Analysis of Midea Group's Overseas Brand Share and Strategy for Enhancing Global Competitiveness

According to the latest data, Midea Group’s own-brand share in the overseas home appliance market is only about 3%[1]. Although Midea’s overseas revenue reached 169.03 billion yuan in 2024, accounting for 41.5% of total revenue, a significant proportion is still based on the original equipment manufacturing (OEM) model, with the own-brand (OBM) business accounting for about 45%[2]. Compared with Haier Smart Home’s overseas revenue accounting for over 50% of total revenue, Midea still has much room for improvement in brand internationalization.

From the perspective of the global market pattern, the overseas home appliance market is highly fragmented and has long been dominated by traditional giants such as Whirlpool, Electrolux, Samsung, and LG. Although Chinese brands are competitive in terms of price, they still face challenges in consumer brand awareness and trust[1].

Home appliances have both industrial and consumer attributes, and brand awareness directly determines product premium and market share. In European and American markets, Chinese home appliances with the same configuration are priced lower than Japanese and Korean brands, but consumer trust is still insufficient. The mature multi-level brand matrix model in China—“low-end brands for defense, main brands for volume, high-end brands for premium”—is difficult to simply replicate in overseas markets[1].

Overseas market channels are fragmented and complex, and channel partners generally have strong bargaining power. The U.S. market is dominated by large supermarkets and specialty stores (Home Depot, Lowe’s, Best Buy, etc.), and Chinese enterprises can only accept price reductions and harsh terms; the European market is dominated by regional channel partners, which need to be broken through one by one; emerging market channels are more fragmented, making standardized operations difficult[1].

Midea’s revenue in the Americas is about 33.5 billion yuan, accounting for about 8.2% of total revenue. It performs relatively well in other Asian regions, but its penetration rate in mature markets such as Europe still needs to be improved[2].

Midea already has three major overseas brands: Toshiba, Midea, and Comfee. It should further clarify the positioning of each brand: Toshiba focuses on the high-end market, emphasizing Japanese quality and technological innovation; the Midea brand covers the mid-end market, focusing on cost-effectiveness and smart technology; Comfee is positioned in the entry-level market as a pioneer in market penetration. It is recommended to learn from the focused strategy experience of Daikin Industries, firmly deepen the main air-conditioning business, and gradually extend to full categories[1].

Midea has established cooperative relationships with sports organizations and events such as Manchester City Football Club, the Asian Football Confederation (AFC), and the Copa Sudamericana. It should further expand the global coverage of sports marketing. At the same time, strengthen social media operations and content marketing, establish overseas brand official websites and social media matrices, and reach target consumers through localized content. In the first half of 2025, the number of new overseas registered users of smart home applications exceeded 1.8 million, with an average monthly active user growth of over 70%, indicating that digital reach has achieved results[3].

Midea already has more than 25,000 overseas retailers joining its sales platform. It should further sort out the list of global key customers and promote visualized and data-driven channel operations. In the U.S. market, consider establishing strategic cooperation or exclusive agency relationships with large retailers; in the European market, need to formulate differentiated channel strategies according to the characteristics of different countries; in emerging markets (such as Southeast Asia, Latin America, Africa), should accelerate channel sinking and localized service network construction.

Midea is accelerating the construction of overseas bases in Thailand, India, Brazil, etc. It should continue to promote the “region-for-region” model, improve localized production and delivery capabilities, and reduce tariffs and logistics costs. As of the end of June 2025, Midea has more than 40,000 overseas employees, which provides human resource support for localized operations[3].

Develop marketable products according to the consumption habits and demand characteristics of different regional markets. Especially in emerging fields such as smart home, energy conservation and environmental protection, and health appliances, increase R&D investment to drive brand upgrading through technological innovation. It is recommended to establish R&D centers overseas, absorb local technical talents, and improve product localization adaptation capabilities.

Make full use of Midea’s strategic advantage of “walking on two legs” (ToB and ToC), and extend the synergistic effect of businesses such as smart building technology, robotics, and automation to overseas markets. By providing overall solutions rather than single product sales, improve customer stickiness and brand premium capabilities.

Toshiba Home Appliances (TLSC) turned around from loss to profit within about three years after acquisition, which proves Midea’s global brand integration capability. In the future, we can continue to pay attention to overseas targets with brand value or channel resources, and quickly gain market share and brand awareness through mergers and acquisitions.

Build a supply chain collaboration system between domestic and overseas factories, promote global capacity planning as a whole, optimize supply chain efficiency and cost structure, and enhance global competitiveness.

The current situation of Midea Group’s overseas brand share of only 3% not only reflects the limitations of its historical development path but also reveals huge room for improvement. Facing the competition in the “deep water zone of going overseas” in 2026 and beyond, Midea needs to carry out systematic upgrades in brand building, channel deepening, product innovation, and localized operations. Through the “brand + product + channel + service” four-in-one strategic layout, Midea is expected to realize the fundamental transformation from “scale sales” to “brand deep cultivation” in the next five to ten years, and truly grow into a home appliance technology group with global influence.

[1] Sina Finance - Midea, Haier, Hisense, TCL: A War That Determines the Fate of the Next Decade (https://finance.sina.com.cn/cj/2025-12-31/doc-inhervys6699650.shtml)

[2] 21st Century Business Herald - Home Appliance Industry Competition Pattern Changes: Midea Steady Growth, Xiaomi Rising, Gree Under Pressure (https://www.21jingji.com/article/20250912/herald/535aed1184987af408c745cc9c2a2f03.html)

[3] HKEX Announcement - Midea Group Co., Ltd. Interim Report 2025 (https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0829/2025082902375_c.pdf)