Home appliance leader system is ready to go

March 10, 2020

Home appliance leader system is ready to go In the second half of this year, the country will further strengthen energy conservation and emission reduction. In addition to the implementation of stricter new energy efficiency standards for multiple home appliances from October 1, the leader system for energy-saving appliances is also expected to begin implementation in October this year. This is a set of “combination punches” that China aims to improve the energy efficiency of the home appliance industry after the end of the energy-saving policy.

A top-level home appliance company yesterday (July 31) revealed to the reporter of the First Financial Daily that at present, the National Development and Reform Commission and the Energy Standards Commission are holding an internal meeting to discuss the implementation rules for the “leader system”, including entry thresholds and subsidies. Standards, etc. The scope of implementation is estimated to involve TVs, refrigerators, air conditioners, washing machines, and other major appliances. There are only 5 to 6 leading companies in each industry. Each company does not exceed 5 models of products and can receive subsidies for ultra-high energy efficiency products. “These companies must be representative, and they must be qualified in terms of patents, sales scale, and integrity.”

Another senior personage in the home appliance industry analyzed with this reporter that if there were no accidents, the leader system for energy-saving home appliances will be implemented in October this year. As of the time when the policy is formally announced, it is still unclear. "Only a few companies can participate and there are many exceptions." It is estimated that the sub-sectors related to household appliances are within five, and the companies involved in each sub-industry are also controlled within single digits or within five.

Therefore, the "Matthew Effect" of the home appliance industry will increase. The above-mentioned veteran believes that because only those companies with strong technical capabilities can be selected, it will be worse for companies with poor technology. In the future, the household electrical appliance industry will be “strong and permanent”. China is already a global household with a large number of household appliances, but it is still far from being a powerful country. Encouraging ultra-high energy efficiency products will help promote the improvement of household appliances energy conservation.

Three years ago, the relevant government departments of the country had formulated a "leadership system" plan. It was only until this year that it decided to implement it, and plans to include an incentive mechanism. According to the above-mentioned veterans, China’s home appliance stimulus policy has evolved: first, “home appliances going to the countryside” and “replacement for old”, and most enterprises in the industry can participate; after that, the policy of “energy saving and benefiting the people” has certain technology. Strong companies can participate; the “leadership system” is a company with particularly good technology to gain incentives.

In June of this year, after the expiration of the one-year energy-saving policy, the energy saving level in the domestic appliance market appeared to be “backward”. Without a subsidy of about 300 yuan, it is not easy for domestic power plants to raise the price of energy-saving home appliances. However, in the long run, they have to absorb additional costs, so everyone's mentality is to digest the inventory of energy-saving products. It will re-produce and sell products that are less energy efficient and relatively low-cost.

Therefore, the country's introduction of new energy efficiency standards for home appliances in October is aimed at consolidating energy-saving standards by raising the threshold of the industry. At the same time, by drawing lessons from the experiences of developed regions such as Japan, Europe, and the United States, the “leadership system” was implemented to encourage leading companies to continue to create more energy-efficient products. "When we begin implementation, we must give some sweetness. The leader system is a long-term mechanism, but whether the subsidies are long-term is not necessarily." The senior said.

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