Dong Mingzhu, the formidable chairwoman of Gree Electric and a titan of Chinese industry, recently offered a rare public admission of failure. During the 2025 annual shareholders' meeting, the woman long dubbed China's 'Iron Lady' conceded that her company had stumbled on the global stage. This mea culpa comes as record-breaking heatwaves across Europe drove a desperate surge in air conditioning demand, a 'once-in-a-generation' market opportunity that Gree conspicuously failed to capture.
While European consumers abandoned their aesthetic objections to bulky cooling units, they didn't reach for Gree. Instead, they turned to its arch-rival, Midea, which has successfully positioned its portable and quiet units across the continent. While Midea’s overseas revenue climbed to nearly 43% of its total earnings in 2025, Gree’s international revenue stagnated at a mere 16.06%. This makes Gree the only major player among China's 'Big Four' white goods manufacturers to see negative growth in international markets over the past year.
The divergence reveals a deeper structural malaise within the Zhuhai-based giant. For years, Gree has relied on a traditional, multi-layered distributor model that served it well in domestic China but proved clunky and unresponsive abroad. Unlike rivals Haier and Midea, who aggressively acquired foreign brands and established local R&D centers, Gree remained conservative. This isolationist strategy has left the brand unable to navigate local European regulations or consumer preferences for plug-and-play convenience over permanent installations.
Financial markets are reflecting this lack of confidence. Hillhouse Capital, once a cornerstone investor and a symbol of Gree’s potential for modernization, recently cashed out nearly 1.6 billion RMB in shares. The divestment signals a broader skepticism: Gree’s total revenue in 2025 was lower than its 2019 peak, a stunning 'inverse growth' trajectory in an era where its competitors are diversifying into industrial robotics and smart-building ecosystems. Gree’s own attempts to pivot into smartphones and chips have largely been dismissed as vanity projects that failed to move the needle.
Perhaps the most significant risk is the 'Dong Mingzhu' brand paradox. While Dong remains a social media powerhouse, her personal celebrity has arguably begun to cannibalize the company’s product identity. To China’s Gen Z, she is increasingly viewed as an 'Internet meme' or a cultural symbol rather than a visionary product manager. As this younger generation becomes the primary consumer of home appliances, Gree finds itself trapped: it is a company whose singular identity is inseparable from its aging leader, yet its products are struggling to find relevance in a market that demands innovation over personality.