In the first half of 2026, the Chinese home appliance industry experienced a downturn, with a 9.9% year-on-year decrease in the overall retail sales of home appliances across all channels. Among them, the three major household appliance giants Haier Smart Home, Gree Electric Appliances, and Midea all saw varying degrees of decline in revenue and profits. Analysts believe that the home appliance market has bid farewell to the era of widespread increase in prices.
On September 17, the 2026 Annual Conference on the Development of Home Appliance Services was held in Beijing. Data revealed at the meeting showed that in the first half of 2026, the total retail sales of home appliances in China amounted to 425 billion yuan, a 9.9% decrease compared to the same period last year. Furthermore, the decline in the second quarter was further expanded compared to the first quarter.
On September 23, Shenke New Consumption, a brand planning company under Chongqing Kuaidao, published an article stating that the home appliance market has bid farewell to the era of widespread price increases, and even leading companies find it difficult to thrive independently.
The semi-annual report data of the enterprises indicated that the industry leader Haier Smart Home’s revenue in the first half of the year decreased by 2.8% year-on-year, and its net profit attributable to the mother decreased by 14.27% year-on-year. The data shows that Haier Smart Home, which had seen continuous year-on-year growth in revenue and net profit in 2023, 2024, and 2025, experienced a decline in both revenue and profit in 2026.
Gree Electric Appliances saw an 8.15% year-on-year decrease in operating income in the first half of the year; net profit attributable to the mother also fell by 7.87%, with both revenue and net profit declining.
Another industry giant, Midea, although performing better than Haier Smart Home and Gree Electric Appliances, saw a slight year-on-year increase in total operating income and net profit attributable to the shareholders of listed companies in the first half of 2026. However, the adjusted net profit attributable to the mother plummeted by 25.31% year-on-year, with a significant decline of 35.98% in the second quarter alone.
Adjusted net profit attributable to the mother reflects the true level of core profitability of the company, excluding any artificial inflation, and reflects the actual profit-making ability brought solely by daily production, sales of products, or provision of services.
With industry leaders struggling, mid-range kitchen and small home appliance companies are facing similar challenges. Boss Appliances, affected by the contraction in demand for new home renovations, experienced declines in both revenue and profit in the first half of the year. According to financial reports, Boss Appliances’ revenue decreased by 13.78% year-on-year, and net profit attributable to the mother decreased by 18.75%. Another enterprise producing gas appliances and kitchen appliances, Huadi Group, saw a 12.11% year-on-year decrease in revenue and a 36.35% decline in net profit attributable to the mother.
“Shenke New Consumption” believes that although the authorities have implemented various stimulating policies such as national subsidies for home appliances and trade-in programs, the policy benefits have not been fully passed on to manufacturing enterprises. The old growth engines are gradually losing steam, and the strategic new business lines that companies are banking on for additional revenue and profit growth are currently struggling to deliver scale benefits. Additionally, the downturn in the real estate industry, coupled with a challenging economic environment, and decreased willingness among residents to upgrade their appliances are factors that collectively exert pressure on the industry as a whole. The market has indeed bid farewell to the era of widespread price increases.