Two Sessions Focus On Boosting Consumption: How Can The Household Appliance Industry Get Out Of The Cold Winter Of Consumption As Soon As Possible?

The 2021 government work report pointed out that "we should steadily increase the consumption of automobiles and household appliances", and focus on "naming" the consumption of household appliances, which brings hope for the household appliance industry to accelerate the recovery in the post epidemic era.

In 2020, affected by macroeconomic growth and slowing down of consumer spending, the home appliance market will encounter a "cold winter", and the overall scale of the home appliance market will drop by 9.8%.

How to get out of the cold winter of consumption as soon as possible after the epidemic? What kind of stimulating policies should be introduced to boost consumption, and what challenges still exist for residents to activate consumption in the field of household appliances?

Focusing on the above issues, the 21st century economic report interviewed several NPC deputies, CPPCC members and industry experts to discuss in depth how the boost of household appliances consumption can effectively break the situation as soon as possible.

A new round of "home appliances go to the countryside" to stimulate the consumption policy of home appliances ahead of schedule

In fact, there are policies to boost the consumption of household appliances.

On January 5, 2021, 12 departments, including the Ministry of Commerce, the national development and Reform Commission, the Ministry of industry and information technology, the Ministry of public security, the Ministry of finance, and the Ministry of ecological environment, issued the notice on several measures to boost the key consumption of large consumption and promote the release of rural consumption potential, encouraging regions with conditions to give subsidies to eliminate old household appliances and furniture and purchase green intelligent appliances and environmental protection furniture, which means that "Home appliances to the countryside" has been quietly launched to stimulate consumption.

Hua'an securities research paper pointed out that "from 2009 to 2011, China promoted the policy of" home appliances going to the countryside "and implemented direct subsidy of financial funds, which greatly promoted the popularity of household appliances in rural areas. In 2019, the number of household appliances with range hood and air washing machines per 100 Households was 29, 71, 99 and 92 respectively. On the one hand, the current round of home appliances going to the countryside is expected to further enhance the rural penetration rate of range hood machines and integrated stoves with stronger smoke absorption effect; on the other hand, according to the last round of "home appliances going to the countryside" for about 10 years, this policy is close to the replacement cycle of household appliances. The natural renewal demand plus subsidy policy stimulation will accelerate the release of rural renewal demand. "

Under the background of the continuous rise of raw material cost, the performance of Martian (300894. SZ), Zhejiang Meida (002677. SZ) and Yitian intelligent (300911. SZ), which have strong penetration promotion and rapid scale expansion, are expected to perform well.

On March 9, Shen Haiping, a Yitian intelligent card agent focusing on integrated cookers, told 21st century economic reporter that "at present, Shengzhou municipal government is vigorously promoting integrated kitchen products, such as Hangzhou east railway station, Shanghai station, Nanjing station, etc., which have Shengzhou integrated stove products on display."

In the institutional survey record on March 5, Yitian intelligent said, "in terms of brand promotion, the standard new image store was upgraded last year, and will continue to invest this year; in terms of channel upgrading, the company has a new layout in engineering, home decoration, e-commerce, and new retail. In addition, the company has also made some strategic adjustments in terms of investment promotion. Yitian is planning to promote the recruitment of big businesses, hoping to open up the high-end market of the first and second tier cities and integrate regional distributors through cooperation with big businesses. "

Martian company has released two integrated stoves, one sink dishwasher, one integrated sink, and four gas water heaters. It is actively expanding the breadth, width and depth of its product line to meet the market opportunities brought by the new round of home appliances going to the countryside.

"Trade in the old for the new", an important grasp of structural upgrading

In this process, home appliances trade in is also a hot topic among household appliance enterprises.

According to public data, more than 10 years after the launch of the last round of home appliances going to the countryside and replacing old ones with new ones, China's electricity reserves have exceeded 2.1 billion. It is estimated that 180 million household appliances will reach the safe service life in 2020. On the one hand, a large number of traditional household appliances have stepped into the juncture of scrapping or overdue service, which brings hidden dangers of safety and health. On the other hand, the home appliance industry urgently needs to develop new momentum.

