Next, no matter how the "national subsidy" policy for home appliances in various places is adjusted, it is a short-term phenomenon or a long-term trend, it is not good news for home appliance manufacturers to operate continuity and compete in the first-tier market.
Written by He Sheng
Since June, the adjustment of the "national subsidy" policy for home appliances in many places across the country, such as Jiangsu, Chongqing, Beijing, Hubei, etc. has caused operational turmoil and uneasiness among many appliance manufacturers in the front-tier market, and has brought many uneasiness, challenges, and anxiety to home appliance manufacturers that were already in a downturn and fierce battle. After sorting out the home appliance circle, it was found that some regions currently announced the suspension of the "national subsidy" policy, some regions announced the limited time to receive coupons, and some regions only have a few cities to receive the "national subsidy". However, many regions have clearly stated that they are "not clear" about when the "national subsidy" policy will resume after the suspension.
At present, it is a key node of the 618 home appliance promotion. Mainstream e-commerce platforms such as JD.com and Tmall, as well as major companies such as Haier, Midea, Hisense, Changhong, Gree, TCL, and Xiaomi are all in a cycle of "market desperately grabbing orders". The sudden adjustment and suspension of the "national subsidy" policy in many places has caused many manufacturers to experience embarrassment and pressure on the market operations, especially the original promotional activities.
"It takes a lot of time to communicate with users, confirm the purchase address, and judge whether they can enjoy the national subsidy policy." Many online store customer service of JD and Tmall platforms told the home appliance circle, and many consumers even publicly stated that they would not buy it without the "national subsidy" policy, and wait and see. Some consumers directly stated that if the state does not make up for it, can enterprises directly make up for the price reduction discount? It still has a certain impact on market shipments.
At present, local governments have not given a clear answer to the recovery time of the next round of home appliance "national subsidy" policy. But the home appliance circle has heard rumors from multiple versions from the first-tier market. Some e-commerce platforms revealed that it is estimated that the national "national subsidy" will resume until August; and some home appliance companies revealed that they should be able to return to normal by July 1st at the latest. Some home appliance companies said that the policy may be stopped. However, the home appliance circle believes that the "national subsidy" of home appliances, as the annual national stimulus policy for consumption that has been clearly defined this year, may have a phased suspension due to the fund allocation cycle, but it will not be suddenly stopped or ended early.
From the beginning of this year, in the face of the competitive landscape and consumption trends in the first-tier market, many small and medium-sized manufacturers in the home appliance industry have been calling for the hope that the "national subsidy" policy of home appliances can be cancelled as soon as possible. The reason is that the leading enterprises and merchants in the home appliance industry have used the "national subsidy" policy to increase the market reshuffle, and have led to the deformity of "bread selling cheaper than flour" in the first-tier markets. More than 300 1.5P air conditioners, 32-inch smart TVs, and more than 150-yuan range hoods and gas stoves are significantly lower than the material cost price, but they are emerging in the market one after another.
Many small and medium-sized home appliance manufacturers bluntly stated that the implementation of the "national subsidy" policy for home appliances this year not only activates a large number of consumer demand in advance, but also aggravates the reshuffle and squeeze of small and medium-sized manufacturers by large manufacturers, leading to the continuous acceleration of the "Matthew effect" of the home appliance industry. As a result, the suspension of the "national subsidy" policy for home appliances since June has caused many small and medium-sized home appliance manufacturers to "applaud" privately and hope that the policy will be stopped.
However, the home appliance circle has noticed that since this week, with the suspension of the "national subsidy" policy for home appliances in many places, in order to achieve the shipment target of the 618 home appliance promotion, some leading home appliance companies have taken new response actions, that is, after the "national subsidy suspension", companies directly cut prices and concessions to consumers. This undoubtedly added new pressure and unknowns to the shipment of many small and medium-sized manufacturers, and the price fell again.
However, the current challenges or difficulties for all home appliance manufacturers to operate in the first-tier market are not the overdrawal of consumption by the "national subsidy" policy of home appliances, which helps large manufacturers to knock out small manufacturers, but the overall demand of mainstream consumer groups is not strong. Whether it is home appliance retail business giants such as JD.com and Tmall, or leading home appliance companies such as Midea, Gree, Haier, and Xiaomi, or many small and medium-sized enterprises that have been struggling on the brink of life and death, they must return to the origin of industrial competition and find ways to continue to deepen the existing market and drive the incremental market.
In addition to continuing to fight low prices to grab the market, home appliance manufacturers also need to find more ways and means to stimulate consumption, lead consumption, and push up average consumption prices and quality consumption.
Statement: Original articles in the home appliance circle, reproduction is strictly prohibited without authorization
