Market Mechanism Forces Deep Adjustment of Home Appliance Industry

? At present, the home appliance industry is still in the digestion period of stimulating policy withdrawal. In the first quarter, the impact of consumer overdraft factors continued to show, and the market needs to go through a process of returning to normal. At the same time, positive factors continue to accumulate. The company’s production and business activities are basically normal and development is expected to be good. The home appliance industry has achieved a smooth start overall.

According to the monitoring results of the economy, the economic index of China's home appliance industry in the first quarter of this year was 96.8. The prosperity of the home appliance industry has been basically the same for three consecutive quarters. We believe that in the face of a large number of uncertainties, the home appliance industry will continue to operate smoothly without major ups and downs. This is a welcome event. This shows that the industry fundamentals are still normal and the overall development is healthy.

According to data held by the association, the production, export, and profits of the home appliance industry are basically normal. From the production point of view, in the first 2 months of this year, the output of washing machines in household appliances dropped by 4%, while other products maintained growth, of which air conditioners increased by 17%; the output of electric fans and electric baking/roasting appliances in small household appliances decreased, and most other products keep increasing. From the perspective of exports, the export value of the home appliance industry in the first two months was 8.3 billion US dollars, an increase of 4.9%. Due to the economic recovery of developed economies, China’s export of home appliances to developed countries such as the United States, Europe and Japan is better than that of emerging economies. From the perspective of efficiency, in the first two months, the home appliance industry achieved a total revenue of 172.1 billion yuan in main operations, total profits and taxes of 11.6 billion yuan, and total profits of 7.9 billion yuan, which were 6.3%, 16.3%, and 21%, respectively. This is optimistic.

It is worth noting that market monitoring data shows that the home appliance industry is not booming in the domestic market, and sales of some product categories have declined. In the first quarter, the sales of home appliances sold by 5,000 key retailers monitored by the Ministry of Commerce increased by 3.4% year-on-year, a slowdown of 9.3% over the same period of the previous year. Ovid Consulting's data shows that in the first quarter, domestic color TV sales decreased by 11% year-on-year, and sales decreased by 13% year-on-year. The reason is that from January to May of last year, the energy saving subsidy policy drove the hot market sales, which led to a year-on-year increase in base prices; in addition, household electrical appliances as durable consumer goods could not be repeatedly purchased in a short period of time. The impact of previous consumer overdrafts is bound to Gradually emerged in the market.

Since last year, with the exit of large-scale stimulus policies, the home appliance industry has entered an adjustment period. Household appliance companies have soberly realized that sales can not be expected to send short-term policies to pull expectations, bid farewell to the policy to rescue the market, return to market mechanism adjustments, and constantly enhance endogenous power, is the fundamental way for the development of the industry.

Although the home appliance market in 2014 will continue to be affected by unfavorable factors such as unbalanced global economic development, overdraft consumption, and stalemate in the residential market, the positive factors that determine the development are even more significant.

At present, the popularity of household appliances in urban and rural households has reached a relatively high level, and the home appliance market has entered a phase of renewed consumption. The development of high-end products has become the focus of various companies. Inverter air conditioners, drum washing machines, smart TVs, boutique kitchen products accounted for an increasing proportion of the market. Products with higher technical content are more attractive to consumers, but also give companies greater profit margins. Benefited from structural adjustments, a number of leading companies delivered relatively bright transcripts. In the first quarter, Gree Electric (29.72, 0.47, 1.61%) net profit attributable to shareholders of listed companies is expected to increase by 50% to 70% year-on-year; Midea's first-quarter net profit is expected to increase by 42% to 61%; TCL Corporation (2.37) , 0.03, 1.28%) Net profit is expected to increase by 130% to 143%. Those enterprises lacking core competitiveness face great challenges. In the future, the survival of the fittest in the home appliance industry will become more apparent.

At the China Household Appliances Expo recently held, the trend of networking and intelligent development of the home appliance industry is obvious. The environmental appliances and small household appliances market is rapidly developing. All kinds of home appliances have made remarkable progress in energy saving and environmental protection, industrial design, manufacturing processes, and user experience. . This shows from a side that household electrical appliance enterprises are full of confidence in the future development, have the courage to change, are determined to innovate, and put the transformation and upgrading into practice.