Home appliance companies are fighting for a "turnaround."

After a long drought, the home appliance industry has become extremely active recently.

Industry experts pointed out that the replacement policy provides strong support for promoting the release of consumer demand and improving the product mix.

With the continued implementation of related policies such as the home appliance replacement policy and the stabilization of the real estate market, consumer purchasing confidence has been boosted. Coupled with the approaching Double 11 Shopping Festival, the home appliance industry is expected to have a wonderful turnaround.

National supplement and replacement + Double 11, the home appliance carnival reaches another climax

In August, four departments including the Ministry of Commerce jointly issued the "Notice on Further Improving the Trade-in of Home Appliances for New ones" to provide subsidies for consumers to purchase eight categories of home appliances that meet energy efficiency or water efficiency standards of Level 2 and above. Local governments responded quickly and increased subsidies, further stimulating consumers' enthusiasm for updating home appliances.

It is particularly worth noting that the new round of national subsidy policies coincides with key consumption periods such as the "Golden September and Silver Ten" and "Double Eleven". The positive effects of the policy have been fully exerted. Major e-commerce platforms and live broadcast anchors And the interaction between home appliance manufacturing companies is extremely active.

JD.com, which started with 3C products, has become an important platform for national subsidy policies. At present, JD.com has launched a special page for home appliance replacement activities covering more than 20 provinces and cities. It is understood that on the basis of the eight categories of home appliances that have clearly defined subsidy standards, many local governments have further expanded the categories of home appliance subsidies based on residents’ consumption habits and consumer market conditions.

Tmall has joined hands with many brands on Double 11 to jointly invest 6 billion yuan and actively respond to the incremental trade-in policy of old for new through various methods such as issuing category coupons and official brand concessions; Pinduoduo’s first national subsidy consumption zone for tens of billions of subsidies has also been launched ; Vipshop’s Double 11 promotional materials also indicate that “home appliances are one of the categories with the most discounts from Vipshop, and the prices have reached record lows.”

According to data from Kuaishou E-commerce, since the Double 11 event on the platform officially kicked off on October 19, the number of users who participated in the trade-in and received state subsidies on the first day has exceeded 1.3 million. Compared with 618 this year, GMV has increased by 670%. . With the support of state subsidies, brands such as TCL, Hisense, and Oppein have achieved the feat of GMV exceeding 100 million. Specifically, TCL's GMV increased by 44 times year-on-year, Hisense's GMV increased by 12 times year-on-year, and Oppein's GMV increased by more than 100 times year-on-year.

The growth rate of home appliances has slowed down, and the replacement policy has become a "timely rain"

The launch of the home appliance replacement policy coincides with a critical slowdown in domestic economic growth and is also a stage when the growth of the home appliance industry is hindered. For home appliance companies, this is undoubtedly a "timely rain".

Industry analysts pointed out that the continued weakness of the market in the second and third quarters caused many home appliance manufacturers to fall into a vicious cycle of price wars, resulting in a situation of "killing one thousand enemies and losing eight hundred to oneself."

National subsidy policies and related measures have undoubtedly temporarily alleviated this downturn. As the CITIC Securities Research Institute report pointed out, starting from 2024, domestic demand for home appliances will gradually be affected by the "negative feedback of the real estate completion cycle." The “old-for-new” policy came at the right time and effectively alleviated the trend of declining demand.

The release of consumption potential has prompted home appliance companies to "start over." The “old for new” policy has significantly released consumption potential.

According to data released on the official Weibo of the Ministry of Commerce, as of October 15, 20.667 million consumers across the country have participated in the trade-in activity, of which 10.134 million consumers purchased eight categories of home appliances, totaling 14.624 million units, and enjoyed 1.317 million 100 million yuan in central subsidies, thus driving sales of 69.09 billion yuan. Currently, among the eight categories of home appliances that are traded in for new ones, the sales of level 1 energy efficiency products account for more than 90%.

In addition, this policy will also help alleviate the problem of oversupply of home appliances. Industry observer "Home Appliance Circle" pointed out that the long-standing problem of oversupply of brands, channels, merchants, etc. in the home appliance market has been unresolved. The implementation of the state subsidy policy has given home appliance manufacturers that have obtained state subsidy qualifications an advantage and set a threshold for other peers to be shuffled out, which will release more market space and opportunities in the first-tier market.

In addition, in recent years, the development of high-end and intelligent products has become one of the transformation directions of home appliance companies. The implementation of relevant subsidies is expected to drive the sales of such products and further stimulate the development of home appliance companies.

This subsidy is also considered to be an opportunity for home appliance companies to adjust their product structure and reshape their channels.

It is worth noting that this new rotation of subsidies is not yet able to fundamentally change the basic development situation of the home appliance industry. On the one hand, the subsidy policy drives short-term growth and brings short-term popularity and dividends; on the other hand, some sellers significantly reduce prices during promotional activities to quickly clear inventory, which does not affect their own profitability. Positive effect.

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