Interpretation of the State Council’s new round of home appliances to promote consumption policies: green smart home appliances are pioneers

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Image source @Visual China

Image source @Visual China

Text | China State Grid

On July 13, Premier Li Keqiang chaired an executive meeting of the State Council, calling for multiple measures to expand consumption and to determine measures to support the consumption of green and smart home appliances. The meeting pointed out that it is necessary to accelerate the release of the consumption potential of green smart home appliances. Carry out home appliance trade-in and home appliances to the countryside across the country, and encourage qualified localities to provide financial and policy support. In the implementation, it is necessary to maintain a unified and open national market and ensure fair competition. Support the development of recycling and utilization of waste household appliances, and improve the support capacity of information network, electricity and other infrastructure for household appliance consumption.

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On the 20th, Vice Minister of Commerce Sheng Qiuping said that in promoting the stabilization of consumption, automobiles, home appliances and catering are important supports for traditional consumption; and in terms of home appliances, the Ministry of Commerce will support the development of home appliance trade-in and home appliances nationwide. Home appliances to the countryside, improve smart home appliance standards, promote the standardization of the entire chain of home appliance installation and maintenance, and support the development of waste home appliance recycling and other work.

On July 22, the State Council Information Office held a regular briefing on the State Council’s policies to promote the consumption of green and smart home appliances. It was mentioned at the meeting that the Ministry of Commerce, together with the Ministry of Industry and Information Technology, the State Administration for Market Regulation and other departments, researched and proposed “On Promoting the Consumption of Green and Smart Home Appliances”. Several Measures” (hereinafter referred to as “Several Measures”) has been approved by the State Council. In the future, the country will start to trade old for new, green smart home appliances to the countryside, strengthen the whole chain service guarantee, consolidate infrastructure support, optimize the supply of green smart home appliances, and implement after-sales service improvement for home appliances. , strengthen the recycling and utilization of waste household appliances, implement fiscal, taxation and financial policies, etc., to support the healthy development of my country’s household appliance market.

People in the household appliance industry believe that a series of national support policies are conducive to boosting consumer confidence in the current market, starting from two aspects of expanding demand and improving supply levels to help household appliance companies tide over difficulties.

Support the economy and expand domestic demand

From 2007 to 2013, my country once issued a large-scale home appliance subsidy policy. At that time, the policy background was that my country’s economy was in a stage of substantial downturn, and the country urgently needed to boost domestic demand to stimulate the economy. Large-scale economic stimulus policies, and the form of financial subsidies related to household appliances are jointly undertaken by the central and local finances, and the central finance bears more than 80%. During the last round of policy implementation, the state adopted direct subsidies for end-consumers such as home appliances going to the countryside and trade-in for new ones, while energy saving and benefiting the people belonged to direct subsidies for promotion enterprises, and consumers were the indirect ultimate beneficiaries; at the same time, At that time, the subsidy mainly included ice, washing, air, TV, computer and other categories as the main subsidy. Through the implementation of this policy, the penetration rate of household appliances in our country, especially in rural households, has increased rapidly, and it has also driven the rapid growth of household appliance companies’ revenue. However, in the process of implementing the policy, a series of problems have also occurred. At the same time, many companies have reported that due to the overdraft of the market by the stimulus policy, the volatility of corporate profits has increased for a period of time. After the end of the subsidy policy, my country’s home appliance industry ushered in a long period of adjustment.

The new round of home appliance consumption promotion policies will be very different from the previous round of subsidy policies. The Guojun home appliance analysis team believes that from 2018 to the present, the State Council and various ministries and commissions have mentioned policies such as promoting rural consumption, launching home appliances to the countryside, and subsidizing home appliances in many policy briefings and government documents. domestic demand to promote economic development. “At present, my country’s home appliance market is already in the stock stage, and the penetration rate of some just-needed products is already very high. Therefore, the original intention of consumption subsidies will not be to ensure the development of a single industry or stimulate GDP growth in the short term, but more in the expectation of a high probability of overseas demand falling. , to achieve steady economic development from the level of boosting domestic demand and ensuring employment, so we can see that this time, in addition to subsidizing traditional ice, washing, air, TV and other major appliances, the briefing also mentioned the need to introduce more products to meet different needs The demand for green smart home appliances will attract more high-quality home appliances into the Chinese market, and continue to meet consumer demand for home appliances with high-quality supply. It is inferred from this that pan-subsidy may become the mainstream and drive quality-upgraded home appliances, small home appliances, clean appliances, etc. The release of non-rigid needs.”

In addition, different from the previous round of subsidy policy in which the central government assumed the main subsidy amount, the advocacy and implementation of this policy may fall more to local governments. All localities should give full play to the roles of government departments, leading enterprises, e-commerce platforms, industry associations, etc., through government support, enterprise promotion, platform fee reductions, etc., to mobilize physical businesses, e-commerce platforms, production enterprises, and recycling enterprises to participate in the development of Home appliances trade-in activities”; and when it comes to green and smart home appliances going to the countryside, it is mentioned that “all localities can make good use of relevant funds such as county-level commercial construction actions”. As a result, the industry predicts that the country is unlikely to implement large-scale subsidies nationwide this time, and the implementation of the consumption stimulus policy will still be based on the actual local market demand and the financial situation of the local government. In fact, some local governments have tried to stimulate household appliance consumption in the form of issuing consumer coupons and the government and enterprises jointly benefiting the people. For example, Beijing is expected to release 300 million yuan of consumer coupons from April to September this year to support green smart home appliance consumption.

