The policy of home appliances to the countryside depends on "sequelae"

The policy on home appliances going to the countryside, which has been implemented since 2007, will expire at the latest by January next year. The latest news from Beijing frequently said that the relevant government departments are considering the possibility of policy continuation and triggered widespread controversy in the industry. The implementation of home appliances to the countryside for the past five years has played a significant role in boosting the scale of the home appliance industry. It has opened the door for enterprises to reach the tertiary market, but at the same time, it also released some rural consumer demand in advance. Competition and after-sales services have brought about certain hidden dangers. Enterprises that have been driven by this policy in the past few years are facing new challenges.

First, the good: to stimulate the scale of the industry to stimulate the rejuvenation of local brands Recently, the State Department of Commerce issued a "Summary of Business Achievements since the 16th National Party Congress: Promoting Consuming Policies to Constantly Innovate Consumers to Further Promote Economic Relevance" report pointed out that starting from 2007 In the policy of home appliances going to the countryside, as of September 2012, the central and local governments have invested a total of 76.5 billion yuan in subsidy funds, and have distributed an average of nearly 400 yuan to each rural household. The cumulative sales of home appliances to the countryside were 275 million units, and sales amounted to 659.76 billion yuan, achieving remarkable results.

Bringing home appliances to rural areas has stimulated rural consumer demand, as well as the increase in the size of the home appliance industry, which has brought tremendous economic benefits to home appliance companies. Statistics from the Ministry of Commerce show that in 2011, sales of color TVs, refrigerators (including freezers), and washing machines for home appliances to the countryside accounted for 62%, 30%, and 24% of the total domestic market. From January to September of this year, for example, Haier, Greeji, and Hisense achieved sales of 18.53 billion yuan, 13.09 billion yuan, and 12.84 billion yuan, respectively, through home appliances to the countryside, accounting for 28.9 percent of the total home appliances to the countryside during the period. %.

At the same time, home appliances to the countryside also allows some home appliance brands to take the opportunity to open the door to the 34 markets, and actively implement channel sinking. Statistics show that at present, sales of home appliances to the countryside have reached 200,000 outlets, covering all counties and townships in the country, and initially formed a rural appliance distribution network with a degree of chain and scale. At present, Qingdao Haier has built 73,000 village-level liaison stations, more than 4,300 star-rated after-sales service outlets, and has 18,000 service personnel. The number of brand stores of the United States and Gree has exceeded 10,000, and Changhong plans to build 10,000 stores nationwide within three years. TCL Chairman Li Dongsheng once interviewed this reporter and talked about this year's market in the three-fourth market. With 5000 outlets added, Liu Wei, vice president of Vantage Co., Ltd., also revealed that Vantage currently has more than 4,200 outlets in the country.

The huge market going to the countryside has also allowed some old brands, including Chunlan and Wanbao, no longer to have a sense of revival.

Second, hidden dangers: Overdraft consumption policy relied on “sequelae” to show that since November last year, the three-province and one-city home appliances to the countryside policy took the lead in expiring, entering the countdown phase of the policy exit, the industry’s rapid growth that had previously been dependent on policies began to slow down significantly, including the United States’ Many leading companies such as Haier, Chigo, or their growth rate have experienced a decline. Moreover, the rural purchasing power has been released ahead of schedule, and the effect of gradual exit from home appliances to the countryside has begun to spread. Some negative effects on excessive use of industrial policies and excessive dependence on household appliances have gradually emerged, especially in the refrigerator industry.

According to data from Zhong Yikang, domestic refrigerator sales from 2009 to 2011 increased by 11.9%, 20% and 2.9% year-on-year, benefiting from home appliances going to the countryside. Refrigerator companies have increased production capacity. In 2011, the cumulative production of domestic refrigerators was 869.92 million units, and the total domestic refrigerator production this year is expected to reach 120 million units. The industry online data also showed that refrigerator sales fell 1.78% year-on-year in the first nine months of this year. Appliance analyst Liang Zhenpeng believes that in the case of oversupply, the refrigerator inventory problem will become more severe, competition is fierce, the future refrigerator industry brand market share will be more concentrated, especially in the first two years under the home appliances to the countryside policy emerged The second and third-tier refrigerator companies will have difficulty in surviving.

The industry will accelerate the reshuffle not only for the refrigerator industry, but also bring opportunities for leading companies with brand and channel advantages to increase market share. At the same time, there are hidden dangers. Taking the air-conditioning category as an example, the reporter saw on the home appliance-to-country information management system website that in addition to well-known enterprises such as Gree, Midea, Haier, Hisense and Zhiliao, there are a large number of companies including Ripu, Putian, Hyundai, and Ditaier. , Soy, Wellcome, Kling and other consumers are quite unfamiliar small brands, most of these small brands are uneven quality, lack of or even lack of after-sales service outlets, after the frequent product quality problems in the countryside, home appliances to the countryside subsidy policy After exiting, whether the above-mentioned small and medium-sized brands can continue to undertake corresponding after-sales services is a problem that many people in the industry and consumers worry about.

III. Prospect: The policy continues to connect manufacturers Qi You “is not necessary”

According to the “Detailed Rules for the Operation of Home Appliances to the Countryside,” the three provinces and cities that began trials have already ended on November 30 last year. The follow-up promotion policies for home appliances to the countryside in 14 provinces (cities and autonomous regions) will expire at the end of November 2012. , other areas are due by the end of January 2013. The reporter learned from some manufacturers that at present, some home appliances to the countryside model products have stopped production. In several stores in Dashi and Nancun, Panyu District, reporters also found that products with home appliances to the countryside were rarely seen, and sales personnel said that they are now pushing for energy-saving products.

With regard to the issue of whether or not to continue the connection after the expiry of the home appliances to the countryside policy, the discussion in the industry was triggered as early as before and after the two sessions this year, and the controversy has continued. According to news recently, related ministries and commissions are brewing to continue this policy, including new policies aimed at promoting consumption of home appliances to the countryside and other new policies may be introduced before the end of the year, allegedly different from the past is that air conditioners, refrigerators, televisions and other large items are very There may be no longer subsidy, but instead it will be energy-saving appliances.

However, most of the industry’s opinion holds that the policy of home appliances going to the countryside is not necessary for continued access. Sun Dongwen, president of Skyworth Group, stated that as the most market-oriented home appliance industry in China, it does not need excessive policy intervention, and the first round of domestic demand policies such as home appliances for the countryside and trade-in for new products has overdrawn the home appliance industry's growth potential in the next few years. The effect of the new round of subsidy policy may not be obvious. Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce, also believes that Chinese companies cannot rely on policies to support them. Policy support includes home appliances going to the countryside, old-for-new trades, energy-saving subsidies, and the like. These are short-term actions and are not a permanent solution.

There are also views that if the country introduces a new support policy, it will still welcome it. “The state will certainly have a reason for its policy,” but Huang Tonghua, a spokesman for Zhigao, also stressed that the policies are temporary and cannot be used as an important factor in the development of the enterprise. "It can be 'icing on the cake,' but it should not be used as a 'strategy'." Liu Hongxin, general manager of Hisense Electric, believes that the market mechanism should be used to restore the essence of competition.