Chinese home appliance maker Midea has instructed its after-sales service providers to stop taking on work related to Xiaomi and Gree products, according to several industry sources.
The directive was communicated privately by regional managers within Midea’s China division and covers installation and maintenance services for air conditioners made by competing brands, the people said.
Midea’s public relations department said it was not aware of the policy. But several Xiaomi distributors confirmed the move, saying most after-sales work involves installation and that Xiaomi offers both bundled and separate delivery-and-installation options.
They said requiring service partners to choose between brands could loosen Xiaomi’s ties to offline service networks, though third-party providers remain available and the overall impact on consumers should be limited if fees are kept in check.
One Midea employee said the policy was primarily aimed at Xiaomi, whose strong air-conditioner sales this year have increased competitive pressure. The notice was issued in October, the person added.
Explore more exclusive insights at nextfin.ai.
Insights
What is the background of Midea's decision to stop working with Xiaomi and Gree service providers?
How has Midea's directive affected its after-sales service network?
What are the implications of Midea's policy on Xiaomi's market position?
How do consumers perceive Midea's decision regarding after-sales service?
What trends are emerging in the Chinese home appliance market concerning brand loyalty?
What recent developments have occurred in Midea's competitive strategy?
How has Xiaomi responded to Midea's restrictions on service providers?
What potential long-term effects could arise from Midea's directive on industry dynamics?
What challenges does Midea face in implementing this policy across its service network?
Are there similar instances in the past where companies have restricted service providers?
How do Midea and Xiaomi compare in terms of market share and sales performance?
What role do after-sales services play in consumer satisfaction in the home appliance industry?
What are the possible consequences for consumers if after-sales service options become limited?
How does this situation reflect the competitive landscape among Chinese home appliance manufacturers?
What are the key factors influencing customer choice between Midea, Xiaomi, and Gree?
How might geopolitical factors affect the Chinese home appliance market in the future?
