Recently, many places have made substantial moves in encouraging consumption of household appliances and other categories.
On April 28, the general office of Guangdong Provincial People’s government issued a notice on printing and distributing several measures for further promoting consumption in Guangdong Province, involving specific measures in four aspects: encouraging automobile consumption, promoting household appliance consumption and issuing consumption vouchers.
According to the official account of Shenzhen Municipal Bureau of Commerce, 500million yuan of consumption vouchers have been issued to Shenzhen consumers through jd.com and other platforms since April 28. Among them, the categories of 400 million yuan shopping vouchers cover consumer electronics, etc.
Jiangxi will carry out the activity of “2022 Jiangxi bulk commodity consumption season” from May 1 to July 31. The activity focuses on the three main bodies of automobile, refined oil and household appliances. During the event, through financial support, enterprise concessions, platform profit transfer and other channels, provincial, municipal and county governments at all levels invested 500 million yuan, leveraging merchants’ enterprise investment and profit transfer of 1.5 billion yuan, with a total preferential amount of 2 billion yuan.
Previously, the Beijing Municipal Bureau of Commerce issued a notice that in order to promote consumption upgrading, Beijing issued green energy-saving consumption vouchers to consumers in Beijing from April 18 to September 30, 2022 to encourage consumers to buy and use green energy-saving products.
“This round of measures to promote household appliance consumption, mainly in the form of ‘issuing coupons’, not only continues the subsidy of’ replacing old appliances with new ones’, but also radiates the construction of recycling and environmental protection industrial chain, which will become the ‘normal’ for all localities to encourage the implementation of household appliance industry consumption policies this year.” Zhang Jianfeng, Executive Deputy Secretary General of China household appliance business association, said in an interview with Securities Daily.
At present, China is at the peak of household appliance scrapping. According to the national development and Reform Commission, China has eliminated 100 million to 120 million waste household appliances every year. However, at present, the key field of waste household appliances recycling system is still the weak link of the industrial chain. The promotion of replacing the old with the new at the consumer level, coupled with the guidance of the state at the policy level, is expected to accelerate the rapid construction of China’s household appliance recycling industry chain.
“From the perspective of industry, this round of policies focuses on improving the consumption of green and energy-saving household appliances, accelerating the elimination of high-energy household appliances, and promoting household appliance enterprises to speed up the construction of recycling and treatment system. At the same time, it advocates accelerating the development of home decoration industry, which is expected to drive the upgrading of this industrial chain.” Home appliance observer Liang Zhenpeng believes.
Guotai Junan Securities Co.Ltd(601211) Zi Meng believes that the issuance of consumption vouchers by the government is conducive to promoting short-term consumption and restoring consumer confidence on the one hand, and alleviating the operating pressure during the economic downturn through indirect subsidies to businesses on the other hand. At the same time, consumption coupons have a certain multiplier effect. For every 1 yuan of consumption coupons, about 2 to 3 times of direct consumption can be generated. The areas covered by consumer vouchers mainly include basic household appliances, automobiles, etc. with favorable policies, these industries previously affected by the epidemic are expected to usher in marginal improvement.
All localities have launched measures related to household appliance consumption, which is related to the consumption promotion policy recently issued by China.
On April 25, the general office of the State Council issued the opinions on further releasing consumption potential and promoting sustainable recovery of consumption, proposing to encourage large-scale consumption such as automobiles and household appliances and guide financial institutions to enrich large-scale consumer financial products. At the same time, it pointed out that we should promote new consumption, accelerate the organic integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) .
Home appliance expert Liu buchen said: “at present, the introduction of supporting measures around the country is a substantive implementation of the national consumption promotion policy. In 2022, the situation of the home appliance industry is still relatively severe, and many enterprises’ factories are in the state of shutdown and closed-loop production. Home appliances and automobiles are the pillar industries in many places. The introduction of substantive measures in many places will promote the local economic development, the resumption of work and production of enterprises and the upgrading of industrial structure.”
Facing the severe challenges of many external environments, such as rising raw material prices, tight shipping capacity and declining demand outside China, the home appliance market has also been in a downturn, and the overall performance of enterprises is under pressure.
According to ovicloud, in the first quarter of 2022, the retail sales of household appliances in China reached 143 billion yuan, a year-on-year decrease of 11.1%; The online home appliance retail market fell 7.5%. According to the data of the General Administration of customs, from January to February 2022, the export amount of China’s household appliances was 89.702 billion yuan, a slight decrease of 5.9% year-on-year.
The introduction of measures to promote household appliance consumption in various regions will substantially promote the response of industries and enterprises to the crisis and boost their performance. However, this year, the home appliance industry still faces multiple challenges.
\u3000\u3000 “At present, the fundamentals affecting household appliance consumption have not fundamentally improved. The downturn in the real estate market and the impact of the epidemic in the stock market of most household appliances make it difficult for household appliance consumption to rise sharply with a single measure. The issuance of consumption vouchers in more places has a certain stimulating effect on consumption, but it is only local policies. The relevant consumption promotion policies are expected to continue to expand the coverage, increase the duration and be more detailed, So as to truly realize the effective boost to the national household appliance consumption market. ” Major general Ding, founder of nail technology, believes that.
Tianfeng Securities Co.Ltd(601162) sun Qian believes that more cities are expected to follow up the issuance of consumption vouchers in the future as the national institutions encourage qualified places to stimulate the renewal of household appliances and the sending of green household appliances to the countryside.
