Chinese home appliance brands are gaining ground in Southeast Asia, with their market share rising over the past five years as they go beyond competitive pricing to attract consumers with services such as round-the-clock support and innovative design.

In Malaysia, the home appliance market was once dominated by big Japanese names such as Panasonic, Toshiba, and Hitachi. Beginning in the 1970s, the manufacturers established factories, supplier networks, and dealer relationships across the country, turning it into a key manufacturing hub for Southeast Asia.

“My personal stereotypes are Japanese brands for predictable quality but otherwise quite conservative features and not much innovation,” said Kerry Chin, a 38-year-old banking executive in Kuala Lumpur, reflecting a view that has provided an opening for a shift in how consumers perceive the increasingly popular Chinese brands.

According to Lim Kim Heng, managing director of retailer Senheng, when the Chinese brands entered Malaysia in the early 2000s, their appeal was largely confined to budget-conscious consumers, first-time homeowners and landlords furnishing rental properties.

The turning point came in the late 2010s and accelerated into the early 2020s, as the manufacturers invested heavily in product quality, design, and branding.

Televisions were among the first categories where Chinese brands gained broad acceptance, helped by competitively priced smart TVs. TCL, and Hisense drew consumers with larger screens and features at significantly lower prices than Japanese and South Korean rivals. In Malaysia, Chinese brands’ share in this category rose to 36.1% in 2025 from 15.1% five years earlier according to research firm Euromonitor, citing unit sales.

Beyond appliances, the success of Chinese smartphone brands has also helped reshape consumer perceptions. “As Malaysian consumers became increasingly satisfied with Chinese-made smartphones, many began to reassess their perceptions of Chinese products more broadly,” Lim said.

Lim believes the market will continue evolving in China’s favor. “Older consumers often made purchasing decisions based on brand reputation and heritage,” he said. “Younger homeowners are increasingly asking, ‘What features can I get for the price?’ rather than ‘Which brand is the most famous?'”

In Southeast Asia, the average share of major appliances, including refrigeration, home laundry appliances and dishwashers, held by Chinese companies increased to 20.8% in 2025 from 17% in 2020. Air conditioners in particular saw strong gains, with their share rising to 26.6% from 16.1%, while that of Japanese companies fell to 37.2% from 43.7%.

One of the biggest shifts was seen in Indonesia, where the Chinese share of air conditioner sales climbed to 34.5% in 2025 from 15.7% in 2020, exceeding Japan’s long-standing lead.

Despite these gains, Japanese and South Korean brands continue to command significant market share across the region. In air conditioners, Japan still leads with at 37.2%, while South Korean companies dominate the television segment.

Chinese air conditioner manufacturer Gree Electric Appliances introduced its “Golden Guarantee” program in 2021, offering a ten-year warranty on compressors and a five-year warranty on repairs and spare parts. By contrast, Japanese and South Korean brands typically offer a five-year compressor warranty and up to two years for repairs and parts.

Gree is also offering round-the clock “Always On Service,” which allows customers to receive assistance at any time, including holidays.

Nicky, vice president of Gree Indonesia, said “We want to ensure that every customer can receive fast and professional assistance, because the comfort of home shouldn’t have to wait.”

Despite longer warranty periods, Chinese home appliances remain significantly cheaper than Japanese and South Korean products.

Jayadi, an air conditioner technician in Bekasi, West Java, who like many Indonesians uses a single name, said, “Consumers can get Chinese inverter air conditioners for the same price as conventional Japanese or South Korean air conditioners. Inverter air conditioners are certainly much better because they save on electricity costs.”

He also said that some Japanese and South Korean-branded air conditioners are actually manufactured in China.

Over the past five years, the combined share of Japanese brands including Daikin and Mitsubishi has declined to 27.9% in 2025 from 33.9% in 2020, while South Korean brands fell to 15.6% from 23.6% over the same period.

Chinese brands are also expanding their presence in major appliance segments such as washing machines and refrigerators in Indonesia.

