Home Appliance Industry Stimulus Policy Withdraws: Difficult winter in the market is still continuing

The "winter" that began in the second half of last year in the home appliance market continued. According to Ovid Consulting's monitoring data, in January this year, the domestic appliance market sales were dismal, and television, air conditioners, refrigerators and washing machines all saw a significant decline in sales. The appliance industry did not achieve the same level of success as in previous years.

Ovid Consulting's monitoring data showed that in January, TV terminal sales were 4.221 million units, down 22.4% year-on-year. In the second half of last year, TV sales reached 22.49 million units, which represented an increase of 16.1% over the first half of the year. The refrigerator sold a total of 667,300 units this month, a decrease of 20.8% year-on-year. In January, washing machines achieved sales of 99.46 million units, a decrease of 37.9% year-on-year. The situation of air-conditioning products was even more severe. A total of 333,400 units were sold during the month, a decrease of 45.7% year-on-year.

Ovid Consulting analysts believe that last year's substantial growth in the home appliance industry was achieved under policy stimulus. In 2012, with the withdrawal of stimulus policies, such data should be good. "Home appliance manufacturers are not satisfied with the market since 2012, reflecting a certain degree of pessimism."

According to its disclosure, the inventory of home appliance companies is still large. As of January 2012, the inventory was still around 10 million units, which is still at a historical high. “The industry is very worried about overcapacity in the home appliance industry. In addition, manufacturing costs continue to increase, and the cost of labor in home appliances manufacturers concentrated in the Pearl River Delta, Yangtze River Delta, and the coastal areas has increased dramatically, which has also exerted tremendous pressure on manufacturers.”

In addition, in the demand for home appliances, the new demand in the primary and secondary markets is mainly concentrated on real estate. So far, the government’s high-pressure policy on real estate has not shown signs of loosening. The export situation in 2012 was more severe. Poor exports have exacerbated the pressure on the domestic market.

Store visits

Home appliance stores are cold

The reporter visited several home appliance stores yesterday afternoon, especially with air conditioners, televisions, refrigerators, and washing machines. A Toshiba TV shopping guide said, “After the December 31st “Trade-for-News” campaign ended, the store’s people suddenly fell out, especially in January.” There has been no major difference between the recent sales in January and January.

A shopping guide for Haier Washing Machine said: "In January, it was not selling well. February is better than January, because February is the last month of the first-level energy subsidy. Customers who are waiting to see also have to wait. To buy it, January is a transition."

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