Midea Group Chairman Fang Hongbo: Xiaomi has already lost strategically in entering the home appliance industry.

Chairman and CEO of Midea Group, Fang Hongbo, replied to investors' questions at the Midea Group's 2024 annual shareholders meeting, saying that Xiaomi has already lost strategically by entering the home appliance industry. Fang explained that firstly, the home appliance industry is highly competitive with low entry barriers, having gone through multiple rounds of fierce competition, making it a "red ocean". Home appliances are electromechanical products with fixed strategies. Secondly, there is not much room for growth in the home appliance industry and efficiency improvement in the value chain. Thirdly, even if one wins, it will be a costly battle, which applies to new players like Xiaomi, Redmi, and Realme, as well as existing major players. Fang concluded by stating, "No high-tech enterprises have emerged from the home appliance industry. Whoever enters the home appliance industry now has already lost strategically. Where can you go from here?"