Best Electric Indonesia, an appliance retailer, said consumers are increasingly choosing Chinese brands because they offer features comparable to Japanese and South Korean products at prices 20–40% lower. These companies are also able to introduce new models more quickly, while tailoring products to local conditions such as tropical climates and smaller living spaces.

Chinese brands are scaling up their assembly facilities in Indonesia to comply with the government’s strict local content requirements, known as TKDN, while positioning the country as an export hub for Southeast Asia.

Midea has developed a large-scale, fully automated smart factory in the Karawang industrial zone in West Java, with annual production capacity exceeding 2 million refrigerators. The company is expanding local procurement to strengthen supply chain resilience.

The changes can also be seen across countries, not only in innovative services but also in product functionality.

“The definition of functionality has changed the market over the past few years,” said Tim Chuah, senior global insight manager for appliances at Euromonitor.

For premium appliances such as those from Sweden’s Electrolux or Germany’s Bosch, functionality has traditionally been defined by durability, materials and minimalist design, he added.

Chinese brands, however, are redefining the landscape by repositioning themselves as offering “affordable premium” products, moving away from competing solely on low margins and cost.

Chinese home appliance giant Haier has unveiled a drum-type washing machine featuring three separate frontloading drums—one large unit at the bottom and two smaller ones on top—giving it a shape that has been likened to Mickey Mouse. Designed to handle three loads at once, it has been nicknamed the “lazybones” washing machine.

The machine can wash different types of clothing simultaneously, allowing items such as coats and delicate garments like lingerie to be cleaned separately in a single cycle. The concept also reflects longstanding laundry habits in Chinese households, where many consumers have traditionally avoided using washing machines for undergarments, opting instead to wash them by hand for hygiene reasons.

After its global debut in March 2025, the product went viral on social media in both China and Southeast Asia, with online influencers driving its popularity.

Japanese companies such as Panasonic Holdings are trying to follow this trend using social media platforms including TikTok, but Chinese brands are leading in combining innovative products with social media marketing.

In Southeast Asia, the share of home laundry appliances, including washing machines, dryers and washer-dryers, rose to 21.2% from 18.1%. Gains were particularly strong in Thailand, where the share climbed to 23.2% from 15.3%.

In Thailand, Chinese manufacturers are positioning the country as both a key market and an export hub. Haier and Midea have been scaling up production, with Midea establishing its largest overseas manufacturing base and regional headquarters there, while Haier sees Thailand as a “bridgehead” for Southeast Asia.

Haier has maintained a leading position in Thailand’s air conditioner market for several consecutive years. Midea has also secured leading positions in both refrigerators and microwave ovens, highlighting its strength in core household appliances. TCL has emerged as a major player as well, securing a high share of the country’s television market.

Chinese brands have expanded their presence in refrigeration appliances, with market share rising to 44.7% in 2025 from 30.1% in 2020.

E-commerce has become a key strength for Chinese brands. In mainland China, online channels account for more than half of home appliance sales.

Robot vacuum cleaners are a typical category where Chinese brands have expanded rapidly. Over the past five years, their market share rose to 58.2% from 36.2%, with particularly strong gains in the Philippines, where share surged to 81% from 28.6%. This growth has been supported by collaborations with e-commerce platforms such as Shopee and Lazada, where companies have set up official online stores and run regular promotional campaigns.

Beijing-based Roborock has emerged as the market leader, followed by Chinese peers Ecovacs Robotics and Xiaomi, which have overtaken US-based iRobot in market share.

In the television segment, Chinese brands such as TCL and Hisense have significantly expanded their presence in Southeast Asia, with their combined market share rising to 23.7% from 13.6%. South Korean players, including LG and Samsung, continue to dominate the market, maintaining a combined share of 50.4%, up 0.1 percentage point compared with five years ago.

Across the region, market trends vary significantly. Singapore stands out as a market where Chinese brands have made limited inroads. Their share of major appliances has remained low at 4.3% over the past five years, reflecting more conservative consumption patterns than in other Southeast Asian countries.

Looking ahead in Southeast Asia, Euromonitor’s Chuah said, “Chinese brands will definitely look to scale up their operations in the region. They are also innovating their service model.”

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.