As a record-breaking heatwave scorched Europe in the summer of 2026, Chinese appliance giants reaped a windfall of orders. While rivals like Midea, TCL, and Hisense saw double-digit growth in international shipments, Gree Electric Appliances—once the undisputed leader of the sector—found itself sidelined by its own strategic inertia. This stark contrast forced an uncharacteristic admission of failure from the company’s legendary chairwoman, Dong Mingzhu.
At Gree’s 2025 annual shareholder meeting, Dong conceded that the company’s export performance had been disappointing. This was more than mere humility; the data paints a picture of a domestic titan struggling to translate its home-court dominance into global relevance. In 2025, Gree’s overseas revenue accounted for a mere 16.06% of its total turnover, making it the only major Chinese white-goods manufacturer to record negative growth in international markets.
The gap between Gree and its peers has widened into a chasm. While Gree stagnated with 27.4 billion RMB in overseas sales, Midea surpassed 195 billion RMB, with international markets contributing over 42% of its total revenue. Haier has gone even further, with overseas operations now accounting for more than half of its business. These competitors leveraged aggressive mergers and acquisitions, such as Haier’s purchase of GE Appliances, to gain instant local footprints that Gree lacks.
Gree’s struggles are rooted in a conservative, centralized approach that favored self-built brands and a 'one-woman' decision-making structure. While rivals built dozens of global manufacturing bases, Gree remains reliant on just two primary overseas sites in Brazil and Pakistan. This lack of localized production and marketing has left the company unable to respond quickly to regional demand surges like the recent European heatwave.
To address this decline, Gree is undergoing a painful internal restructuring. Dong Mingzhu has recently stepped back from her long-held role as president, handing the reins to internal veteran Zhang Wei. This shift, along with the promotion of younger 'post-85s' executives, signals a move toward professionalized management and a desperate attempt to reduce the firm's reliance on Dong’s personal cult of personality.
The stakes could not be higher as China’s domestic appliance market reaches saturation. With retail sales in China contracting by over 4% in 2025, the international 'blue ocean' is no longer an optional expansion but a survival requirement. For Gree to reclaim its prestige, it must move beyond slogans like 'Let the World Fall in Love with Made in China' and prove it can actually compete in the trenches of global logistics and local retail.