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Hongmeng "takes the lead" to accelerate the home appliance territory and reshape the beauty of Gree giants to join one after another.

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https://finance.sina.com.cn/stock/relnews/hk/2021-07-03/doc-ikqciyzk3235484.shtml

July 03, 2021 01:08 Securities Daily

It has been one month since Huawei HarmonyOS2 (Hongmeng for short) was released. In the Hongmeng ecosystem, home appliance companies have become the most active members. Many home appliance brands have publicly announced their participation in the Hongmeng camp and developed the Hongmeng home appliance system.

Currently, Midea , Haier , Joyoung and other home appliance companies have announced the launch of smart terminals equipped with the Hongmeng system. In fact, many home appliance companies have been in contact with Huawei on Hongmeng cooperation since last year, and even have deep cooperation. In just six months this year, Hongmeng's ecology has developed rapidly.

According to data disclosed by Huawei to a reporter from the Securities Daily, at present, there are more than 1,000 home appliance and consumer electronics hardware manufacturers that have cooperated with Huawei on the Hongmeng system . Huawei has publicly stated that it was originally estimated that the number of 300 million devices adapted to the Hongmeng system will increase to 400 million by the end of 2021. In this feast, home appliance companies will undoubtedly become the main force.

Can Hongmeng System save the sluggish home appliance market, and will it reshape the home appliance landscape? Will Huawei Hongmeng become a new variable in the AIoT field where giants are competing to deploy?

Fang Hongbo led the Dong Mingzhu platform Hongmeng ecology covers 70% of mainstream home appliances?
Since Huawei officially released the Hongmeng 2.0 system, home appliance manufacturers have been unable to restrain themselves and have extended their olive branches to Hongmeng. Many manufacturers have been cooperating with Huawei on the Hongmeng system for a year.

It is reported that Midea is the first home appliance brand to launch the Hongmeng system. Midea Group revealed to a reporter from the Securities Daily: "In fact, Midea has reached a cooperation with Huawei on the Hongmeng system a year ago, and the two parties have conducted cooperative research and development on the system and the terminal , A number of smart terminals equipped with the Hongmeng system will be launched in the next two years."

According to the data released by Midea, as of May 2021, in only one year, Midea has achieved 17 categories and 74 Hongmeng products on the shelves (100+ products under planning); there will be nearly 200 products on the shelves throughout the year, with millions Midea products equipped with Hongmeng system are facing the market. Midea has fully cooperated with Huawei on products, channels, and sales, and is now landing.

It is understood that this cooperation with Huawei was personally led by the chairman of Midea Group, Fang Hongbo, and Huawei’s consumer business CEO Yu Chengdong has also repeatedly called Midea in public, emphasizing the supportive role of the other party.

At present, Midea has established a Hongmeng development team and launched more than ten full-scene home appliances equipped with Hongmeng last year, including dishwashers, smart stoves, etc., which can be interconnected with the Hongmeng system for underlying data.

White power giant Gree Electric also expressed recognition of Ecology. Gree Electric Chairman Dong Mingzhu is the Hongmeng platform and once publicly stated: "Gree will be connected to the Hongmeng system in the future."

Talking about the specific timetable, a person from Gree Electric told a reporter from the Securities Daily: “Gree has already implemented a unified internal deployment. Based on the original cooperation, Gree and Huawei will deepen cooperation in the whole house smart ecology and other fields, and access Hongmeng System." He revealed that relevant details are still under negotiation.

Currently, the members of the Hongmeng ecosystem are still expanding. Huawei predicts that in 2021, more than 40 mainstream brands and 100 million ecological partner devices will become the new entrance to the Hongmeng system experience. According to the data, Huawei officially announced about 36 HarmonyOS partners; about 22 listed companies that have independently disclosed as Harmony's ecological partners; and about 15 Huawei's existing affiliates or partners in the independent ecological camp. According to Huawei's latest caliber, before the end of the year, the number of equipment adapted to the Hongmeng system is expected to increase to 400 million units.

According to reports, Changhong , Skyworth, etc. have also begun preparations, and some giants have achieved substantial results. Related smart terminals may be unveiled in the next two years.

"According to the data we have, at present, the application of Huawei Hongmeng system has covered 70% of mainstream home appliance brands, and some products have yet to mature and will be unveiled in the second half of the year. For home appliance companies, their concerns about joining the Hongmeng system are The balance of the originally constructed ecosystem, but with the growth of the Hongmeng army, the terminals have gathered into a huge scale and have a chain effect. Joining the Hongmeng ecology is the general trend." Wang Haoyu, Managing Director of Junshan and General Manager of Capital Markets Said in an interview with a reporter from the Securities Daily.

More brands are expected to enter the second half of the year Hongmeng or will reshape the pattern of home appliances?
Whether Hongmeng can trigger a disruptive change in the industry remains to be seen. However, it is undeniable that the Hongmeng system will promote the accelerated development of home appliance giants in the smart home industry and bring new impetus to the sales growth of home appliances. This is an important factor in attracting many home appliance companies to enter the Hongmeng ecosystem.

"Small home appliances have a short product life cycle and high demand for replacement. Therefore, the Hongmeng system will drive the sales of small home appliances to a greater extent; for major appliances and kitchen appliances, the market is saturated. , Product demand is mainly driven by the new demand driven by the real estate market. It is expected that the Hongmeng system will drive its sales less than small household appliances in the short term.” Wang Haoyu believes.

Jie Meijuan, general manager of the consumer electronics division of AVC, told a reporter from the Securities Daily: “China’s home appliance market has entered the stock market. The landing of new technologies, new functions, and new scenarios stimulates the demand for replacement, injects vitality into the market, and brings more opportunities for demand growth.

Hongmeng system may become a variable in the home appliance market. After accessing Hongmeng, the breakthrough development of smart home will further enhance the competitiveness of the home appliance head enterprises cooperating with Huawei and further increase the industry concentration.

"The marriage of home appliance companies with Huawei Hongmeng System has opened a precedent for smart homes. Even if consumers do not purchase home appliances of the same brand, they can still achieve one-click control through the Hongmeng system, which overcomes the current major bottlenecks in the development of the domestic smart home market. Fundamentally meet the needs of consumers in the field of smart home. With the development of the Internet of Things era and the "lazy economy" and other factors, equipped with Hongmeng system will become a new selling point of home appliances, leading the new trend of home appliance product upgrades. Home appliance giants will also take the opportunity to transform and change, setting off a new round of knockouts." Wang Haoyu said.

He believes that “if the proportion of Hongmeng system used in the home system exceeds 16%, penetration will be accelerated; when it exceeds 50%, the competitiveness of home appliance brands without the Hongmeng system will be greatly reduced, and the market structure may change as a result."

Huawei Cloud MVP Ma Chao said in an interview with the "Securities Daily" reporter:
"The'Hongmeng + Home Appliances' solution will bring huge benefits and it is foreseeable. Hongmeng's open ecosystem has huge development potential in the future. However, Hongmeng is a model The open source and open operating system is bound to have a certain impact on the previously self-contained closed-loop system of smart home appliances."

Major General Ding, founder of Nail Technology, believes that “Hongmeng will accelerate the pace of upgrading the home appliance industry, but for a single brand, it should not be expected to quickly reshape the competitive landscape. The Hongmeng system is an opportunity for the entire home appliance industry to transform and upgrade. To further promote the development of smart home and the Internet of Things in the industry, home appliance companies should take the opportunity to accelerate self-upgrading and reform in order to seize the opportunity."