The sequela of the hottest household appliance pol

2022-07-24
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The sequelae of the household appliance policy continues. Small and medium-sized refrigerator enterprises are facing the tide of collective bankruptcy.

"household appliances to the countryside" and other policies to stimulate consumption continue. In the absence of policy subsidies for products and insufficient market competitiveness, a large number of small and medium-sized refrigerator manufacturing enterprises arising from the policy may collectively usher in the tide of bankruptcy. The sequelae of stimulating consumption policies such as home appliances to the countryside is still continuing. Recently, Ningbo P & G Electric Appliance Co., Ltd., Ningbo Danhe Electric Appliance Co., Ltd. and Ningbo Portland Electric Appliance Co., Ltd. simultaneously announced bankruptcy and reorganization, which triggered heated discussions in the industry. In addition, in the first half of the year, the sales volume of the refrigerator market continued to decline year-on-year. Experts in the industry generally believe that the refrigerator market has been shrinking due to the previous policy of overdrawing the market in advance. In the absence of policy subsidies for products and insufficient market competitiveness, a large number of small and medium-sized refrigerator manufacturing enterprises arising from the policy may collectively usher in the tide of bankruptcy

refrigerator enterprises suffer from market shrinkage

recently, Cixi people's court disclosed that it has ruled and accepted the bankruptcy and reorganization case of Ningbo P & G Electric Appliance Co., Ltd., which is also the first case of bankruptcy of a medium-sized household appliance enterprise in China in recent years

it is understood that Ningbo P & G Electric Appliance Co., Ltd. has been engaged in the production of washing machine accessories since 1991. The building has 32 floors above ground and nearly 100 meters high underground. It began to produce complete washing machines and refrigerators around 2000. By 2008, the annual revenue will reach 700million yuan, which is much higher than that of most small and medium-sized household appliance enterprises

as for the cause of P & G's bankruptcy, some insiders said it was a capital chain problem, which was difficult for the enterprise to sustain. In fact, problems such as tight capital chain and debt crisis are also common problems faced by small and medium-sized household appliance enterprises. Hongshibin, executive chairman of the Marketing Committee of China household appliance business association, believes that the collapse of such household appliance enterprises is closely related to the market shrinkage caused by the withdrawal of the consumption stimulating policy. After the withdrawal of the policy, the market demand is reduced and the production space of enterprises is insufficient. In this case, enterprises often want to seek transformation. The estimated total return on investment of the project is 35.1%. If there is a slight difference in the transformation process, it is easy to cause a comprehensive collapse

according to the latest data of zhongyikang, the retail volume of refrigerators fell by 12.38% year-on-year in January this year, ranking the bottom in the whole white electricity market, and the market shrank severely. In fact, since the end of the policy of sending household appliances to the countryside, the development of the domestic refrigerator market has stepped into a downward channel, which has continued since 2013

in the case of poor overall market, not only Ningbo P & G Electric Appliance Co., Ltd., which benefited from the policy, was frustrated, but even old brands such as Xinfei were also struggling. Since 2013, Xinfei Electric has repeatedly been exposed to work stoppages, strikes and other incidents, which is due to the decline in market demand

the withdrawal of the policy of sending home appliances to the countryside has the greatest impact on the home appliance brands selling in the rural market. Liangzhenpeng, a home appliance analyst, pointed out that Xinfei, in particular, was originally a rural brand, and the main consumer groups came from the countryside. After the policy of home appliances going to the countryside was withdrawn, sales encountered difficulties, and it was more than enough to try to develop the first and second tier markets. The speed of new products of Xinfei refrigerator coming into the market so that the experimental machine can complete the pressure test requiring constant pressure, the long product upgrading cycle, and the insufficient R & D investment lead to the lack of competitiveness in the first and second tier markets, which determines that Xinfei is difficult to make a difference in the middle and high-end markets

policy withdrawal highlights the lack of competitiveness

compared with the shrinkage of the overall refrigerator market, the lack of product competitiveness is the root cause of enterprise bankruptcy, which can significantly reduce the cost of required storage containers. During the implementation of the policy of sending home appliances to the countryside, a large number of small and medium-sized home appliance enterprises rose, relying not on product quality and technology, but on highly competitive prices under policy subsidies

however, with the withdrawal of stimulating consumption policies such as home appliances to the countryside, small and medium-sized enterprises have lost their price advantage and their only market competitiveness. This is also the same time that a large number of small and medium-sized refrigerator manufacturers have seen a decline in sales and revenue, while the mainstream refrigerator enterprises have a strong momentum, such as Omar electric appliance and Meiling electric appliance, whose net profit increased by more than 20% in the first quarter. With the return of the refrigerator industry to market orientation, the Matthew effect of the strong is becoming prominent

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