2012 Home Appliance Industry Growth Weakness New Deal Relay or Hope

September 25, 2019

In the past three years, China’s home appliance industry has carried too many myths of rapid growth. The policy of home appliances going to the countryside and replacing old ones with new ones has given the Chinese economy the first signs of recovery and rural market opening. However, standing at the starting point of 2012, "flowers" have been paralyzed, and the colors of "jin" are not. Appliance analyst Liang Zhenpeng said that in 2012 China's home appliance industry may be even slower than in 2011.

On the first day of 2012, Chigo could not wait to launch new antibacterial copper inverter air conditioners in many cities across the country, which cost 600 to 800 yuan more than ordinary air conditioners. Li Xinghao, chairman of the board of directors of Zhigao Group, stated that in 2012, he no longer pursued the expansion of quantity, but instead strived to increase the added value of products. More and more companies are realizing that maintaining the genes for rapid growth in the past two years is no longer the only way to continue to rely on sales to drive the growing corporate body.

According to a data provided by the home appliance research company Zhong Yikang, in the first 10 months of 2011, the domestic refrigerator market achieved a total retail sales of 783 billion yuan, an increase of only 1.3% year-on-year; the retail sales of the washing machine market reached 46.6 billion yuan, a year-on-year increase of 9.1%. However, the increase in retail sales was only 6.6%. Air-conditioning declined significantly. In the first three quarters, the retail sales growth was 17.7%, 9.2%, and -14.8%, respectively.

Appliance analyst Liang Zhenpeng said that in 2012, whether it is white goods or black appliances, the market will not have significant improvement. The color TV market has basically completed the replacement of CRT TVs with flat-panel TVs, and it is difficult to present a relatively rapid growth momentum; white goods are affected by the real estate market and the growth is weak.

The upcoming appliance support for the New Deal may bring hope to the home appliance industry.

On January 5, the National Commerce Work Conference stated that expanding consumer spending has become one of the key tasks of the 2012 business system. The meeting called for summing up the experience of home appliances to the countryside and old-fashioned exchange, and researching and formulating alternative connection policies in a timely manner. Industry sources have determined that support for energy-saving and environmentally friendly products may become the focus of the continuity policy.

Skyworth Group spokesperson Li Cong wanted to say that if the state introduces new policies to subsidize energy-saving and environmentally friendly products, the scope of this subsidy will be very wide, and it will promote the growth of the home appliance market. Hong Shibin, deputy director of the China Home Appliances Commercial Association Marketing Committee, also stated that the opening of the New Deal is definitely a good thing for the industry.

However, a well-known enterprise in Guangdong said that the previous support policies have already severely overdrawn the market. Consumers then have little confidence in consumption, and the ultimate effect is hard to judge.

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