Top China consumer appliances stocks amid market challenges

Investing.com -- China’s consumer appliances sector faces headwinds as recent data shows declining retail sales, but industry leaders are gaining market share in this challenging environment, according to UBS rankings.

The Chinese appliance market has experienced significant contraction, with October omnichannel white goods retail sales falling 29-36% year-over-year, primarily due to a high base in 2024 and fading domestic trade-in subsidies. Despite this downturn, certain companies are strengthening their positions through strategic moves and market share gains.

Midea has increased its market share amid the industry downturn. The company gained share in the offline air conditioner market, reaching 34% (up 1 percentage point year-over-year). In washing machines and refrigerators, Midea’s brands (including Little Swan, COLMO, and Toshiba) grew offline value share by 6 percentage points. While the sector faces double-digit retail sales declines expected to continue through December, Midea’s diversified brand portfolio has helped it consolidate its position as competitors struggle.

In recent developments, Midea reported an 11% year-over-year revenue growth for the second quarter of 2025, with net profit rising by 15% during the same period.

Haier has shown resilience by increasing its offline air conditioner value share by 3 percentage points year-over-year to 17%. The company also gained in the online AC market and improved its position in washing machines and refrigerators, with share gains of 1-2 percentage points across categories. Haier’s ability to maintain growth in both online and offline channels demonstrates its strong market positioning despite overall industry challenges.

Get more stock picks by Wall Street analysts by upgrading to InvestingPro - get 55% off today

Roborock is specialized player showing remarkable performance in specific categories despite market headwinds. In robot vacuum cleaners (RVCs), Roborock captured 37% of the online market share (up 8 percentage points year-over-year) even as the overall category saw a 35% sales decline. The company also demonstrated impressive growth in wet-dry vacuum cleaners, where its online sales surged 177% year-over-year, increasing its value share by 21 percentage points to 30%. However, UBS notes this growth may come at the expense of fourth-quarter profitability due to self-subsidies and high marketing investments.

Beijing Roborock Technology Co Ltd received a rating upgrade to Outperform from Neutral by Macquarie, which noted the company’s growth outlook despite its second-quarter earnings missing consensus forecasts.

The broader market context shows significant challenges, with offline sales of major appliances declining sharply in October: air conditioners down 49%, washing machines 39%, refrigerators 43%, and range hoods 37% year-over-year. Meanwhile, tier-2 brands like Hisense, AUX, Xiaomi, and TCL lost share in various categories.

Industry analysts expect market leaders to continue gaining share through brand segmentation strategies as the industry downcycle continues into 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.