Xiaomi Ramps Up the Pressure in China’s Smart Air Conditioner Market as Online Sales Surge

Xiaomi Shakes Up China’s Air Conditioner Market with Digital-First Approach

Xiaomi is making waves in the Chinese home appliance sector, rapidly catching up to the long-standing industry leaders with its latest air conditioning solutions. According to Q2 2025 reports, Xiaomi has firmly secured the number three position in China’s online air conditioner market, grabbing a substantial 16.2% share and closely challenging Gree, a staple in Chinese homes.

Impressive Growth Reflected in Q2 Online Sales Data

The monthly figures tell an exciting story of Xiaomi’s momentum. In April, Xiaomi’s online market share stood at 14.25%. By May, it had surged to 17%, effectively narrowing the gap with Gree, which slipped to 17.16%. June saw a minor retreat for Xiaomi to 16.5%, while Gree only slightly improved to 17.27%. Meanwhile, market leader Midea continues to hold the top spot but saw its advantage decline from 23.45% in April to 22.18% by June.

Digital-First Strategy Sets Xiaomi Apart

Unlike established appliance giants that rely on decades of physical retail dominance and deep brand loyalty, Xiaomi has embraced a digital-native strategy from the start. Leveraging robust e-commerce platforms and social media visibility—such as flash sales on JD.com and viral promotions on Weibo—Xiaomi meets its tech-savvy consumer base exactly where they are: online. This has allowed the company to grow rapidly without the constraints of traditional retail channels.

Building Trust in a Competitive Market

Despite Xiaomi’s aggressive growth, overtaking legacy brands like Gree and Midea is no small feat. These industry titans have an entrenched presence and generations of trust among consumers—a critical factor for essential home appliances. In the battle for the best air conditioners during China’s sweltering summers, reliability and brand reputation can tip the scales.

Smart Home Integration: A Key Xiaomi Advantage

What truly differentiates Xiaomi is its robust smart home ecosystem. Xiaomi’s air conditioners integrate seamlessly with other smart devices—users can control air quality and temperature via their Xiaomi smartphones, receive updates from smart speakers, and manage energy efficiency through the Xiaomi Home Hub. This interconnected experience resonates deeply with younger consumers, who value convenience, automation, and unified tech solutions.

Strategic Vision and Future Prospects

Looking ahead, Xiaomi’s Group President Lu Weibing has set a bold target: attaining a top-two position in China’s air conditioner market by 2030. With the current pace of digital adoption and the growing demand for smart home appliances, Xiaomi’s ambitions may even be realized sooner as Gree and Midea feel increasing competitive pressure.

Product Highlights: Innovation at the Forefront

Reflecting its innovation-first philosophy, Xiaomi has recently launched a new floor-standing air conditioner equipped with rapid cooling and heating, a spacious 115° wide-angle air swing, and advanced HyperOS integration for enhanced smart control. The company also introduced the Robot Vacuum Mop 5 Pro, boasting AI-powered cleaning and an ultra-powerful 23,000Pa suction capability—further enriching their ecosystem of smart home devices.

Market Impact and Technology Leadership

Xiaomi’s agile growth, emphasis on IoT connectivity, and strategic use of e-commerce channels are redefining China’s air conditioner landscape. As the market evolves, consumers stand to benefit from a broader range of intelligent, interconnected, and energy-efficient cooling solutions.