"Appliances to the countryside," the opportunity to conceal all kinds
2007 12 later this month, the Ministry of Finance and the Ministry of Commerce jointly released in the rural Buy
Home Appliances
Financial subsidy to the "home appliances to the countryside," the pilot activities, now 3 months up. So far, "home appliances to the countryside" to some extent to help domestic appliance brand has not been fully reclaimed open vast rural market.
However, due to the needs of the rural market characteristics and the current "home appliances to the countryside" activities in the various inadequacies exist, "home appliances to the countryside" to bring home appliance manufacturers sales opportunities, but also bring all kinds of potential crises.
"Appliances to the countryside," aims to turn domestic exports
Rural households is an important consumer group, household appliances huge consumption potential. China's rural households is a major component of Chinese families, accounting for 67.6% of the total households. China now has more than 50,000 towns, over 800 million rural population, more than 210 million households, 63.9% of the total population. In 2008, to 34 county-based Chinese home appliance market is expected to reach capacity of more than 2,300 billion yuan.
Chinese urban household appliances market capacity becoming saturated, but rural market to be cultivated. According to the Consumer Electronics Association statistics, the end of 2006, every hundred urban households owned
Refrigerator
90 sets, washing machines 95 sets, 135 color TV sets; and 22 rural refrigerator, and washing machines 43 sets of color TV 75. Household electrical appliance enterprises to seek a breakthrough in the market, have kept away from this huge market in rural areas. Make rural farmers increase income close to home appliances market began the popularization of the requirements, growth potential is enormous. 2006 per capita income of farmers reached 3,587 yuan, the Ministry of Agriculture in 2007 expected to exceed 4,000 yuan. Rural household appliances market in recent years, with 15% annual rate of steady growth, rural penetration of each household appliances increased by 1%, will increase more than 250 million sets (pieces) of market demand.
"Appliances to the countryside," the financial subsidy policy will stimulate rural demand, reduce dependence on export trade and promote business development. Government provided farmers to purchase household appliances designated 13% of the purchase price of financial subsidies for rural consumers in a certain stimulus. Conducting pilot activities in Shandong, Henan, Sichuan, the government set for the appliance type color TV, refrigerator and
Mobile
.
Home appliances have become an important source of China's trade surplus, China's home appliances for the international frequent trade friction prompted the Government to the need for super-capacity appliances in China to open up, "flood zone." China is the world's largest producer and exporter of home appliances in recent years, annual exports by half digested. In 2006, China only color TV, refrigerator, washing machine,
Air conditioning
, Mobile phones and other products, favorable balance of five reached 50 billion U.S. dollars, up 45%, accounting for 28% of the total surplus. "Appliances to the countryside" can transfer exports and reduce trade surplus and trade frictions, but also the household appliances industry digest excess capacity, reversing the general downward trend of corporate efficiency. 2007 third quarter, household appliances giant
Changhong
Stock up to 6.3 billion.
"Appliances to the countryside," the adverse long-term effects on business
"Appliances to the countryside," have achieved initial results, to some extent increase the participation of enterprises in the rural areas of product sales. According to "First Financial Daily" reported that participation in "bringing home appliances", the company have achieved good sales.
Konka
Pilot in three regions, through the "home appliances to the countryside" designated outlets, has sold more than 100,000 TV sets. Changhong the past three months has sold about 20 million units of "home appliances to the countryside" products. Haier in Shandong, Henan, home appliances chain in the successful sales of more than usual refrigerators doubled.
But "home appliances to the countryside" is not conducive to business products and technological innovation, which may affect their competitiveness in the mainstream market. Activities may encourage enterprises focus on low-end products, reducing its mainstream products and technologies in the R & D and innovation. For rural spending power, "home appliances to the countryside," the winning product prices low: 1,500 yuan less TV, refrigerator below 2,000 yuan, 1,000 yuan phone. The successful pilot activities in addition to the mobile phone business
Samsung
Are all outside the domestic enterprises.
Activities may extend the life behind the product is not conducive to industrial upgrading and technological progress of enterprises. 1500 yuan price cap makes the successful TV products are
CRT
TV, delaying its "delisting"; LCD and plasma TVs with the "home appliances to the countryside" no chance. 2,000 yuan is a double-door refrigerator also mainly low-end products below. "Appliances to the countryside" as the company provides clean up behind the product inventory or selling opportunities, contribute to the short-term corporate performance, but the long-term effects to be seen. Restrictions on the bid price of the product and corporate pursuit of profit, the decision for the activities of the enterprise could only be the original stock or low-cost, low-end products.
Activities in the enterprise too attached to let the low end of the rural market, while ignoring the mainstream market demand, there may eventually lose their competitiveness in the mainstream market. Products in rural market demands simple, practical, inexpensive, advanced in technology and design innovation of the requirements behind the mainstream market at home and abroad. Flat-panel TV out of the mainstream market, CRT's tide is bringing home appliances will be distributed enterprises in the flat-panel TVs and other new products and technical attention.
Table: the list of appliances to the countryside winning brand
Click here to view all
News Photos
I am an expert from China Quality Dress, usually analyzes all kind of industries situation, such as argon gas cylinder , hydrogen gas cylinder.
Processing your request, Please wait....
