Appliance market usher in a new opportunity for development

Recently, the National Development and Reform Commission will formulate plans for the release of urbanization development and related policies, which means that the home appliance market will usher in a new opportunity for development. Data from Zhong Yikang show that China’s 3rd and 4th appliance market has a population of 70% of the country’s population, contributing 40% The retail sales of social consumer goods.

The urbanization plan will be released in the second half of the year on July 31st. The director of the National Development and Reform Commission stated that China's urbanization development plan and related policies will be released in the second half of this year to plan and promote the reform of household registration, land, fiscal finance, social security, etc. Quality. He also said that although the economic growth has slowed down, he still has confidence in achieving the expected target of 7.5% growth for the year.

According to relevant data, a 1 percentage point increase in the urbanization rate will drive 7 trillion yuan in market demand. By 2020, if China’s urbanization rate reaches 62%, the rural market will accumulatively increase sales of home appliances by 4.5 trillion yuan. Yuan, the cumulative sales will exceed 9 trillion yuan. With the acceleration of urbanization, the rural household appliance market has become a contestable place for future businesses.

Rural home appliance market has great potential

At present, one or two levels of urban household appliances market have become saturated, with data showing that in 2012 the scale of urban household appliances market decreased by 7.6% year-on-year, while the rural household appliances market grew by 3.7%. From the perspective of the most commonly used household appliances—washing machines, sales of washing machines in 2012 fell by more than 10% in first- and second-tier cities and 2.9% in fourth-tier cities; TV sales in rural markets exceeded urban markets for the first time, accounting for more than 50%. %.

In recent years, with the increase in residents' income, the spending power of the household appliances market in the 3rd and 4th levels is also rising rapidly. With the expansion of agglomeration areas brought about by urbanization, demand for home appliances will increase, consumption capacity will increase, and demand will increase. This has led to a rapid increase in the rural household appliance market. According to industry sources, the mainstream of China's future consumption must be in the 3rd and 4th markets.

E-commerce seize the rural market

With the acceleration of urbanization, the consumption capacity of the tertiary and tertiary markets is rapidly increasing. The market has great potential. Major e-commerce companies are also occupying the rural market. Currently, the three or four-tier home appliance market mainly uses individual stores and private home appliance chains. The main form of sales, in recent years, Gome, Suning and other home appliance chain giants are determined to enter the 34 markets, but did not really enter.

For the current 34 markets, the biggest problem faced by e-commerce is logistics and distribution. According to industry insiders, most online shopping and distribution channels can only be distributed to county-level cities. To a certain extent, it limits the scope of home network purchases. For e-commerce companies to really enter the rural market, increasing logistics construction is a top priority.