Appliances policies across the country have been "off supply"

Appliances policies across the country have been "off supply" The policy of home appliances to the countryside led to significant sales of home appliances. According to the latest data from the Ministry of Commerce, in 2012, the country did not include Shandong, Henan, Sichuan, and Qingdao to sell 79.913 million home appliances to the countryside, achieving sales of 214.52 billion yuan. Statistics show that during 2009-2011, the average sales growth of major home appliances, such as color TVs, air conditioners, refrigerators, and washing machines, was maintained at more than 20%. Especially in 2010 and 2011, sales of air conditioners nationwide achieved rapid growth of 31.85% and 33.74%, respectively.

This month, all home appliances to rural areas will all expire. Since the trials began in some cities in 2007 and were fully implemented in 2008, the policy of home appliances to the countryside has drastically boosted sales while controversies have also been heard. According to industry insiders, the industry will face a structural transformation this year in the context of the withdrawal of home appliances to the countryside. The most affected are the small and medium-sized household appliances. Due to relatively weak R&D, capital, and channel strength, such enterprises may face severe challenges after exiting the policy. It is worth noting that the sales of home appliances have been substantially increased in the initial stage of the implementation of home appliances to the countryside policy. Growth has triggered the impulse of manufacturers to expand production capacity. Due to the gradual saturation of market demand, the sales rate of the home appliance industry in 2012 fell to the lowest level in five years. According to the data of the Ministry of Commerce, during the period from 2009 to 2012, the year-on-year growth in the sales volume and sales growth of home appliances to the countryside showed a trend of decline year by year. From the perspective of the inventory of major products, between 2010 and 2011, the year-on-year growth rate of washing machines, refrigerators, and air conditioners was more than 20%. Although the growth rate of inventory in 2012 declined, it was not enough to reverse the situation of overcapacity. It is not difficult to see that the policy stimulus effect diminishes year by year.

Industry insiders believe that in the context of the policy's definitive withdrawal, 2013 will be the year for the home appliance industry to enter a structural transformation. In fact, the exit of home appliances to the countryside policy has little impact on large-scale home appliance companies. Due to abundant funds, advanced technology, and diversified channels, large-scale home appliance companies can go their own way to the countryside and continue to sink their sales focus in the 3rd and 4th markets. However, the situation faced by small and medium-sized home appliance companies is severe. In recent years, some small and medium-sized home appliance companies have relied on subsidy policies, and they lack the financial strength and have no incentive to develop new products. After escaping from the umbrella of policies, small-scale enterprises with difficult operations may face the situation that they are eliminated or merged by the market.

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