The Impact of the Financial Crisis on the Home Appliance Industry (Essay)

In the past year, the domestic economy has been developing rapidly, even generating some degree of overheating. But with the spread of the financial crisis, the domestic and foreign economic regression has become a foregone conclusion, the shrinking of foreign markets has had an impact on the domestic economy.

According to industry sources, the economic contraction, especially the real estate industry downturn has begun to color TV, white goods, and kitchen appliances sales momentum. The first release of 2008 China's home appliance industry boom monitoring report that, in the severe international and domestic economic situation, China's home appliance industry has also shifted from high-speed growth to low-speed growth, the next 2 to 3 years, China's home appliance industry will suffer a huge impact.

In the second half of 2008, China's market demand continues to show a slowdown trend, mainly in the following areas:

? The slowdown in consumer demand has led to a decline in the demand stimulus generated by technological upgrades.

? The impact of inflation and the depressed real estate market will continue for some time, leading to a slowdown in consumer demand.

? The current economic situation has dampened consumer confidence and deterred them from spending.

? The economic downturn in developed countries has worsened the export environment.

Nevertheless, in the medium to long term, China's home appliance market still has a very large space for development and potential. But limited to the global economy into recession, resulting in the consumer market for home appliances show a shrinking trend, the current priority task is to deal with the financial crisis on the home appliance industry brought about by the impact of the specific can be started from the following aspects:

A policy to support, to stimulate demand

In the next few years, the government will adhere to the implementation of the policy of expanding domestic demand, increase the income of the population, increase the number of jobs, guide and encourage consumption. employment opportunities, and guide and encourage consumption. In particular, the country is now trying to increase investment in infrastructure, promote housing reform, strengthen consumer credit, the implementation of these measures to stimulate the demand for household appliances, but also will make the demand for home appliances to maintain a certain growth rate.

Two, quality of life driven consumption

The overall tendency of residents to improve the quality of life from improving the standard of living slowly to improve the quality of life, people will pay more attention to the brand of home appliances consumption, environmental protection, energy saving, durable products will become a hot spot for consumption, intelligent, convenient, personalized, green home appliances will be more favored by consumers.

Three, "home appliances to the countryside", boosting domestic demand

The just-convened Third Plenary Session of the 17th Central Committee to promote rural reform and development of the decision to further promote farmers' living and consumption levels continue to improve. From the next few years, the rural residents of home appliances consumption intentions, with the development of the town home appliance market tends to saturation, the rural home appliance market has a large demand for space, the future of home appliance consumption in the rural market will likely be faster than the speed of consumption of home appliances in the town, so the potential for rural demand for home appliances is very considerable.

Recently, the Ministry of Finance and the Ministry of Commerce jointly issued a notice to further expand the pilot scope of "home appliances to the countryside". After the expansion, the pilot scope increased to Inner Mongolia, Heilongjiang and other **** 14 provinces and municipalities. This will also be the scope of home appliances to the countryside in the color TV, refrigerators, cell phones on the basis of an increase in washing machines. In terms of financial subsidies, the new program follows the previous pilot financial subsidy policy, the State Treasury compared to the export tax rebate rate, color TV, refrigerators, washing machines and cell phones are 13% of the sales price of the product to give subsidies. Through the "home appliances to the countryside", boosting domestic demand, home appliance companies can successfully survive the harsh winter provides a new opportunity.

Four, the home appliance industry to implement the "group winter"

Near the end of each year, most of the home appliance manufacturers have begun the year-end inventory to prepare for the New Year. But this year, in the face of the impact of the economic crisis, as the world's largest home appliance manufacturer, China's home appliance industry is a unique way to "embrace the winter". Manufacturers have joined forces with major home appliance terminal chains to launch a new round of promotional campaign, as far as possible to ease the pressure on manufacturers' inventories, *** with the passage of this winter.

Fifth, the implementation of the "differentiation strategy"

China's home appliance industry is in a quantitative to qualitative changes, that is, from the focus of sales from the number of products to the core technology and brand enhancement of the transformation of products. In such a transition, will be accompanied by fierce competition in the industry, but also means that the brand value is more important. Price competition is no longer the only means of enterprises can rely on, "differentiation" strategy will win the first opportunity for enterprises.

Sixth, adjust the foreign strategy

China as one of the world's largest exporters of white goods, its main consumer markets abroad in Europe and the United States, Japan, after the financial tsunami, according to traditional thinking, these markets will be affected by exports.

The country's export trade policy has begun to make adjustments, starting in November this year, will increase the export tax rebate rate, which means that all the home appliances exported to all over the world will enjoy the tax rebate, tax rebate leverage adjustments for the Chinese enterprises to all parts of the world is a powerful stimulus to exports. Europe and the United States market price competition and the development of China's market competition is different, Chinese enterprises can take advantage of the export tax rebate policy to other developing countries to increase exports, so that even if the profit is not high, but also to ensure that there will not be a backlog of inventory or a serious loss of the situation.

At present, the financial tsunami has effectively affected the real economy, for consumer durables, home appliances, the demand for such products will be reduced, home appliance industry winter has come. But experience tells us that the arrival of the crisis also means that the opportunity to reshuffle, can survive the crisis of the enterprise will get unprecedented opportunities. The economic crisis is only the external environment, home appliance enterprises to get out of the predicament ultimately rely on internal factors, and constantly improve their own R & D capabilities, to adapt to market changes, to improve their own mobility, in the crisis of the initiative rather than passive waiting, it will be able to get through the hard times, in the next spring before the seeds of life planted

.