new-era disruptors in China’s $400 billion home appliance market.
Mou-Hongbo framed Xiaomi’s total market invasion – spanning air conditioners, washing machines, and beyond – as a tactical threat demanding vigilance, while maintaining strategic composure. “When any contender attacks on all fronts, you must adapt operationally,” he observed, before offering tempered praise: “For years, our industry had settled into equilibrium. Xiaomi’s entrance injects welcome dynamism.”
Beneath the competitive posturing lies meticulous analysis. Midea’s strategy arm has completed three comprehensive reports totaling 100,000 words scrutinizing Xiaomi’s business mechanics. “Our culture enables rapid evolution,” Mou-Hongbo explained regarding the intellectual openness, “but we’re equally focused on nurturing capabilities they cannot duplicate.”
This revelation surfaces as Xiaomi accelerates physical execution. New reports confirm its Wuhan smart appliance complex has completed electrical grid integration 30 days ahead of schedule, marking significant progress toward self-sufficient production of complete home appliance lines including refrigerators, air conditioners and washing machines – the final piece in establishing vertical integration parity with legacy manufacturers.
The Wuhan campus, established last August as Xiaomi’s third megafactory site following smartphone and automotive plants, strategically positions the company to leverage smart manufacturing economies of scale previously exclusive to conglomerates. Industry watchers now debate whether Xiaomi’s cross-sector integration will prove visionary synergy or overextended overreach.
Market analysts suggest this showdown between old-guard efficiency and new-wave digital-first strategy could redefine industry paradigms, compelling traditional players to reexamine supply chain resilience and consumer engagement strategies simultaneously. As one expert noted off-camera: “This isn’t just about appliances anymore. It’s a microcosm of China’s broader corporate evolution battle – established scale versus tech-fueled agility.”
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/422.html