Pull together supply and demand, two-pronged approach

Different from the previous round of home appliance subsidy policy, which mainly focused on the demand side, this round of home appliance consumption promotion policy covers more comprehensively, taking home appliance supply and demand as a “game of chess” to pull together.

For example, when it came to optimizing the supply of green smart home appliances at the briefing, it was mentioned that it was necessary to “improve the evaluation standards for green home appliances and expand the scope of certification for green home appliances” and “promote the opening and integration of standards for smart home appliances and accessories such as plugs, chargers, and remote controls. , mutual compatibility and interconnection”, etc. To give the simplest example, as Chinese residents attach importance to the kitchen and bathroom space, in recent years, many emerging home appliances such as integrated stoves, dishwashers, smart toilets, etc. have begun to enter the homes of ordinary people, but these products are the first to enter the home. A major threshold is the renovation of water and electricity pipelines in the kitchen and bathroom space, and the “fighting for sockets” of various electrical appliances is also a long-standing pain point for consumers. If the water circuit can be planned at the beginning of the construction of the house, it will greatly facilitate emerging home appliances. login process. At present, many leading companies in the industry, including kitchen appliances and integrated stoves, have participated in the formulation and revision of national housing construction standards to reflect the demands of people’s livelihood. For another example, as home appliances become intelligent, there are still many problems in the interconnection between brands and categories. How to realize a real smart home from the top-level design needs to be jointly formulated by relevant industry associations to form a cross-industry and cross-category. comprehensive standard.

In addition, under the stock market environment, the “obstacles” for new home appliances to enter the home are largely those old home appliances that have been in service overdue. Eliminating the old and welcoming the new is essentially the same thing. During the implementation of the last round of consumption stimulus policies, my country has gradually formed a method for recycling and disposing of waste electrical and electronic products. In May 2012, the Ministry of Finance and the Ministry of Environmental Protection established a government fund for the disposal of waste electrical and electronic products. The consignee or agent of the product will collect a fixed amount of waste electrical and electronic processing fees, and give fixed subsidies to relevant recycling and dismantling enterprises. However, after years of development, the fund’s operation has appeared to a certain extent “beyond making ends meet”, requiring national financial transfer payments; and the profitability of professional recycling and dismantling enterprises is also poor. At present, there is a large gap between the theoretical scrapped amount and the actual disposal amount of household appliances. How to make up for the various problems in the alternating links between the new and the old, the state has been exploring solutions in recent years. At this briefing, the state clearly promoted home appliance manufacturers to carry out recycling target responsibility system actions, and called on manufacturers to build a home appliance reverse recycling system by relying on the product sales and maintenance service network, or through self-construction, cooperative construction, etc. This measure solves the problem of disconnection between home appliance production and recycling and dismantling to a certain extent, allowing manufacturers to focus on the trajectory of the product’s entire life cycle, and implementing the extension of the responsibility of producers. At present, companies including Haier, Hisense, Midea, Changhong, TCL, Gree, etc. have made arrangements in the waste electrical appliance recycling market, promoting the green and efficient transformation of the entire household appliance industry chain.

The briefing also mentioned things such as promoting the economic development of channel platforms, promoting the improvement and promotion of after-sales service of home appliances, supporting the infrastructure support of smart and green home appliances from the national level, and strengthening the fiscal and tax policies to support the development of home appliance enterprises. very comprehensive.

Jiang Feng, executive director of the China Household Electrical Appliances Association, said that in the previous policy statements of various government departments, home appliances were only mentioned as a part in comprehensive measures, but this time, several ministries and commissions have introduced consumption promotion measures specifically for home appliances , indicating that the country attaches great importance to the home appliance industry. As a personnel, capital, and technology-intensive industry, home appliances are related to the realization of people’s better life on the one hand, and at the same time, their industrial chain is long, and it is a key industry to attract employment and protect people’s livelihood, promote the healthy and healthy development of the home appliance industry, and contribute to the promotion of domestic demand, It is of great significance to stabilize employment and achieve steady economic growth.

At present, the specific terms and conditions of the “Several Measures” are still to be announced.

At the enterprise level, everyone has maintained an optimistic and positive attitude towards the introduction of this policy. In fact, many home appliance companies have already initiated some measures to promote consumption. For example, Galanz said that since the beginning of the year, the company has launched nationwide A series of promotional activities for green home appliances, including “0” discount for purchasing designated models by trade-in, cash back and super-value gifts for purchasing designated models. Midea, Changhong, Fangtai, Skyworth and other companies all expressed their “close attention” to the policy. With the introduction of national support policies, green, high-efficiency, energy-saving and intelligent quality home appliances will usher in multiple benefits in the future, and are expected to be further popularized . The relevant person in charge of Midea pointed out that “as long as specific policies are issued to enterprises, we will act immediately.”

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