Can the latest stimulus policies bring spring to t

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Can the new stimulus policy bring spring to the household appliance industry

after nearly a decade of rapid growth, the growth of the domestic home appliance industry has shown weakness. Since the fourth quarter of 2011, the growth rate of the domestic home appliance market has begun to show a downward trend. Whether the national consumption promotion policy will be adjusted in 2012 will largely determine the future performance of the home appliance industry, and it is not ruled out that individual regions and products will implement temporary stimulus policies

demand overdraft growth shows fatigue

the 2011 financial report recently released by major power giants shows that China's home appliance industry has experienced a high-speed growth trend that has not occurred in the past decade in 2010. With the gradual withdrawal of the three domestic demand policies of home appliances to the countryside, energy-saving and people-friendly projects and home appliances trade in in in the second half of the year, the growth of the domestic home appliance industry also began to show fatigue

the growth of household appliance industry slowed down

since the world financial crisis, government departments have successively introduced policies of household appliances to the countryside, replacing the old with the new, and saving energy and benefiting the people to start the domestic demand market. The subsidy policy has driven the rapid growth of China's home appliance market in the past two years, but at the same time, it has also accelerated the cultivation and development of China's home appliance market to a certain extent, raising the overall consumption capacity of the new material industry. With the expiration of relevant policies, the growth rate of domestic home appliance market has begun to show a downward trend since the fourth quarter of 2011

according to the 2011 financial reports of household appliance enterprises, the performance of many companies fell significantly: Meiling electric appliance (000521) achieved an operating revenue of 9.004 billion yuan in 2011, an increase of 9.44% year-on-year. The net profit was 106.5791 million yuan, a year-on-year decrease of 67.28%; KELON's revenue in 2011 was 18.49 billion yuan, a year-on-year increase of 4.51%. The net profit was 227million yuan, a year-on-year decrease of 61.21%; Shenzhen Konka expects a net profit of 10million yuan to 30million yuan, a year-on-year decline of 64.26% to 88.09%

in addition, although the performance of some leading household appliance enterprises maintained a growth trend in 2011, the growth rate was far lower than that of the same period in 2010. Midea (000527) had a total revenue of 93.1 billion yuan in 2011, an increase of 25% year-on-year, and a net profit of 3.7 billion yuan, an increase of 18% year-on-year. In 2010, the growth rates of Midea's total revenue and net profit were 57.7% and 69.24% respectively. Gree Electric Appliance (000651) had a revenue of 83.595 billion yuan in 2011, a year-on-year increase of 37.48%. The net profit was 5.245 billion yuan, a year-on-year increase of 22.67%. However, compared with 2010, the revenue and net profit of Gree increased by 42.62% and 46.46% respectively, and the growth rate of gree in 2011 decreased by 12% and 52% respectively

Ligang, chief researcher of the strategy group of Samsung Economic Research Institute, said that the policy stimulus in the past two years was the main driving factor for the substantial growth in sales and profits of Haier, Midea, Gree and other domestic home appliance manufacturers. Government subsidies became the main driving factor for the sharp increase in net profits, even accounting for more than half of the pre tax profits of some enterprises. With the expiration of these stimulus policies in 2011, it has brought pressure to the operation of domestic household appliance enterprises

hejiqiong of Beijing zhongyikang times Market Research Co., Ltd. believes that due to the overdraft of the overall consumption capacity of China's home appliance market in advance, there were negative factors in the home appliance market in 2011, such as the overall excess capacity of home appliances, the saturation of the ownership of 100 households of major home appliance varieties in the urban market, the downturn of the real estate market, and the rise of raw material operating costs. Moreover, these negative factors will continue until 2012, and the sales situation of home appliance market this year is not optimistic

consumption upgrading induces enterprises to accelerate transformation

in view of the current difficulties faced by domestic household appliance enterprises, accelerating the adjustment of industrial structure and technological upgrading has become an effective weapon to resist market decline. According to the monitoring data of zhongyikang, China's household appliance industry showed a trend of comprehensive product upgrading in 2011. Take the white electricity industry as an example. In the field of air conditioning, the retail volume share of variable frequency air conditioners is close to 50%, with a year-on-year increase of 55%. In the washing machine market, drum washing machines are still the "engine" driving the rapid growth of the market, with retail sales accounting for more than 44%. From the perspective of the growth trend of the refrigerator market, the fracture of the three door sample is always broken on both sides, and the retail sales of high-end products such as multiple doors and double doors account for 60% of the overall refrigerator market. In addition, in the field of color TV, the penetration rate of smart TV has reached 33% in December 2011

consumption upgrading has attracted the transformation steps of listed enterprises of major power companies. Qingdao Haier (600690) pointed out in its annual report that while the growth rate of the household appliance industry slowed down, the structural change of the industry growth was significant, and the proportion of medium and high-end product sales increased. Green environmental protection, intelligence, artistry and humanization have become the mainstream trend of white household appliances, and medium and high-end household appliances are increasingly favored by consumers. Haier is also strengthening the expansion of the medium and high-end home appliance market

at the "China Household Appliance Development Summit Forum" held in Shanghai recently, bu Zhengfa, President of the China Light Industry Federation, said, "The consumption of household appliances is showing the characteristics of diversification and personalization. The demand for high-end consumer goods and services is developing rapidly, and a large number of medium and low-end products are facing upgrading. In order to expand people's demand for household appliances, domestic household appliance enterprises are required to strengthen product development, accelerate transformation and upgrading, and adapt to the changes and needs of consumption structure."

Wang Yong, Secretary General of the brand China industry alliance, believes that the development direction of Chinese household appliance enterprises will inevitably be to pursue the increase of the sales proportion of energy-efficient products and the satisfaction of consumption upgrading needs. Whether the technological innovation ability of domestic household appliance enterprises can be rapidly improved to meet the requirements of market competition and changes in consumption structure will be the key to their success in the future

there is still potential for growth

in the view of the industry, although the performance of home appliance enterprises generally fell in 2011, at present, the rigid demand of the domestic home appliance industry is still there, and the market growth fundamentals have not changed. With the acceleration of the upgrading and popularization of high-end products, there is still potential for the future growth of the home appliance market

"at present, the consumption potential of the domestic tertiary and tertiary markets has been stimulated, and the upgrading of products in the primary and secondary markets is in the ascendant. It is estimated that the scale of China's home appliance market is still expected to reach 1.3 trillion yuan in 2012, helping domestic instruments establish detection methods and standard yuan, with a year-on-year increase of more than 8%, but the growth rate will be about 3 percentage points narrower than that in 2011." Hejiqiong said

at the same time, when the new household appliance stimulus policy will be introduced is more concerned and expected by the industry. In early March this year, Minister of Commerce chendeming said publicly during the "two sessions" that the policy of sending home appliances to the countryside in 28 provinces will continue until the end of 2012, and relevant departments are currently studying and introducing new policies to expand consumption

in this regard, He Wei, an analyst at Everbright Securities (601788), believes that the Ministry of Commerce will introduce new consumption promotion policies, which are likely to include new household appliance stimulus policies. It is expected that the probability of introducing new subsidies for energy-efficient household appliances and subsidies for low-income people is high, and the subsidies for low-income people are likely to be combined with the demand for household appliances driven by affordable housing, thereby driving the consumption of low-end household appliances

Ligang said that whether the national policy will be adjusted in 2012 will largely determine the future performance of the home appliance industry, and it does not rule out the possibility that some regions and products will implement temporary stimulus policies. At the same time, the construction of affordable housing to replace the commercial housing market is also expected to become an engine to drive the demand for household appliances

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