The four-year-old home appliances to rural policy has come to an end. The first batch of home appliances to rural areas in Shandong, Henan, Sichuan, and Qingdao will be due to expire in November this year. Other regions will expire in November next year. Xu Dongsheng, general secretary of the Household Electrical Appliances Association, said that at present, the Association has not received information on the policy of extending home appliances to the countryside. Industry sources said that after the expiry of the home appliances to the countryside policy, the company's after-sales service problems will face the test.
A large number of small brands may face elimination
“The time for reshuffling is approaching,†said Liu Heqing, an expert on home appliances. “In the past two years, the duodenal sales of the household appliance industry have already saturated the primary and secondary markets, and the three- and four-tier cities and rural markets have also become saturated. It is almost impossible to maintain the momentum of the previous two years. The fastest of this year, at the latest in the first half of next year, will be seen in the financial reports of home appliance listed companies."
Another industry insider who asked not to be named stated that “a lot of companies have obtained state subsidies, fraudulently fraudulently subsidized state subsidies, and made companies and industries prosperous and prosperous. However, they actually cause a lot of inventory and accumulate in various sales links. Manufacturers, distributors Agents at all levels must share the consequences."
The source said that under the support of home appliances to the countryside, the number of Chinese household electrical appliances has remained high.
“The number of successful washing machines for home appliances to the countryside has reached 102, and nearly 200 refrigerator companies have won the bid. The vast majority of 'brands' have never been heard in first-tier cities, and if the relevant policies are terminated, it will lead to shrinking rural household appliances consumption. Big brands have enough capital to spend the winter, and small brands are facing a crisis of elimination,†said the person in the industry.
Follow-up service issues highlighted
The policy on home appliances going to the countryside in Beijing began on February 1, 2009 and was implemented until the end of January 2013. As for whether Beijing will continue after the expiration of its policy, it is still not clear which will ultimately depend on the policies of the central and Beijing government departments.
Industry expert Liang Zhenpeng believes that after the home appliances to the countryside policy is over, it will surely have an impact on the home appliance industry and consumer shopping psychology. "After the end of the policy, 13% of the financial subsidies will be gone. Many of the products that are sold to rural areas will have significant price increases, which will also directly undermine consumer shopping enthusiasm."
“In addition, the industry reshuffle caused by intensified competition has also made the issue of follow-up service for home appliances to the countryside highlighted.†Liang Zhenpeng said, “Once the companies are eliminated, who will continue to assume the warranty service they promised to consumers?â€
Liang Zhenpeng reminded consumers to buy home appliances to the countryside, but also need to be alert to those unscrupulous traders in the name of "home appliances to the countryside" selling counterfeit products. All products that have been approved for permission to go to the countryside have a uniform identification card. The logo is printed and pasted by the government. Consumers in rural areas must be conscious about the purchase. Do not believe in the introduction of some unscrupulous merchants. Ask for formal tax invoices to ensure that there are no surprises when applying for subsidies.
â– Data
Decrease in policy stimuli
In December 2007, the first batch of home appliances to the countryside policy pilot, the state gave 13% of the product price subsidies to the countryside. Afterwards, the government adjusted the policy several times and successively extended the policy to the whole country. The number of models of the products increased from the initial 10 to 80, and the ceiling price of products for the rural areas continued to increase.
The implementation of home appliances to the countryside in the early stage of the implementation of home appliances sales has immediate effect. According to data released by the Ministry of Finance, at the end of October 2008, the first batch of pilot three- and one-city sales subsidy “home appliances to the countryside†exceeded 3.5 million units. In the following two years, the number of products sold in the countryside has doubled. In 2010, the country's total sales of home appliances to the countryside totaled 77.18 million units, with sales of 173.2 billion yuan.
However, in the first half of this year, the stimulatory effects of policies on the domestic appliance market are diminishing. According to statistics from the Ministry of Commerce, in April this year, sales of home appliances to the countryside were 3.298 million units, a year-on-year decrease of 31%, while in March sales were 14.715 million units, a huge drop. May sales were 5.78 million units, an increase of only 0.9% year-on-year.
A large number of small brands may face elimination
“The time for reshuffling is approaching,†said Liu Heqing, an expert on home appliances. “In the past two years, the duodenal sales of the household appliance industry have already saturated the primary and secondary markets, and the three- and four-tier cities and rural markets have also become saturated. It is almost impossible to maintain the momentum of the previous two years. The fastest of this year, at the latest in the first half of next year, will be seen in the financial reports of home appliance listed companies."
Another industry insider who asked not to be named stated that “a lot of companies have obtained state subsidies, fraudulently fraudulently subsidized state subsidies, and made companies and industries prosperous and prosperous. However, they actually cause a lot of inventory and accumulate in various sales links. Manufacturers, distributors Agents at all levels must share the consequences."
The source said that under the support of home appliances to the countryside, the number of Chinese household electrical appliances has remained high.
“The number of successful washing machines for home appliances to the countryside has reached 102, and nearly 200 refrigerator companies have won the bid. The vast majority of 'brands' have never been heard in first-tier cities, and if the relevant policies are terminated, it will lead to shrinking rural household appliances consumption. Big brands have enough capital to spend the winter, and small brands are facing a crisis of elimination,†said the person in the industry.
Follow-up service issues highlighted
The policy on home appliances going to the countryside in Beijing began on February 1, 2009 and was implemented until the end of January 2013. As for whether Beijing will continue after the expiration of its policy, it is still not clear which will ultimately depend on the policies of the central and Beijing government departments.
Industry expert Liang Zhenpeng believes that after the home appliances to the countryside policy is over, it will surely have an impact on the home appliance industry and consumer shopping psychology. "After the end of the policy, 13% of the financial subsidies will be gone. Many of the products that are sold to rural areas will have significant price increases, which will also directly undermine consumer shopping enthusiasm."
“In addition, the industry reshuffle caused by intensified competition has also made the issue of follow-up service for home appliances to the countryside highlighted.†Liang Zhenpeng said, “Once the companies are eliminated, who will continue to assume the warranty service they promised to consumers?â€
Liang Zhenpeng reminded consumers to buy home appliances to the countryside, but also need to be alert to those unscrupulous traders in the name of "home appliances to the countryside" selling counterfeit products. All products that have been approved for permission to go to the countryside have a uniform identification card. The logo is printed and pasted by the government. Consumers in rural areas must be conscious about the purchase. Do not believe in the introduction of some unscrupulous merchants. Ask for formal tax invoices to ensure that there are no surprises when applying for subsidies.
â– Data
Decrease in policy stimuli
In December 2007, the first batch of home appliances to the countryside policy pilot, the state gave 13% of the product price subsidies to the countryside. Afterwards, the government adjusted the policy several times and successively extended the policy to the whole country. The number of models of the products increased from the initial 10 to 80, and the ceiling price of products for the rural areas continued to increase.
The implementation of home appliances to the countryside in the early stage of the implementation of home appliances sales has immediate effect. According to data released by the Ministry of Finance, at the end of October 2008, the first batch of pilot three- and one-city sales subsidy “home appliances to the countryside†exceeded 3.5 million units. In the following two years, the number of products sold in the countryside has doubled. In 2010, the country's total sales of home appliances to the countryside totaled 77.18 million units, with sales of 173.2 billion yuan.
However, in the first half of this year, the stimulatory effects of policies on the domestic appliance market are diminishing. According to statistics from the Ministry of Commerce, in April this year, sales of home appliances to the countryside were 3.298 million units, a year-on-year decrease of 31%, while in March sales were 14.715 million units, a huge drop. May sales were 5.78 million units, an increase of only 0.9% year-on-year.
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