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[Household Storage] Experts talk about Deye’s strategy: Crossing the global household storage cycle

Strategic origin: Taking a different approach
Against the background of fierce competition in the inverter track, Deye shares took a different approach and chose the emerging markets in Asia, Africa and Latin America that were neglected at the time. This strategic choice is a textbook-level market insight.
Key strategic judgment

  • Abandoning the fiercely competitive mainland and European and American markets
  • Targeting the underdeveloped household and energy storage markets
  • Entering emerging markets with low cost and high cost performance

Market breakthrough: First to break out
In 2023-2024, Deye shares seized the key market window period:

  • The South African market rose rapidly
  • The Indian and Pakistani markets were released at an accelerated pace
  • Demand in the Middle East and Southeast Asia surged

While peers were still trapped in the European inventory reduction dilemma, Deye shares took the lead in crossing the global household storage cycle and achieved leapfrog growth.

Competitive Advantage Analysis
1. Cost Control

  • SBT localization rate exceeds 50%
  • Institutional line cost ratio is low
  • R&D and sales expense rate is controlled at 23.94%
  • Gross profit margin is controlled as high as possible

2. Market penetration

  • Ranked in the top three markets in South Africa, Brazil, India and other places
  • Using low-price strategy to quickly establish the brand in the early stage
  • Deeply bound with local large distributors

Overseas localization: a breakthrough
Going overseas does not mean exporting, and globalization does not mean internationalization.
On December 17 this year, Deye Co., Ltd. announced major strategic measures:

  • Investment of no more than US$150 million
  • Establishing localized production capacity in Malaysia
  • Proactively responding to changes in the trade pattern

This decision reflects the company’s strategic thinking on the global market.

Market map and growth expectations
Growth rate of emerging markets

  • Growth rate of photovoltaic demand in Asia: 37%
  • Growth rate of photovoltaic demand in South America: 26%

Strategic background: surpassing manufacturers
In the global new energy track, Deye Co., Ltd. interprets the strategic wisdom of “taking a different approach” with actions. By actively avoiding the red ocean market, taking the lead in entering emerging markets, and continuously promoting localization strategies, Deye Co., Ltd. is writing a unique growth story in the global new energy market, transforming from a single manufacturer to a systematic solution provider, and building a differentiated competitive advantage in the new energy track.

  • Keen market insight
  • Forward-looking strategic layout
  • Rapid response execution capability