A bold red sign declaring "Full assault on 6 million units for the 2026 cold year!" is the first thing that greets visitors at Midea's air conditioner factory in Chonburi, Thailand. The Chinese characters are accompanied by a Thai translation below. While March to June is typically the peak production season for air conditioners, this factory is already a hive of activity by year-end. A significant portion of its output is destined for the United States, and factoring in shipping times necessitates this early start. Workers on the assembly lines are constantly engaged in sorting, welding, assembling, and packing; the noise of machinery nearly drowns out human conversation, interrupted only by periodic Thai-language announcements of quality control results.

Defying the stereotype of a relaxed Southeast Asian work ethic, the factory employees demonstrate meticulous attention to their tasks. "Over 98% of our factory staff are now local, comprising Thais and people from neighboring countries. Admittedly, there is still room for improvement in production efficiency, a challenge faced by all home appliance companies coming here," explained Li Peng, General Manager of Midea Home Air Conditioner Thailand Factory, who could only spare a few minutes during the busy season.

Overseas markets now account for nearly half of Midea's total revenue. According to Midea's third-quarter report for 2025, the company achieved revenue of 363.057 billion yuan in the first three quarters, with overseas OBM (Own Brand Manufacturing) income rising significantly, accounting for over 45% of its To C business. Another major appliance giant, Haier, already derives more than half of its revenue from overseas markets. Financial reports show that in the first half of 2025, Haier Smart Home's overseas market revenue reached 79.08 billion yuan, an increase of 11.7%.

"Over the next 20 years, Chinese companies will essentially recreate a 'China' overseas," Yao Yang, Dean of the Dishui Lake Advanced Institute of Finance at Shanghai University of Finance and Economics, once summarized the path of Chinese companies going global. As one of the most internationalized "helmsmen" among Chinese enterprises, how are home appliance companies navigating these global winds, and what new directions are they exploring?

Why Thailand? In recent years, Chinese home appliance brands have been "flocking" to Thailand. At the end of 2024, Weili Electric's Thai factory was completed and began operations. In October of this year, the Thailand Board of Investment (BOI) approved Homa Refrigerator's investment application to establish a production base in Thailand. Many appliance companies already producing in Thailand are still upgrading and expanding their capacity. In March of last year, despite already operating four overseas production bases in Thailand, Midea broke ground on a new technology industrial park in Rayong. This September, Haier's Chonburi Air Conditioning Industrial Park in Thailand officially commenced operations, becoming the largest air conditioner production base for a Chinese brand in Southeast Asia. Around the same time, the groundbreaking ceremony for the Hisense HHA Intelligent Manufacturing Industrial Park was held in the Amata Chonburi Industrial Park.

Thailand's strategic importance is growing within the global blueprints of these industry leaders. "For Haier, Thailand is a very important 'bridgehead' market," Dong Jianping, General Manager of Haier Electronics (Thailand) Co., Ltd., stated. Midea has not only placed its largest overseas manufacturing base in Thailand but also established its Asia-Pacific headquarters there, aiming to make Thailand its "second home market," second only to China.

This naturally raises the question: why Thailand? Jiang Xuan, President of Midea Group's Asia-Pacific region, explained that while Midea has production bases in Vietnam, Indonesia, Egypt, Brazil, and Mexico, a横向 comparison reveals Thailand's advantages in political environment, supply chain foundation, and demographic structure. On one hand, the local market is substantial enough for Midea to potentially become the top home appliance player in Thailand. On the other hand, Thailand also offers excellent export conditions, capable of covering surrounding markets and even those in Europe and America.

Looking at a map of Chinese home appliance companies' overseas footprints reveals a concentration in Thailand's Chonburi and Rayong provinces, the core area of the Eastern Economic Corridor and a strategic focus of Thailand's recent development. Yang Shuai, General Manager of Haier's Chonburi Air Conditioning Park, noted the factory's convenient location, being just over 40 kilometers from Laem Chabang Port, Thailand's largest deep-sea port, allowing it to serve Thailand while radiating out to global markets.

