This winter, Guangzhou is very cold and many people have purchased air conditioners or electric oil heaters. Data from major e-commerce platforms show that recently household appliances purchases have been significantly active. According to organizational statistics, in fact, since the fourth quarter of last year, household appliances sales have shown signs of improvement.
In addition, Ning Jizhao, deputy director of the National Development and Reform Commission, said on January 8 that measures to promote the consumption of hot products such as automobiles and household appliances would be formulated this year. It has aroused great concern in the market and triggered a rebound in the stock price of the secondary market. Some analysts believe that, from the historical data, policy support will lead to a significant improvement in household appliances consumption, among which refrigerator, washing machine, air conditioner and other big household appliances will benefit most obviously.
This winter, most cities in China, including Guangzhou, were affected by strong cold air. Sales of heating household appliances such as electric oil heaters, air conditioners and so on were booming. Not only northerners in Guangzhou, but also many local families have begun to buy more kinds of heating household appliances online. According to the data of Suning.com, the sales of electric oil heaters online and offline in Guangzhou (including Guangzhou, Shaoguan and Qingyuan) increased by more than 600% only from December 7th to 9th 2018. According to data from JD.com, sales of heating appliances in China increased 3.5 times from December 3rd to 9th 2018, more than 3 times in Fujian and 5 times in Guangdong and Guangxi.
The overall growth rate of household appliances industry declined in 2018, but in the fourth quarter of 2018, the growth rate of household appliances industry has improved to a certain extent due to the online promotional activities such as Double 11 Event and Double 12 Event. The data of the fourth quarter of 2018 show that the growth rates of washing machines and TV are negative 2% and negative 14% respectively, and the negative growth rate is narrowed; the growth rate of air-conditioner is 6%, and the positive growth rate is restored to achieve a simultaneous increase in volume and price. Refrigerators grew at the same rate year on year and kitchen appliances grew by 24%, returning to double-digit positive growth.
At the same time, the continued decline in raw material prices has led to a drop in costs and an increase in the industry's profitability. As of January 4, the prices of copper, threaded steel, aluminum and plastics decreased by 15.40%, 18.01%, 10.55% and 10.98% respectively compared with their respective peak prices in 2018. Overall, the decrease of production cost is expected to improve the profitability of household appliances industry in 2019.
If the subsidy policy for the household appliances industry can be introduced, in the current economic environment, it is easy to achieve steady economic growth by subsidizing such bulk commodity as automobiles and household appliances, which will also have a practical benefit for household appliances enterprises.