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China Home Appliances Going to the Countryside and Post-era Operation Strategy Report

China Home Appliances Going to the Countryside and Post-era Operation Strategy Report

Last Update:2014-04-21

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Preface

Table of Content

In the second half of 2008, affected by financial crisis, the export demand decreases severely. It’s a common consensus to expand domestic demand for all parties, so the policy of “home appliances going to the countryside” is released. On December 1st 2008, 14 provinces, autonomous regions, municipalities or municipalities with independent planning status, such as Shandong, Qingdao, Henan, Sichuan, Inner Mongolia, Liaoning, Dalian, Heilongjiang, Anhui, Qingdao, Hubei, Hunan, Guangxi, and Shanxi began to promote the home appliances going to countryside. The pilot 3 provinces and 1 city – Shandong, Henan, Sichuan, and Qingdao – would implement this policy till the end of November 2011, while other provinces, autonomous regions, municipalities or municipalities with independent planning status would implement this policy till the end of November 2012. From February 1st 2009, other provinces, autonomous regions, municipalities, municipalities with independent planning status and Xinjiang Production and Construction Corps began to conduct the work of home appliances going to the countryside.

The policy of home appliance going the countryside vigorously promotes the rural consumption, and promotes the fast development of home appliance industry. The statistics shows, after the implementation of the policy of home appliances going to the countryside, there were 218 million pieces of home appliance products that were sold as of the end of December 2011. The industry realized the sales volume of 505.9 billion Yuan, and the accumulative subsidiary reached 59.22 billion Yuan.

At present, the home appliances going the countryside policy in Henan, Shandong, Sichuan, and Qingdao had dropped out since the end of November 2011, and other places will gradually quit the policy. Moreover, enterprises deal with the effects causing by the exit policy through emphasizing the products not for home appliances going the countryside. The implementation of home appliances going the countryside leads to the overdraft rural demand to some degree. It’s predicted the rural demand growth may slow down in the next 2 years. However, the rural home appliance market hasn’t yet reached the level of rural market, and it has great space for development.

Since the foreign demand is fatigue, and the domestic urban market gradually become saturated, home appliances enterprises begin to compete for the third and fourth-tiers market in rural areas. Many home appliance enterprises successfully open the third and fourth-tiers marketing markets. Indeed, there are some brands that grow depending on these policies. After entering post-era of home appliances going to the countryside, the rural market competition becomes conventional. Some big brands continue to focus on down channels, and improve the occupancy in the third and fourth-tiers markets, while those brands which grow depending on policies will face re-shuffle again.

In the post-era, the competition in rural areas that home appliance enterprises face will become fiercer and fiercer. In such a circumstance, either large-sized home appliance enterprises, or small and medium-sized enterprises should timely focus on the market dynamics and competitive rivals dynamics, and make full use of their advantages and positively face the challenges aiming at rural market demand characteristics.

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Notice: All the market data, especially corporations' ranking data in the report, only for business reference. Please do not take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Home Appliance Industry


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