The new policy of "exchanging old for new" has been implemented, once again catalyzing the home appliance market and stimulating imagination. Recently, the Ministry of Commerce and 14 other departments jointly released the "Action Plan for Promoting the Trade in of Consumer Goods" (hereinafter referred to as the "Action Plan"), organizing the nationwide trade in of automobiles, household appliances, and home furnishings, kitchens, and bathrooms. Dongfang Securities predicts that this round of subsidies is expected to leverage the home appliance market, which is as high as 270 billion yuan.
Under this policy, multiple listed companies in the home appliance industry have deepened their layout and sought new growth points in the wave of home appliance updates and replacements. Several enterprises, including Gree Electric Appliances, Haier Zhijia, Sichuan Changhong, Skyworth Group, and Suning.com, have made substantial actions and are continuously deepening their layout in terms of subsidy intensity, sound recycling system, and traceability management.
"Establishing a sound system for recycling waste household appliances and promoting the exchange of old appliances for new ones will promote the cycle of household appliance renewal and consumption, opening up new growth opportunities for the household appliance industry." Xu Dongsheng, Vice Chairman of the China Household Electrical Appliances Association, said in an interview with Securities Daily.
In 2009, China implemented a round of subsidy policies such as exchanging old appliances for new ones and promoting energy conservation and benefiting the people, directly driving home appliance consumption to trillions of yuan. "Unlike the previous round, the new round of the policy of exchanging old for new household appliances focuses on breaking through the blockages in the entire chain of exchanging old for new household appliances, fundamentally driving the consumption cycle and promoting industrial structure upgrading." Zhang Jianfeng, Secretary General of the China Household Appliance Business Association, told Securities Daily reporters.
Multiple companies have started taking action
The implementation of a new round of trade in policies will further stimulate market vitality and accelerate the updating and replacement of household appliances. In this context, listed companies in the home appliance industry have increased their research and development investment, launched more new products that meet market demand, and adjusted their marketing strategies. They have collaborated with e-commerce platforms, analyzed consumer needs using big data, and launched targeted products and promotional activities.
For example, Changhong air conditioners and Meiling household appliances under Sichuan Changhong have recently launched a "trade in" dual cash subsidy policy, and have set up subsidy areas for old household appliances and factory subsidy windows.
The relevant person in charge of Skyworth Group told Securities Daily reporters, "Currently, the Northwest region of the group's subsidiary color TV companies has launched a storm of wallpaper TV renewal and popularization. We continue to pay close attention to the introduction of relevant regulations and will introduce relevant products that meet both national policy requirements and different consumer needs to the market."
Yao Kai, President of Logistics Operations at Suning.com, told Securities Daily that Suning.com has partnered with over 30 home appliance companies to promote the "old for new" campaign, increased subsidies and incentives, and supported the integration of delivering new and dragging old products.
In addition, some listed companies are also involved in the construction of the home appliance recycling system, providing one-stop services including old home appliance recycling and new home appliance installation.
Gree Electric Appliances told Securities Daily that the company is conducting substantial trade in activities in multiple locations and focusing on the recycling industry chain.
Sichuan Changhong stated that all recycled old household appliances will be dismantled and processed by Changhong Gerun, and secondary sales are strictly prohibited. Zhu Xuewen, Deputy General Manager of Changhong Meiling China, stated that in response to this