Gree and other household appliance listed companies invested heavily in the "old for new" activity

Gree and other household appliance listed companies invested heavily in the "old for new" activity
07:33, April 30, 2024 Securities Daily

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The exchange of old appliances for new ones is in full swing nationwide. Following Shanxi, Beijing, Guangdong and other places have also made new moves in this round of "trade in the old for the new".

As the main force to promote the implementation of the "old for new" policy, listed household appliance companies have invested heavily in "real gold and silver" to help upgrade consumption. Recently, Gree Electric Appliance Midea Group Announced to invest 3 billion yuan and 2 billion yuan respectively to launch the "old for new" activity of household appliances nationwide.

On April 29, the relevant responsible person of Gree Electric told the reporter of Securities Daily that the company would continue to invest with "real gold and silver". Skyworth Group told reporters that at present, the company's "old for new" activity is being carried out in Gansu, Ningxia and other places. Coworth And Xiaoxiong Electrical Appliance Relevant people also revealed to reporters that the implementation of the specific plan of "trade in the old for the new" is being accelerated.

"The specific measures taken by many places and relevant enterprises are to promote the implementation of this round of" old for new "policy from the dimensions of unblocking the household appliance recycling channel system, stimulating consumer demand for new products with new technologies, etc." Xu Dongsheng, vice chairman of the China Household Appliances Association, said in an interview with the Securities Daily.

Recently, many places have introduced policies related to trade in the old for the new to promote the upgrading of the household appliance industry and further stimulate market vitality. These policies have shown commonness in the implementation, that is, with the investment of "real gold and silver", to promote consumption upgrading and recovery system construction.

For example, Beijing has focused on household appliances for "wisdom" and formulated different subsidy standards for different types of household appliances, with a maximum subsidy of 1000 yuan for a single commodity; Guangdong Province launched the campaign of trade in consumer goods. In the first round of the campaign, 370 million yuan of subsidies were given, including 10% for household appliances; Shanxi Province encouraged the exchange of old appliances for new ones, with a subsidy of 200 million yuan.

"The implementation of specific measures and substantial subsidies in many places marks the deepening of a new round of" old for new "policy nationwide. Among them, the standard of subsidies for old for new household appliances has been raised again, which will help stimulate consumers' willingness to purchase, accelerate the elimination and renewal of old household appliances, and further drive the sales and industrial iteration of the household appliances market." Zhang Jianfeng, secretary-general of the China Household Appliance Business Association, told Securities Daily.

It is imperative to accelerate the promotion of home appliances trade in. At present, China is at the peak of household appliances scrapping. According to the data of Nancai Think Tank, 100 million to 120 million waste household appliances are eliminated every year, with an average annual growth rate of 20%. According to the statistics of the Ministry of Commerce, by the end of 2023, the number of color TV sets, refrigerators, washing machines, air conditioners and other household appliances in China has exceeded 3 billion.

   Orient Securities It is expected that this round of subsidies is expected to pry up the household appliance market of up to 270 billion yuan. Guo Meide, president of Ovi Cloud, said that household appliances have entered the renewal cycle and are expected to release a market space of trillion yuan, of which recycling, green intelligent manufacturing and other multi link industries have huge prospects.

"The promotion of the matching policy of trade in for new in many places, together with the 'real gold and silver' investment of household appliance enterprises, indicates that the consumption upgrade of the household appliance market has begun." Zhang Jianfeng said that in the future, with the in-depth promotion of the policy and the active participation of household appliance enterprises, the household appliance market will usher in more prosperous and sustainable development.

The "old for new" has also driven the sales growth of household appliance enterprises. The relevant person in charge of Skyworth Group said that the company started from the northwest region to carry out the "old for new" wallpaper TV popularization activity. Since the launch of the activity, the cumulative sales volume has driven nearly 10 million yuan.

Suning Yigou revealed that the company cooperated with 30 electric power production enterprises to carry out "trade in the old for the new" in many places across the country. Within about one month since the launch of the activity, it has driven the overall sales of household appliances to double.

"'Trade in the old for the new' will not only become a booster for household appliance consumption recovery and industrial upgrading, but also promote the performance growth of household appliance enterprises, and is expected to continue to drive the valuation of the household appliance sector to continue to rise." Xu Dongsheng said.

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Editor in charge: Jiang Yuhan

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