When will Xiaomi’s home appliance industry have its own day?
Xiaomi, an internet-based cross-border player, has long been seen as a company that stirred up the home appliance industry but failed to truly rise or shake up the existing market structure. While some of its products initially generated buzz, most of them barely made a splash. The question remains: why hasn't Xiaomi managed to establish itself in this competitive sector after years of effort?
Since 2013, when Xiaomi first entered the home appliance market with its "Millet TV," it quickly faded from the spotlight. Over the past five years, many traditional manufacturers have paid little attention to Xiaomi's next move, wondering how and when it would make an impact again. By 2018, as the new peak season approached, many in the industry were asking: Why, despite being a major player in the mobile phone market, has Xiaomi not found its place in the home appliance sector after so many years?
Whether it's Xiaomi TV, the water purifier launched by Lei Jun, or other appliances like refrigerators, air conditioners, and kitchen gadgets from Xiaomi’s ecosystem partners, they all seem to be in markets full of hype but lacking real leadership. These products often fail to stand out and soon fall into market downturns.
This highlights a key issue: Xiaomi's success in the mobile phone market was largely accidental, and its fan-driven approach and online marketing strategies are hard to replicate in other industries. In the mobile phone market, Xiaomi capitalized on a gap left by Apple and Samsung, offering high value at low prices. However, in the more stable home appliance industry, where brands like Haier, Midea, and Gree have maintained strong positions for decades, such a strategy doesn’t work as effectively.
Xiaomi has tried to expand into the home appliance sector through its ecosystem partners, aiming to benefit from the current wave of consumer upgrades. But despite its efforts, it hasn’t found a breakthrough or created real excitement. The problem lies in the fact that the Internet and smart technology alone aren’t enough to break into traditional industries. Xiaomi’s approach, while effective in phones, lacks the depth needed for long-term success in home appliances.
In recent years, companies under the Xiaomi umbrella—such as Zhimi, Yunmi, and others—have entered various sectors including home appliances, small devices, and kitchenware. At first, their designs and pricing attracted attention, but without real innovation, these products often ended up as mere imitations. As specialized manufacturers improved their own offerings, Xiaomi struggled to keep up.
Take Xiaomi TV, for example. It followed in LeTV’s footsteps, but when LeTV declined, Xiaomi didn’t capitalize on the opportunity. Instead, Sharp seized the chance and gained market share. Although Xiaomi used a low-cost strategy, it couldn’t match Sharp’s strength. Similarly, in white goods and kitchen appliances, Xiaomi's ecosystem has not led to any significant market transformation.
The core issue is that Xiaomi lacks the technical expertise and manufacturing experience needed to compete in the home appliance industry. Relying only on design and branding isn’t enough. For any company to succeed in a new industry, it needs strong product innovation and deep understanding of the market. This challenge isn’t unique to Xiaomi—it’s a common weakness among many smaller home appliance manufacturers as well.
Ultimately, Xiaomi’s journey in the home appliance industry shows that crossing over from one sector to another is far more complex than it seems. While it may have disrupted the mobile phone market, the same approach doesn’t translate easily to home appliances. The future of Xiaomi in this space will depend on whether it can overcome these challenges and truly innovate.
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