Four Years of "Home Appliances to the Countryside" How to Pick Up 400 Billion Rural Consumption

Since December 2007, China has conducted home appliances to rural areas in Shandong, Henan, Sichuan, and Qingdao, and it has been nearly 4 years. The three provinces and one city that are pioneers will end their home appliances to the countryside policy by the end of November this year. By the end of January 2013, This policy will end nationwide.

From three provinces to one city, it expanded to 14 provinces, municipalities and autonomous regions, and it was introduced to the whole country in February 2009. From the beginning, it subsidized the color TV, refrigerator (including freezer) and mobile phones, and added new electric bicycles and computers. Water heaters and air conditioners.

The four-year deadline is approaching, and home appliances to the countryside will also be closed down as scheduled. However, the rural consumption that it once brought with it is difficult to forget, and the far-reaching impact on the home appliance industry will not be called.

Subsidy of 46.9 billion drives 408.2 billion yuan in household appliances consumption

According to the latest data provided by the Ministry of Finance, as of August 31, 2011, cumulative sales of home appliances to rural areas 18,110,000, total sales of 408.2 billion yuan. A total of 171,910,000 subsidies were recorded, 16.839 million were subsidized, and a total of 46.92 billion yuan was subsidized.

The person in charge of the relevant department of the Ministry of Finance told reporters that after the implementation of the home appliances to the countryside policy, the popularity of rural household appliances began to enter the fast lane. In 2008, rural households had an average of 30 refrigerators/freezers per 100 households. In 2009, the number of refrigerators/freezers increased by 7 units. In 2010, the number of refrigerators/freezers increased by about 13 units. In 2011, the number of refrigerators/freezers was estimated to have increased by about 10 units. This has surpassed the urban market in the early 1990s. The average annual growth rate is about 7-8 sets.

In 2010, it was the second year that home appliances went to the countryside and it was the year when sales were booming. The accumulated product sales amounted to 173.2 billion yuan, up from 64 billion yuan in 2009, with a cumulative increase of 170%.

The person in charge said that the implementation of the policy of home appliances to the countryside has played an indelible role in promoting the popularization and consumption of rural household appliances. In the past, when farmers purchased home appliances, they were highly sensitive to price, and they paid less attention to product quality, brand, and energy saving. Through home appliances to the countryside, farmers gradually shift their focus to product quality, after-sales services, energy-saving effects and brand awareness.

Reversing the crisis in the home appliance industry

The reporter learned from relevant departments that during the five years from 2003 to 2007, the average annual growth rate of the home appliance industry in China was 22%-23%. During the severe financial crisis of 2008 and 2009, the domestic and foreign markets shrank. The growth rate of the total output value of the household electrical appliance industry fell to 16.3% and 6.7%, and the growth rate of industrial sales fell to 14.5% and 3.3%.

In 2010, under the continuing role of the policy of home appliances to the countryside, the data showed encouraging changes. The industry's total industrial output value reached 964.2 billion yuan, an increase of 31.4% over 2009, and the industrial sales value was 918.4 billion yuan, an increase of 32.3%.

Xu Dongsheng, secretary-general of the China Household Electrical Appliances Association, told the reporter that China’s household electrical appliance industry is a highly related industry with overseas markets. The global financial crisis has had an impact on the real economy. Since the second half of 2008, there has been a negative growth in export of home appliances since 2009. In the first half of the year, almost all major export products had negative growth. The implementation of home appliances to the countryside has effectively reversed the difficult situation in the industry. The launch of the rural market activated the domestic market and enabled the home appliance industry to achieve rapid recovery.

Not only that, because of the home appliances to the countryside policy to participate in the company's management level, product performance, after-sales service and other aspects put forward higher requirements, which makes the rural market sales of home appliances energy efficiency has greatly improved for China's energy-saving emission reduction targets The realization of the foundation laid a good foundation. According to the calculation of the China Household Electrical Appliances Association, it is expected that during the entire implementation of the home appliances to the countryside policy, the contribution of energy-saving products to home appliances will reach 16.9 billion kwh/year, equivalent to 5.92 million tons/year of standard coal, equivalent to 13.53 million carbon dioxide emission reductions. Tons/year.

Xu Dongsheng told reporters that at the beginning of the implementation of the policy, all localities through the guidance and organization of home appliance production enterprises and sales companies joined hands to effectively improve the rural household appliances consumption, but also promoted the construction of rural distribution system, in particular, the home appliance sales channels have taken root The change from the original single, fragmented and non-standard to the scale, networking and orderly development. It is worth mentioning that under the promotion of home appliances to the countryside, some innovative channel models dominated by production companies are also born in rural areas. Haier’s “Sun Shun” and Feilong’s “multiple parties” are all created by manufacturing companies. Leading, rooted rural sales companies are the direct impetus for brilliant achievements in home appliances to the countryside, and they are also the guarantee for the sustainable development of rural markets in the future.

