Friday, November 28, 2008

"Color to the countryside," 40,000,000,000 5-year demand for large local companies engage in fierce battle of the new rural

Since Dec. 1, the "home appliances to the countryside," the second phase expansion will be extended to 14 provinces (municipalities), and will continue to 4 years. As for the global financial crisis "winter" of the domestic home appliance business, this means that the collective experience of the plight of the home appliances business in the rural market can finally Baotuan heating.

Konka Multimedia Marketing, Vice President, Tao told The Guardian newspaper reporters, household electrical appliances in rural areas to implement the 4-year period, the state granted will subsidize 13 percent of the approximately 392 million Chinese rural residents benefit of the entire project is expected to generate an annual 40,000,000,000 Yuan plate. This can be predicted that the rural market for household electrical appliance business is bound to compete for the very intense.

40,000,000,000 domestic demand

Nov. 19, from the Ministry of Finance, the Ministry of Commerce launched the "home appliances to the countryside," the second phase of the tender results, 155 companies participate in the tender appliances refrigerators, washing machines, mobile phones and color TV, refrigerator five major industries, resulting in 122 companies last successful, Including Siemens, Matsushita, Motorola, and other multinational companies, as well as from Zhejiang, Guangdong and other places of a number of small and medium-sized private enterprises. The biggest winner is still as Konka, Haier, Hisense, TCL, the United States, and other domestic appliances giant.

Deputy Minister of Finance Wang Jun had been introduced in the expansion of domestic demand, he said, "household appliances to the countryside" is pulling the production, also driving consumption.

According to the China Home Appliances Association, the preliminary statistics for the first time in the "home appliances to the countryside," the 10-month trial period, 167 million rural residents radiation, total sales reached 40 billion yuan. The household electrical appliance and rural areas in three pilot provinces to 14 provinces and cities expand, the population coverage to reach 392 million people, accounting for 53.19 percent of rural residents. It is estimated that the household electrical appliances in rural areas to promote the 4-year period, household appliances and equipment services market demand is expected to exceed 40,000,000,000 yuan each year.

The large number of local manufacturers of household electrical appliances to the countryside in droves. For example, washing machine tenders, more than 400 models took part in the competition. The color TV project, brought together 12 well-known domestic enterprises and more than 100 types of products.

At the same time, household electrical appliances are also invited to the countryside so that local manufacturers a huge income. Tao Wei told reporters that Konka is expected next year, the four market sales growth of 3 percent. The relevant departments of the various types of product price requirement is that the color TV, refrigerators (including freezers), cell phones, washing machines, category 4, the price-cap products were 2,000 yuan, 2,500 yuan and 1,000 yuan, 2,000 yuan. Compared to the first tender, the price-cap range of color TV have increased. In addition, the "LCD TV" has become a bidding model, which means that more products can be short-listed.

"As government subsidies equivalent to 13% across the board price cut of 13%, which would expand the size of the rural market more than 20%. Feedback from the market is that small-sized LCD TVs have been popular in the rural market to start." Skyworth a Internal told reporters.

Battle upgrade

In November of this year, the United States, Suning Appliance, and other supermarkets, domestic color TV manufacturers group staged a "diving prices," the major brands have cut prices, and some domestic brands and even the price cut more than 30%. Price war so that the fierce competition for major household electrical appliance manufacturers to find a new blue ocean.

Government "to the rural areas, home appliances," pulling up domestic demand will soon be a household electrical appliance industry in the warm feedback from local manufacturers around the rural market for the escalation. "Today, faced with the plight of home appliances exports, stocks under pressure, many companies would like to take home appliances' home appliances to the countryside 'fair share of that amount." Huodu chairman of the China Home Appliances Association, said Fang

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