Vatti Corporation executives discuss the restructuring of business logic: shifting from "selling products" to "managing users"

Ask AI · Why did Vatti choose to subtly integrate AI technology into the product experience?

China Economic Journal Reporter Chen Jingbin, Hangzhou report

Under the combined influence of the real estate cycle adjustment and the gradual withdrawal of consumption subsidies, the kitchen appliance industry is entering a development stage markedly different from the past decade. The growth logic is shifting from external-driven to endogenous-driven, the market moving from incremental expansion to deepening existing stock, and the core variables of corporate competition are also changing.

This change was prominently showcased at Vatti’s new product launch on March 30, 2026. Along with the official announcement of new spokesperson Zhang Linghe and the release of the “Porcelain Talk” series, the company not only presented new expressions at the product level but also released more systematic signals of adjustment in management, product, and brand strategies.

In an interview with the China Business Journal, several senior executives including Vatti’s Chairman Pan Yejian, Vice President and COO Han Wei, and CMO Pan Zhaozhao expressed a clear but not fully elaborated question: in the context of declining policy dividends and a slowing industry rhythm, how can kitchen appliance companies redefine growth and establish the boundaries of resilience through cycles?

Illustration / Vatti Chairman Pan Yejian

Manufacturing Intelligence, Service Digitization, and Integrated Product-Sales-Service

From the information released at the launch event and subsequent group interviews, Vatti’s changes first manifest in the restructuring of its management logic.

“Shift from ‘selling products’ to ‘managing users,’” Han Wei stated.

This shift is not a short-term strategy but a direction established years ago, gradually implemented as an overall path of “manufacturing intelligence, service digitization, and integrated product-sales-service.”

Centered on this goal, the company has initiated systematic adjustments at the channel and terminal levels. Han Wei explained that Vatti is promoting “terminal renewal” by upgrading stores, restructuring displays, and optimizing experiences, enabling new technologies and products to reach consumers simultaneously, thereby shortening the “cognition—experience—purchase” chain. “In the past, consumers learned about new technologies online, but offline stores couldn’t provide the experience. This ‘experience gap’ directly affects conversion.”

Alongside terminal upgrades, the role of the service system is also changing. Han Wei told reporters that the company is trying to shift services from a cost center to a core focus of user management, and is promoting dealers from single sales agents to “sales + service” integrated operators to extend the user lifecycle.

This change is also reflected on the product side.

During this year’s AWE (China Household Electrical Appliances and Consumer Electronics Expo), AI became a common industry emphasis, but Vatti chose a markedly different technical expression. Han Wei proposed a product logic of “invisible technology, visible experience,” emphasizing “not doing AI for AI’s sake.” In his view, the core function of technology is to solve specific usage problems, not to serve as a standalone selling point.

This logic is embodied in the “Porcelain Talk” series. The series integrates AI air monitoring, high airflow smoke control, steam cleaning self-cleaning functions, but externally emphasizes user-perceived experiences such as “automatic smoke control,” “quiet operation,” and “one-click cleaning.”

Meanwhile, product design is increasingly extending toward spatial attributes and aesthetic expression. Product Director Yao Yong said that the current kitchen space is evolving toward open-plan and LDK (Living, Dining, Kitchen) integration, with rising user demands for embedded, integrated, and visually coordinated products. “Kitchen appliances are shifting from functional tools to home furnishings.”

At the brand level, the changes are more visibly expressed in strategic paths.

Pan Zhaozhao said that Vatti’s current branding actions revolve around “fashionability,” which is not just a simple upgrade in communication but an important part of the high-end path. “High-end is not only about technology and quality but also aesthetic value and lifestyle.”

Illustration / Vatti CMO Pan Zhaozhao

This approach is concretely reflected in two parallel paths: one is signing Zhang Linghe to strengthen connections with younger audiences; the other is collaborating with Ye Xiaochun, inheritor of Longquan celadon intangible cultural heritage, to embed traditional cultural elements into product design.

Pan Zhaozhao emphasized that this combination is not merely a traffic strategy but a two-way matching based on “concepts resonating.” “We don’t pursue short-term exposure but aim to establish genuine connections with young people through long-term content.”

Becoming a Comprehensive Lifestyle Solution Provider

The emergence of these changes is not solely a proactive choice by a single company but more a concentrated manifestation of industry structural constraints.

First, there is a shift in demand-side driving forces.

Han Wei pointed out that the kitchen appliance industry is moving from “policy-driven” to “value-driven.” As national subsidy policies normalize or contract, their marginal effect on sales diminishes. “Sales ultimately depend on user demand; without demand, government subsidies cannot play a role.”

Meanwhile, the real estate market has entered a cycle of adjustment, with new demand slowing, but stock replacement needs beginning to emerge. This means industry growth no longer relies on new housing but more on user upgrading and replacement willingness.

In this context, companies need to shift from one-time transaction models to long-term user relationship management. Han Wei told reporters, “In the stock market, it’s not about short-term sales but about user reputation and repurchase,” which directly explains why service systems are being redefined.

Second, there is a change in the competitive structure.

On one hand, competition among traditional leading brands has shifted from scale expansion to structural optimization; on the other hand, new entrants like Zhiming are disrupting the existing landscape through technological pathways.

During interviews, many executives mentioned issues like “price wars” and “parameter involution.” Pan Yejian said the company will not participate in price wars but insists on “people-oriented productism,” establishing differentiation through technology and experience.

This choice is constrained by cost structure and brand positioning. Once price competition begins, existing R&D investments and high-end positioning will be difficult to sustain, weakening long-term competitiveness.

Third, there is uncertainty in technological pathways.

AI, as a current industry hotspot, is still in early stages of implementation. Han Wei pointed out that AI penetration in kitchen appliances remains low because the technology has not yet truly addressed usage scenarios.

Yao Yong further explained that effective AI application requires real-time perception of temperature, fumes, gases, and other multidimensional data, along with coordinated control, which demands higher sensor technology and system integration capabilities.

Therefore, in the stage where technology is not fully mature, companies prefer to advance “implicit technology,” embedding AI capabilities into specific functions rather than presenting AI as a standalone selling point.

Finally, there is a structural change in consumer preferences.

Many executives also mentioned that young consumers’ decision criteria are shifting from single performance indicators to comprehensive judgments involving aesthetics, emotions, and cultural identity.

Pan Zhaozhao said that the key to brand competition is “mind share,” and establishing that requires resonance with users. This also explains why companies incorporate cultural elements like Longquan celadon and strengthen emotional connections through spokespeople and content systems.

In the longer term, this change means kitchen appliances are shifting from “functional tools” to “lifestyle carriers.” As Pan Yejian put it, “Kitchen appliances should evolve from functional satisfaction to emotional value fulfillment.”

Under the combined influence of multiple structural factors, Vatti’s current strategic path shows a clear direction: centering on users, through coordinated restructuring of management models, product logic, and brand expression, transforming from a single manufacturer into a provider of comprehensive lifestyle solutions.

(Editor: Zhao Yi; Review: Tong Haihua; Proofreading: Zhai Jun)