The first-half results from China’s leading home appliance manufacturers reveal an industry facing significant pressure.

With China’s overall home appliance market declining during the first half of 2026, the country’s major manufacturers have all felt the impact. However, their results show very different levels of resilience.

Midea has emerged as the strongest performer, maintaining revenue growth and demonstrating the benefits of its expansion beyond traditional consumer appliances. Its continued investment in industrial technology, building solutions, robotics and automation is helping to offset weakness in the core consumer market.

Meanwhile, Haier Smart Home reported lower revenue and profits, although its smart HVAC business continued to grow. The company is responding with major organisational changes, bringing product categories together to focus more heavily on complete smart-home and lifestyle solutions rather than individual appliances.

Gree also saw revenue and profit decline, with overseas sales particularly affected. However, domestic sales remained relatively resilient, underlining the strength of its core air-conditioning business and its established position in the Chinese market.

Hisense Home Appliances experienced the sharpest profit decline among the four companies. Its HVAC business faced significant pressure, although growth in refrigerators and washing machines, alongside increasing overseas sales, provided some positive signs.

The gap between the giants and smaller brands is widening

One of the most important trends emerging from the downturn is increasing market concentration. As demand weakens, the largest manufacturers are using their scale, technology investment and extensive product portfolios to protect — and in some cases strengthen — their market positions.

For smaller and mid-sized appliance brands, the challenge is becoming increasingly difficult. Competing solely on price or within a single product category may no longer be enough.

The first half of 2026 shows that the white goods industry is entering a period of major structural change. Midea is diversifying, Haier is reorganising around connected home solutions, Gree is strengthening its core business, and Hisense is pursuing international growth and product restructuring.

The current downturn may be painful, but it is also reshaping the industry. When market conditions eventually improve, the companies that continued investing in technology, innovation and long-term strategy are likely to be best positioned for the next phase of growth.