Furthermore, the Thai market itself appears to be undergoing a wave of consumption upgrading. "Thailand's home appliance market is actually very mature; basically, any new products launched in China are available here too. Even in townships, everyone's demands are evolving. Take washing machines, for example; no one wants to buy semi-automatic twin-tub models anymore," Dong Jianping cited another example: a customer with a budget of 20,000 Thai baht came to buy a washing machine, was very interested in Haier's latest model with fabric care functions, but walked away upon hearing the price was 90,000 baht. After looking around, the customer found they still liked the Haier model best and ended up purchasing the product far exceeding their initial budget.

Premiumization is Not the Only Path Giant billboards for Chinese home appliance brands are a common sight on Thai roadsides. In a nation that reveres Muay Thai, Midea has enlisted "Muay Thai Prince" Buakaw Banchamek as an endorser. Celebrity culture is also booming in Thailand; Haier stores prominently feature cutouts of Thai male star BamBam to promote their products.

"Over twenty years ago when Haier first came to Thailand, few people knew about us, so we had to persistently focus on brand exposure and product visibility," Dong Jianping recalled. Localized marketing is just the first step. Jiang Xuan has his own logic for sales conversion: "When a new brand enters an overseas market, the first step is making consumers aware of you. Then, they must be willing to enter the store and consider purchasing, which is the 'consideration' stage. As for how to finalize the sale, and even have users voluntarily recommend it to others, that corresponds to the 'conversion' process. Every single step must be considered when expanding overseas."

For many years, the Thai market was dominated by Japanese and Korean brands. Recently, however, Chinese home appliance brands have significantly increased their presence. According to company information, Haier has consistently held the top spot for air conditioners in Thailand for several years, Midea has achieved a "double first" in refrigerators and microwave ovens, TCL is already the second-largest brand in TV market share, and Chinese players are in the top tier for categories like washing machines and air purifiers.

A common consensus among interviewed companies is that product strength is indeed the core differentiator. Dong Jianping mentioned that frequent market visits reveal that some Korean and Japanese brands have longer product iteration cycles, sometimes exceeding five years. In contrast, Chinese companies move much faster, quickly synchronizing new technologies and products launched in China to the Thai market. "Rapid response and iteration capability is a distinct advantage we have over traditional international brands."

This product strength is rooted both in the strong R&D capabilities of Chinese brands and a deep understanding of local needs. Located in the tropics with no winter, Thailand's shopping malls and subway stations feel several degrees colder indoors than outdoors, even towards the year's end. "Thai households use air conditioning almost year-round, but during seasons like November and December, it might get too cold by midnight. So, Haier developed this voice-controlled air conditioner; you don't need to get up, just say 'Haier, turn off the air conditioner,' and it will shut down," Dong Jianping explained while giving a live demonstration.

In recent years, premiumization has also become a hidden trend in the appliance industry's global expansion, reflecting an aspiration to climb higher on the industrial and value chains. The idea is that Chinese appliances can no longer compete solely on good quality and low price but must capture more profitable segments. Some have even proclaimed, "Go premium or get out." However, Jiang Xuan has his own perspective on pursuing premium strategies. "Some traditional overseas appliance companies basically operate with a single brand. To maintain annual revenue and profit growth, they often have no choice but to continuously raise product prices and launch ever more premium new products. While these products gain more features, their prices eventually reach an unsustainable level where few consumers are willing to pay, leading to an 'innovation dilemma.' Teams accustomed to cutting-edge product development may gradually lose the ability to create high-value-for-money products, and factories lose competitiveness in the mid-to-low end segments," Jiang Xuan remarked candidly about the bottlenecks some foreign brands face.

Consequently, he firmly believes that a multi-brand strategy is a key advantage for Chinese home appliance companies. "We must have product lines positioned at the premium end to capture markets with high average order value and profit margins. But we also need mid-range and even low-mid range brands to maintain the advantage of value-for-money and mass appeal, which is crucial for capturing mainstream consumers," Jiang Xuan emphasized.

