Home Appliance Industry Booms, Shifts to Innovation-Driven Growth
The home appliance industry should comprehensively analyze the situation, maintain a clear mind, strive to seize opportunities, accelerate the transformation of development mode, vigorously strengthen technological innovation, promote industrial upgrading, and change its low- to mid-end position in the global home appliance value chain. The policy effect is very obvious.
The China Economic Information Service's (CEIS) Home Appliance Industry Prosperity Index Report states that in the first quarter of 2010, the CEIS Home Appliance Industry Prosperity Index was 99.6 points, an increase of 1.8 points from the previous quarter, exceeding the average level in 2008.
"The performance of the home appliance industry in the first quarter of this year was very good, with a booming market, strong production and sales, increased corporate profits, and high confidence among manufacturers and suppliers. It can be said that we achieved a 'auspicious start'," said Jiang Feng, Chairman of the China Household Electrical Appliances Association, in an interview with reporters. She added that the CEIS Home Appliance Industry Prosperity Index accurately reflects the continuous improvement of the development trend of the home appliance industry.
Since the beginning of this year, the home appliance market has shown strong domestic and foreign sales. Not only has domestic demand been robust, but exports have also achieved restorative growth, driving continuous improvement in production and operation conditions in the industry. Compared with the previous quarter, the year-on-year growth rates of major economic indicators such as production, sales revenue, total profit, exports, and ex-factory prices in the home appliance industry in the first quarter have further improved.
Some leading home appliance companies also reported impressive performance in the first quarter. Hefei Sanyo (600983.SH) expects its net profit for the first quarter to increase by more than 50% year-on-year. TCL Group sold 1.9272 million LCD TVs globally from January to March 2010, an increase of 60.77% year-on-year.
"The good development momentum of the home appliance industry is mainly benefited from the policies supporting the development of the home appliance industry issued by the government," said Jiang Feng. She added that the rural market in China has huge potential and excellent growth prospects. The "Home Appliances Going to the Countryside" policy has promoted the rapid development of the rural market, aroused the purchasing enthusiasm of rural consumers, accelerated the popularization of home appliances, and provided significant development opportunities for home appliance enterprises. The penetration rate of home appliances in the urban market is very high, and the "Trade-in of Old for New Home Appliances" policy has effectively stimulated consumption for upgrading and replacement, promoting product structure adjustment in the home appliance industry.