Xu Dongsheng also told reporters that while the sales network is gradually forming in the countryside, the after-sales service network is also being constructed at the same time as the policy requirements and the attention of the company. Home appliances to the countryside to the successful bidder's after-sales service level put forward a strict "entry threshold", and mature home appliance companies from the urban market experience also realized that after-sales service level is an important prerequisite for ensuring the sale of home appliances.

An Exploratory Public Policy

Xu Dongsheng analyzed that the role and significance of home appliances to the countryside is more special in China where public policy formulation and implementation experience is not yet abundant. It not only helps to shift the focus of China's fiscal policy from the investment link to the consumption link, but also increases transfer payments, which is conducive to the elimination of urban-rural economic imbalances. It is an exploration-oriented public policy.

During the implementation process, home appliances to the countryside have undergone many policy adjustments, such as the increase in product price limit, the increase in the type of tender, the simplification of the subsidy management method, and the optimization of the tendering procedures, but always adhere to the principles of openness, fairness, and fairness. The data shows that during the implementation process of home appliances to the countryside, half of the rural consumers have participated in the activities of home appliances to the countryside and the public participation in the policies is high. At the same time, this policy has attracted the active participation of a large number of manufacturing and distribution companies.

The home appliances to the countryside policy is still a trade policy, which has the effect of expanding the market and circulation. By guiding and organizing home appliance manufacturers and sales companies to join hands, while expanding the rural market, it can also promote the construction of the rural distribution system and standardize the rural household appliance market order.

Before the household appliances went to the countryside, the overall strength of home appliance companies that invested in the rural market was not balanced, which led to the varying levels of rural home appliance sales network at that time, resulting in the formation of fewer well-known brands in the rural market, opaque product information, and inadequate after-sales services. Home appliances to the countryside to promote home appliances companies to increase investment in the rural market, the rural channel management center of gravity down, the network has achieved significant results. At the same time, distributors in rural areas have also made considerable progress in management levels, promotion methods, and standardized operations.

Home appliances to the countryside

Bringing home appliances to the countryside is an important policy for expanding domestic consumption in China. It is of great significance to improving the production and living conditions of farmers and expanding rural consumption.

As an innovative policy to promote domestic demand, there are no precedents for home appliances to go to the countryside, and there are no similar implementation environments and processes in the international community that can be used for reference. Therefore, at the beginning of the construction of the implementation system, the policy established a policy of expanding after the pilot, and the implementation steps were gradual. Such a policy implementation design idea fully reflects the spirit of exploration and innovation, and is also a guarantee that home appliances to the countryside can achieve good results.

According to reports, the primary purpose of this policy design was fourfold: first, to improve the quality of life of farmers; second, to expand rural consumption; third, to establish an industrial production and circulation system oriented to the rural market; and fourth, to ease the excessive growth of trade surplus and Reduce trade frictions. In the process of implementation, coincided with the occurrence of a global financial crisis, the Chinese economy has been hit. The central government has also promoted home appliances to the countryside as an important measure to promote economic development, so as to support the home appliance industry against the financial crisis and promote the healthy development of the industry.

The implementation of the home appliances to the countryside policy began in December 2007 after 13 months of trials in three provinces, followed by promotion of product expansion in 12 provinces and finally to the whole country. In this process, home appliances to the countryside continue to expand the product range to meet the different needs of the majority of farmers.

According to reports, the policy of home appliances to the countryside has played a multifaceted role.

Strong driving rural consumption. Through direct subsidy to farmers, the government leverages subsidies, guides and promotes the formation of the rural consumer market scale, and guides production enterprises to design and produce home appliances that suit the characteristics of farmers' consumption and adapt to the rural consumer environment.

Reversing the predicament of the home appliance industry China is the world's largest producer and manufacturer of home appliances. Affected by the financial crisis, the entire export market has experienced a decline and a decline. At this time, it introduced the policy of home appliances to the countryside, digested some of the excess capacity of household appliances, adjusted the product structure for enterprises, and promoted the gradual adjustment of the industry. It also left room and time for industrial upgrading.

Effectively improve people's livelihood. Home appliances to the countryside so that everyone bought a good washing machine, refrigerator, color TV, to improve the living standards of farmers is also self-evident.

It also played a good role in energy conservation, emission reduction, resource conservation, and friendly environment. A large part of the products provided for home appliances to the countryside are energy-saving and environment-friendly. They are all designed in accordance with the electricity and water environment in rural areas. Therefore, they are welcomed by farmers and are conducive to friendly environment and resource conservation.

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