"We Still Have Room for Improvement" Conversations with locals in Thailand offer the most direct pulse of the home appliance market. In a home appliance section of a central Bangkok shopping mall, a middle-aged Thai man shared that almost his entire set of home appliances are from Xiaomi, and his washing machine is from Haier, adding that his relatives and friends also use Chinese products. "Actually, most people don't understand the technical details. Chinese brands' technology is already very mature; you don't need to overthink when buying, and once you start using them, you find they work very well." In contrast, a Thai taxi driver mentioned that his family still prioritizes Japanese brands when buying air conditioners, partly because they can be taken along when moving house.

Shifting brand perceptions among Thais may require more time. A staff member from a Chinese appliance company recounted a frustrating experience from a few years ago: they were competing with a Japanese brand to supply air conditioners for a residential project. Despite the Chinese brand having an absolute price advantage, the developer ultimately chose the Japanese brand. The explanation given was that "if the project uses a Japanese brand, they can market it as a selling point and command a higher price per unit for their apartments."

Dong Jianping also admitted that although Haier has a large user base in Thailand, "currently, our share is not absolutely number one in every retail store, which means there is room for improvement. Additionally, there is potential to be tapped in overall management and operational efficiency." Furthermore, the importance of after-sales service, considered almost on par with the product itself, is a basic consensus among many industry players operating in Thailand.

Jiang Xuan also came to fully appreciate this rule only after Midea's deep localization in Thailand. "During the product export phase, we were utterly focused on product quality. But after truly establishing ourselves here, we realized that even if the product isn't perfect, consumers can still be satisfied with rapid after-sales response and high-quality service. That's why Midea previously invested tens of millions annually to build its after-sales service network." However, on specific, granular metrics like the 48-hour case closure rate and call center response times, Jiang Xuan believes Chinese appliance companies still have room to catch up.

Breaking the stronghold of Japanese and Korean brands on B2B sales channels is not a task that can be accomplished overnight. In Jiang Xuan's view, B2B channels have high barriers to entry because they involve dealing with developers, design institutes, government departments, and even mom-and-pop stores in rural areas. These professional channels account for a massive share of the Thai appliance market and exhibit deep path dependency, tending to stick with previously purchased brands. "This is different from retail, where you simply put products on shelves. Conquering professional channels might take a generation, as they require time to build relationships bit by bit. Of course, the fastest way would be through mergers and acquisitions."

Using Regionalization to Counter De-Globalization In 2025, tariff issues have become a persistent shadow over global trade. In Thailand, many appliance companies with local production also have businesses exporting worldwide. Yet, protectionist trends do not seem to be halting the overseas march of these companies. Full order books and operating at full capacity were the common feedback from factory managers during visits to Midea and Haier facilities in Thailand.

"Thailand still holds tariff advantages for exports to the US. Currently, the capacity of Midea's overseas factories can basically meet the demand for overseas orders, so our order book remains quite full this year. However, export processes also involve local content rate requirements, necessitating further optimization of our supply chain and local supporting industries," Li Peng stated.

"Regionalization can help mitigate many risks," Dong Jianping pointed out. When a home appliance company's global footprint spans continents and major regions, if policy fluctuations like tariffs occur in one market, production capacity in another region can provide support. "In the past, we were accustomed to viewing the world from China, making decisions and formulating solutions at the China headquarters. But the next step in internationalization is inevitably regionalization. First, regional headquarters must be able to handle affairs within their region. Secondly, it involves mutual coverage between regions. For instance, the Americas market has production bases in Brazil and Mexico, while the Thailand market can also play a supporting and synergistic role," Jiang Xuan elaborated.

Observers often categorize corporate globalization into stages: "Going Global 1.0" corresponds to product export, the most basic form of goods trade. "Going Global 2.0" involves moving production capacity overseas, driving local employment and supply chain development. The home appliance industry is now steering towards Stage 3.0: the export of entire ecosystems – replicating a complete system of R&D, supply chain, sales, branding, logistics, and after-sales service overseas. From a single light to bringing cool comfort to millions of households, Chinese home appliance companies are still writing new chapters in the global market.