Appliances To The Countryside: The Market Winter Why “thriving”
In the current difficult economic times, little hot market, from government to enterprises for the “rescue” efforts. Start in the consumer, the policy of stimulating domestic demand, most recently in the national implementation
Appliances to the countryside
“Outperformed others.” Economic sector analysis,
Home Appliances
The success of the countryside, due to government subsidies in place, the market launch in a timely manner, accurate selection of products, of which the operation of science and respect for the market, breaking the monopoly of other ideas for start-up and expansion of consumer demand to bring a lot of inspiration.
Consumption is expected to lever 900 billion yuan
Home appliances to the countryside under the policy, farmers buy
TV
,
Refrigerator
,
Mobile
,
Washing machine
Designated appliances and other species, country by a certain percentage of sales price for direct subsidies. This year, motorcycles, computers,
Water heater
And
Air conditioning
Other products included in the scope of policy subsidies, “car to the countryside” is also being promoted. According to statistics, from 2007, Shandong, Henan, Sichuan province, started three pilot projects to promote to the nation this year in February, the country has sold 3.5 million units bringing home appliances products (Division), sales of 50 billion, tens of thousands of farmers to buy the Italian lower prices of home appliances, to improve the standard of living.
“Appliances to the countryside are indications that farmers may benefit, companies have the market, the government win popular support and economic development of the good results obtained in the current complex economic situation, it is bringing more warmth.” Shaanxi Market Construction Department of Commerce, said the Commissioner for Ning.
Industry believes that the home appliances to the countryside is a win-win move. China’s home appliance industry since last year, exports slow down significantly, while there are more than 200 million rural households, household appliances increased by 1 percentage point of each penetration, increase the demand for each household appliances more than 200 million units. Appliances to the countryside policies for rural consumers to purchase low-cost appliances, access to affordable, while also helping appliance enterprises to new market space.
On this basis, home appliances to the countryside will effectively promote economic growth. Expanding domestic demand is the fundamental way to ensure long term growth in China, but the greatest potential to expand domestic demand in rural areas. It is estimated that home appliances to the countryside to promote the implementation of the next 4 years, can total more than 9,000 billion boost to consumption and thus help tap the potential of the rural consumer market, will help to expand domestic demand and promote steady and rapid economic development.
Three success factors:
Demand, supply full and timely subsidy
Economic Research Institute of Shaanxi Academy of Social Sciences, said Zhang Bao Tung, China’s policy of stimulating rural consumption, exploration and hard work over the years, ushered in significant turning point for home appliances to the countryside, stems from household electrical appliances with the current high degree of fit of rural consumption.
30 years reform and opening up, China’s rapid economic and social development in rural areas, farmers growing material and cultural needs. However, a long time, the limited purchasing power of farmers, and underdeveloped infrastructure, products do not meet the actual demand and other reasons, restricting the rural consumer market prosperity and development. Zhang Bao Tong said: “A few years many rural electricity, roads, communication barrier, poor, consumer appliances would be impossible. Coupled with air conditioning, refrigerators and other products more expensive, rural people can not afford, could not afford.”
Zhang Bao Tong analysis that, after years of increased investment and promote the construction of new socialist countryside, the vast rural areas, especially in central and western areas of infrastructure in rural areas has made considerable progress. More and more remote rural highways, and electricity and secure, and communication networks also covered, as refrigerators, air conditioners, mobile phones, computers and appliances more paved the way to enter rural markets. In addition, the income of peasants steadily increased in recent years, the state also increased in rural education, medical care, pension and other social security investment, and gradually lift the worries of farmers, the rural market potential demand for the gradual dominance. Household electrical appliances as the quality of life of rural people to improve the primary products, there needs to expand, upgrade propensity to consume, but not limited to “marriage” is limited mainly consumption.
More importantly, after full market competition in home appliance industry, embark on “the small profits run”, to meet the consumption level in rural areas.
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