Get rid of home appliance performance decline policy "transfusion" more "blood"

The "downturn" has become a lingering shadow over the top of the home appliance industry.

According to data from the Ministry of Commerce, in the first half of this year, sales of home appliances and audio-visual equipment in China fell by 3.8% year-on-year. In July, sales of household appliances and audio-visual equipment fell by 0.6% year-on-year, a decrease of 1.2 percentage points from June. Although the decline in sales of home appliances has narrowed, it still fell by 0.6% year-on-year.

This point has also been confirmed in the semi-annual report data of home appliance listed companies. Many A-share listed companies suffered losses, sharp declines, or rapid declines in their mid-year performance. For example, Hisense Electric's operating income increased by 2.72% year-on-year in the first half of the year; Xiaoli Household Appliance Enterprise Yilipu expects its net profit to lose for the first time; Aishida expects the net Profits will decline by 30% to 50%; Midea’s revenue in the first half of the year will see a double-digit decline...

“The reason why the home appliance industry is in the doldrums is that due to the impact of the macro economy, household appliances prices are generally higher and consumers are less willing to buy. On the other hand, the home appliance industry is a downstream industry of real estate, and the real estate market is not optimistic. The home appliance industry naturally also Will be depressed.” Zhao Huizhi, a researcher in the household appliance industry of China Investment Advisors, said in an interview with a reporter from the China Sankei Shimbun News.

Since the global financial crisis in 2008, the home appliances industry has experienced rapid growth after surpassing the crisis. However, at the beginning of this year, the policy of stimulating consumption with home appliances to the countryside, trade-in, etc. ended, leaving the home appliance industry in the first half of the year to be decryed. Since then, the release of home appliance energy-saving subsidies in June has rekindled hope in the industry.

However, from the existing data, the effectiveness of home appliances energy-saving subsidies does not seem very optimistic. According to the monitoring data released by AVC Consulting (AVC), the implementation effect of the policy is lower than the market expectation, and the stimulation effect can only be increased by 1-3%. Whether it is to digest inventory or boost product sales, this figure is far from reaching the enterprise. The expected value.

“The main reason for the ineffectiveness of the energy-saving home appliance subsidy policy is mainly due to the lagging nature of the policy. The subsidy policy for energy-efficient home appliances was formally implemented on June 1, but the terminal channels did not formulate supporting measures until mid-June,” said Zhao Huizhi.

What is even more worrying is that the previous rounds of home appliances to the countryside may have overdrawn the current consumer demand to a certain extent. Insiders pointed out that the large-scale consumer subsidies in the past four years have met the demand for national household electrical appliances, but at the same time it is doomed that household electrical appliance consumption growth will be difficult in the next few years.

"This view has some truth." In Zhao Weizhi's view, on the one hand, home appliance subsidies have reduced the price of home appliances and boosted the consumption of home appliances. But in the future, once the subsidy policy is lifted and the price rises, there will be a huge impact on the home appliance industry; On the other hand, policy support for the home appliance industry may lead to structural upgrades in the industry and slow product innovation. After price adjustments, the competition of foreign home appliance companies will be in a weak position.

Obviously, policy support can only play the role of “blood transfusion”, and it is still a temporary solution, and home appliance companies must rely on their own “blood-making” if they really want to get out of the dilemma. Hong Shibin, an industry observer, said in an interview with the media that the home appliance industry is now in pain, but there are also no shortages of rational industry pains. This is a good time for the industry to achieve transformation, and it is also a good opportunity for the industry to reshuffle.

“The transformation of home appliance enterprises first needs to improve the ability of independent innovation and increase the research and development of key technologies for high-end home appliances. Second, we must develop and develop new industries. Finally, we must strengthen brand building and expand the influence of product brands.” said Zhao Huizhi. .

It is worth mentioning that, in the context of lower domestic demand and overcapacity of enterprises, many home appliance companies have turned their sights overseas and handed over satisfactory answers. For example, Hisense Electric's overseas revenue in the first half of the year achieved a year-on-year increase of over 40%. In the first half of the year, TCL Group achieved sales of 6.616 million LCD TVs, of which the overseas market increased by 108.4%, far exceeding the industry average growth rate.

In addition, Zhao Huizhi suggested that home appliance companies overseas gold rushing, on the one hand, need to properly resolve conflicts with foreign management models and cultures; on the other hand, there is a need for good control of the convergence of R&D, production, and logistics supply chains.