In addition, Hua'an securities research paper also pointed out that in view of the notice on several measures to boost large-scale consumption and promote the release of rural consumption potential on January 5, 2021, "this time, the rural areas are encouraged to give subsidies to eliminate old household appliances and purchase green smart appliances, and pay more attention to structural adjustment and upgrading, so as to promote rural users to choose appliances with higher energy efficiency Products ".

In this regard, Zhang Jindong, deputy to the National People's Congress and chairman of Suning holding group, proposed to "strengthen the popularization of safe service life of household appliances, actively guide the replacement of old ones with new ones; guarantee the infrastructure of home appliances recycling, establish high standard closed-loop upstream and downstream; increase subsidies to promote the online and offline integration of old and new recycling mode."

The 21st century economic reporter learned that Li Jinbo, deputy to the National People's Congress and director of Midea Group's (000333. SZ) household air conditioning innovation center, suggested that "we should speed up the construction of core recycling system for large household products, improve the infrastructure covering the recycling of household appliances, furniture and other large household waste products, improve and improve the recycling system of large household waste products, and further promote the development of environmental protection Exhibition. "

He said that Midea air conditioning adopts green design and will use the industrial Internet platform m.iot to digitize and build a data system for the recycling of household appliances.

High end and energy saving consumption upgrade in action

21st century economic reporter learned that in order to boost sales in the first quarter of 2021, Suning e-buy (002024. SZ) combined with Haier, HP, boss, Midea, Skyworth, Hisense, Siemens, Supor and many other brands to upgrade the super brand day to a new super brand month.

Super brand month launched "super CP" activity, which is composed of household appliances and home furnishings once a day. Haier + OP, Skyworth + Siji Muge, Siemens + Wrigley, Midea + Jiumu One stop solution to the demand of home appliances and home decoration.

In addition, boss electric (002508. SZ) and SUPOR (002032. SZ) are actively preparing to participate in the 2021 China home appliances and consumer electronics Expo (awe2021), presenting the latest home appliances products to consumers and dealers.

"In the future, the trend of home appliance industry is high-end and energy-saving". On March 9, a person who paid close attention to the home appliance industry told the 21st century economic report that in 2021, the consumption upgrade bonus is expected to be further released. The demand of consumers for high-quality, new technology and new trend household appliances, as well as the home packaged and scenario based solutions, will become two major new trends in the growth of household appliances power.

"Generally speaking, in order to seek growth, the home appliance industry needs to rely on some new ways, such as combining the Internet and IOT, complying with the trend of intelligent and energy-saving, and moving towards the high-end product positioning, or in the early stage of housing decoration, layout the whole house smart home to provide a package of solutions for consumers." On March 10, Liang Zhenpeng, an analyst in the household appliance industry, told the 21st century economic reporter.

Pan Yejiang, chairman of vantage (002035. SZ), said publicly that diversified product layout and technological innovation will become the core competitiveness of kitchen electric enterprises in the new era. Vantage brand marketing focus will be adjusted from "high-end intelligent brand" to "full range of fashionable kitchen appliances" to comply with the development trend of high-end and intelligent kitchen appliances.

Coincidentally, in order to meet the needs of intelligent upgrading of home appliances, in terms of organizational structure, Midea Group redefined five business sectors in 2021: smart home business group, electromechanical business group, HVAC and building business division, robot and automation business division, and digital innovation business to replace the previous consumer appliances, HVAC, Robotics and automation systems, and innovation Four major business sectors.

It is worth noting that among the five business sectors released by Midea Group, the former "consumer electronics" plate was replaced by "smart home business group". The positioning of "smart home business group" is more accurate. Through the operation of users and big data, based on smart home appliances, smart home and ecological industry, it provides intelligent and scene based whole house smart home for C-end users.

In addition, Midea Group this year upgraded the company's three major strategic axes into four strategic paths: leading technology, direct user access, digital intelligence driven, and global breakthrough, in order to meet the higher requirements for products and services in the era of digital Internet.

Xinda securities home appliance team pointed out that "the government work report on expanding domestic demand for household appliances, expanding investment in equipment upgrading and technological transformation of manufacturing industry, and enhancing the independent and controllable ability of the supply chain of the industrial chain are closely related to domestic home appliance enterprises. In general, the domestic demand of domestic appliance market will recover obviously in 2021. Whether the follow-up countries have more policy support or subsidies will further affect the sales situation of home appliance enterprises in 2021. "

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