Analysis on the Forecast of the Result of Small Household Appliance Enterprises in 2012

This year, TVs, refrigerators, air conditioners and other major categories of household appliances not only once again received the country's 26.5 billion yuan in energy subsidies, but also enjoy recycling subsidies. However, whether it is energy-saving subsidies, or recycling subsidies, but always missed with small appliances. Industry companies have repeatedly urged small home appliance industry should also enjoy the same trade-in policy, to solve the two issues of sales and recycling.

The small home appliances special Huimin subsidy has been issued for many years. The China Household Electrical Appliances Association recently announced that it will implement a 40-day special cash subsidy for small household appliances nationwide from August 10. The appearance of the Huimin subsidy, which was hailed as “non-government”, was questioned by many parties: Is the company’s self-paid subsidy a suspect for disguised promotion? What kind of impact does this subsidy have on the small home appliance market?

The subsidy is not a disguised promotion. “This activity was carried out in the form of voluntary participation by enterprises under the call of small household appliance manufacturers.” Liu Yan, member of the China Household Electrical Appliances Association, paid special attention to the report when interviewed by the China Business Daily reporter. The association complies with the needs of small household appliances companies, not the mandatory scheme of the association.

“Small household appliances subsidies are a disguised promotional activity. This activity is just a gimmick.” A customer at Beijing Gome stores does not buy it. "A small home appliance with a unit price of more than 500 yuan can get a subsidy of 50 yuan. For a consumer of more than 1,000 yuan, it can return up to 100 yuan, which is not attractive to consumers."

Regarding the argument that “small household appliances subsidies are disguised promotion”, Liu Ye, director of the membership department of the China Household Electrical Appliances Association, did not agree that “this special subsidy is not in conflict with mall self-promotion activities, that is, the discounted prices are in line with subsidies. Standard small appliances and kitchen appliances can also benefit from Huimin subsidies.” Liu Xin told reporters that this cash subsidy was jointly funded by home appliance companies and channel distributors, and the subsidized goods covered the kitchen and small household appliances in the stores. Category, and subsidy in accordance with the national energy subsidies process.

"This can't be seen as a price reduction behavior." Luo Qingqi, a senior expert of home appliance specialists and Pare Consultancy Co., said in an interview with the China Business Daily that the subsidy is very different and that companies will pay more. The tax rate for retail sales is multiplied by the tax rate for the reduction of sales items. Now the price of the sales items has not changed, and the subsidies have to be returned in the middle. It is not easy for retail companies and factories to do so.

Prevention of excessive policy dependence This small household appliance "private version" Huimin subsidy once again caused concern in the industry. Many people in the industry have stated that current home appliance companies suffer from policy dependence: When there is a policy, sales volume soars, and after the end of the policy, the market will be in a downturn. Then, will the subsidy of small household appliances encourage the subsidies of enterprises?

“I don’t feel that it will encourage dependency.” In Luo Qingqi’s view, the consumption of small household appliances has only just begun, but the supporting role of small household appliances for improving the quality of life is still not very clear. Subsidies for small household appliances will further promote the general family’s In-depth understanding of the role of small appliances. The real purpose of the subsidy is to achieve the effect of subsidy sales when it is not subsidized. This will greatly promote the small-scale household appliances to enter Chinese families on a large scale.

“In fact, the original intention of this event was to expand the scope of subsidy for household appliances, which is a powerful supplement to the new national subsidy policy.” Liu Ye, the China Household Electrical Appliances Association, told this reporter: “It is undeniable that companies of course are willing to introduce the government. Subsidy policy, but I do not recommend that companies rely on policies to live. Enterprises should find their way out."