Policy review:
As a response to the 2008 global financial crisis, boost consumption in China an import ant policy – policy of home appliances to the countryside to take a "quit".
Ministry of finance, Ministry of Commerce, the Ministry recently jointly issued a notice on November 30, 2011, Qingdao, Shandong, Sichuan, Henan, and home appliances to the countryside policy ended on schedule in three provinces and one city. As of December 1, 2011, their place of household registration in three provinces and one city of the former subsidy to buy home appliances to the countryside (including local autonomy increased variety), will not enjoy the financial subsidy policy.
Notification clearly, January 6, 2012, winning region is limited to three provinces and one city manufacturer of home appliances to the countryside, sales companies, and all three provinces and one city home appliances to the countryside for the record of sales outlets in the home appliances to the countryside information management system function Authority ceased. On March 1, 2012, the three provinces and one city in the financial sector in the information systems audit payment feature is turned off.
Notice also emphasized that when the policy expires, home appliances to the countryside in three provinces and one city marketing enterprise to urge the original record sales outlets whose immediate take down the "home appliances to the countryside to specify store" identity, must not use names of home appliances to the countryside to any form of publicity. Not complete the sales of home appliances to the countryside in three provinces and one city, can be used as ordinary commodities continue to sell.
Data show that in order to expand rural consumption, improving farmers ' quality of life, while solving household electrical appliance enterprises to expand domestic demand exports reduced inventory increase, the Ministry of finance and Ministry of Commerce on November 15, 2007 on home appliances to the countryside policy, subsidies given to farmers to buy household appliances 13%. Policies since the launch of China's household electrical appliance consumption Significantly, by the end of June 2011, cumulative sales of 165 million units home appliances to the countryside, generated total sales of 366.37 billion yuan, and cumulative subsidies amount to $ 42.5 billion.
Starting from December 1, 2007 in Shandong, Henan, Sichuan in the three pilot, to farmers to buy color televisions, refrigerators and products after giving 13% subsidies;
On December 1, 2008, the home appliances to the countryside policy was extended to 14 provinces and cities such as Inner Mongolia, Liaoning, Anhui, Hubei, policy enforcement for a period of 4 years, increase washing machine for subsidized products, sales quota for each type of product per unit 1;
On February 1, 2009, the home appliances to the countryside policy was extended to the whole country;
On March 5, 2009, the home appliances to the countryside increased subsidies to 10 categories, including air conditioners, computers, water heater, microwave oven, for each category of product restriction of 1 per household increased to 2 units;
On January 26, 2010, color TVs, cell phones-Cap 1 time increase to $ 7,000 and $ 2000, air conditioners and other products-Cap increase 25% per cent maximum allowances remain the same.
Home appliances to the countryside policy since its introduction, results, consumption results. As of the first half of 2011, the national sales of home appliances to the countryside products 50.938 million, generated total sales of 124.575 billion yuan, up growth and 56.7%, respectively. As of June 30, 2011, cumulative sales of 165 million units home appliances to the countryside, generated total sales of 366.37 billion yuan.
It is understood that originally home appliances to the countryside in accordance with a 4-year plan to advance implementation of the three provinces and one city to end the end of November of this year, follow-up to promote the province as planned last ended at the end of January 2013.
Policy impact on the market
In the Ministry of finance and Ministry of Commerce, guided by home appliances to the countryside as a national policy has been implemented for nearly four years. From the first three provinces and one city region pilot to nationwide roll out implementation now, from the first four classes that implement subsidies product, color TV, refrigerator, freezer, mobile phones now 19 categories of subsidies. Home appliances to the countryside was Supported by companies, channels, marketing consumer support and welcome. In its four-year, while home appliances to the countryside such as low prices into the prices bid in a selling and posing as dealers and successful models such as "trick supplement" behavior. But as a response to the 2008 international financial crisis, import ant initiatives to actively expand consumption and spur domestic demand. Home appliances to the countryside to the whole enterprise, channel, level three or four market demand has played a positive role in promoting.
Rapid release level three or four in home appliances market shows high growth
Market performance in the first place, and home appliances to the countryside since the implementation of policies, for three or four-level market demand is clear. As of July 2011, through realization of cumulative sales 174.48 million appliances home appliances to the countryside policy implementation to achieve appliance cumulative sales amount totals $ 387.1 billion. Color televisions, refrigerators, washing machines, air conditioners accounted for four product sales of around 80%, became the main benefit of home appliances to the countryside market products. Data show that benefit four major home appliances refrigerators became the largest category, Haier and midea, meiling mainstream companies, such as ultra-50% of the products are sold in three or four-level market, led directly to the product popularity of this market segment. From the National Bureau of statistics figures, 2008 refrigerator product after hundreds of farmers have significantly higher.
Competition format changes created many small enterprises
Second from machine enterprise end analysis, appliances countryside implementation years yilai, appliances market of competition situation occurred has changes, 2007 zhiqian, due to three or four level market of demand was does not to release, entire appliances industry of competition on concentrated in special one or two level market, and these subdivision market of products maintains volume are is high, brand Enterprise Zhijian of competition more for predatory competition, for those competitiveness relative weaker of enterprise speaking, difficult to in so fierce of market in the survival, market Shang participation competition of brand number relative less. 2007 years zhihou, as three or four level market demand of constantly release, market of competition industry State also occurred has fundamental changes, appliances market of competition began became increasingly free, brand of survival obvious rose, participation market competition of brand number obvious increased, to TV for cases, by appliances market of benefit, such as sokkia, and Le China, small brand quickly growth, in three or four level market accounted for was place.
Improve brand value improvement channel sinks
Again from the Canal-side analysis, home appliances to the countryside before implementation, three or four levels of market's needs are. Restricting the release of three or four-level market mainly due to the channel is not smooth enough, companies are willing to spend a lot of costs to complete the construction of three or four marketing channels. After the implementation of home appliances to the countryside, "channel is King", "service is King" sales philosophy will determine user reputation within the brand in a fixed area, under the Government's financial support and guidance of, mainstream companies have begun building their own channels, level three or four market "Happy Valley enclosure", complete enterprise channel sink. From the mainstream market earnings, 2010 us three or four county-level market with 1500 home service outlets, so far mainly in mainland China county-level network coverage at 100%. Appliance giant Haier has completed a day plus contain, 6,042 stores under its Haier San、siji market expanding brand awareness and influence in the country's main channel. TCL group in the second half of 2011 will continue to strengthen national level 345 marketing channel construction, particularly construction of TCL brand stores, first pilot in 6 provinces, aims to add 800 TCL brand stores in the second half, after further promotion. It is learnt that the TCL TCL home appliances Group brand stores will first collection and multimedia products in the future will be integrated into TCL communication mobile products.
