(Yicai) May 9 -- Midea Group and Hisense Group, two of China's biggest home appliance makers, have inked a deal to work together on artificial intelligence platforms, smart manufacturing and logistics, as well as other areas, which may prompt rivals to explore similar tie-ups.

Midea and Hisense will jointly develop digital and AI platforms, focusing on deploying AI agents in various fields, including manufacturing and logistics, the said in separate statements on May 7. 

AI agents are finding ever-wider use in home appliances, according to industry analysts. In March, Hisense rolled out 18 in its televisions. They use algorithms to analyze viewer data in real-time to deliver personalized services, the analysts said, adding that the Qingdao-based firm’s TV business is very strong, while Midea does not compete in this segment.

Foshan-based Midea is advancing the "robotization" of home appliances, and its smart products could work alongside Hisense's AI agents, creating new opportunities for collaboration, according to the analysts.

In response to global economic trends and challenges, the two companies will collaborate on green factories, the industrial internet, global production capacity planning, and other initiatives, the pair said.

Midea has been expanding its overseas manufacturing footprint in places such as South America, Southeast Asia, Egypt, and Europe, while Hisense has bolstered its global presence with factories in Mexico, SE Asia, Egypt, and South Africa, the analysts noted, adding that this overlap creates significant potential for cooperation in overseas production coordination and order fulfillment.

In smart logistics, Midea and Hisense will optimize and upgrade platforms across the entire supply chain, focusing on production logistics coordination and developing intelligent warehousing and distribution networks, according to the two companies. 

Midea's logistics arm, Annto Logistics, is preparing for a spin-off listing in Hong Kong, and plans to evolve into an independent third-party provider, the analysts noted. In addition, Hisense is poised to become a key client of Annto, further deepening their ties, they added.

Midea and Hisense have a strong foundation for collaboration, said Zhou Nan, secretary-general of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products' home appliances section. Hisense excels in consumer electronics, display technologies, and chips, while Midea's strengths lie in white goods, smart manufacturing, logistics, and data, so they can drive innovation through complementary capabilities, Zhou noted.

The tie-up could prompt competitors to explore similar partnerships, according to industry insiders. As competition intensifies and price wars escalate, appliance makers will increasingly collaborate to reduce costs and boost efficiency in order to meet mounting challenges, they pointed out.

Editor: Martin Kadiev