The home appliance market has great potential for resilience
Since the beginning of this year, despite the impact of the new crown pneumonia epidemic, the characteristics of the mainland home appliance market with strong resilience and great potential have not changed.
A few days ago, the General Office of the State Council issued the "Opinions on Further Releasing Consumption Potential and Promoting the Sustained Recovery of Consumption", proposing to vigorously develop green consumption and fully tap the consumption potential of counties and townships. "Policy guidance and basic demand-driven are expected to add a touch of color to the 'May Day' home appliance market." Liu Jiyuan, research director of the kitchen and bathroom big data division of Aowei Cloud Network, said that with the gradual control of the impact of the epidemic, the implementation of policies and measures to promote consumption has taken effect, coupled with the high efficiency and multi-touch force of e-commerce, the home appliance market may appear "small explosive" growth in the later period.
Consumption coupons drive sales
On the first day of the "May Day" holiday, Wang Jingyu, a resident of Dongcheng District of Beijing, and his lover held a negative nucleic acid test certificate within 48 hours and entered the Beijing Suning Tesco Lenovo Bridge store to buy home appliances. "When you buy a refrigerator, you buy a large capacity, which does not occupy an area, and energy saving is very important." Wang Jingyu introduced that his home is a one-bedroom apartment of 60 square meters, and the purchase of home appliances should be less and more refined.
After careful selection, Wang Jingyu and his wife purchased a free built-in refrigerator and washing and drying machine, all of which are first-class energy efficiency products. Among them, the total volume of the refrigerator is 500 liters, and it also has the function of controlling oxygen and preserving freshness. Due to the Beijing green energy-saving consumption coupons and promotional offers, they saved 2200 yuan on this purchase.
According to the policy of promoting green energy-saving consumption issued by Beijing Municipality, from April to September this year, green energy-saving consumption coupons will be issued to consumers in Beijing to encourage consumers to purchase and use green energy-saving products, and the applicable products of consumption coupons include televisions, air conditioners, refrigerators, washing machines, laptops, tablet computers and other 20 categories.
"At present, consumers have received 124,800 Beijing green energy-saving consumption coupons through the Suning Tesco APP, driving home appliance sales of 35 million yuan." Lu Fuyan, marketing director of Beijing Suning Tesco, told reporters that since April, beijing Suning Tesco's energy-efficient air conditioners and refrigerators and freezers have performed eye-catchingly, with a year-on-year increase of 180%.
Judging from the feedback from manufacturers, due to the impact of the epidemic, the demand for food storage in some areas has increased, which has led to the sales of refrigerators and freezers. At the end of April, the sales data of hisense refrigerator companies' cold products increased significantly compared with the beginning of April. The relevant person in charge of Hisense Refrigerator Company said that the company has increased the production and supply of large-capacity refrigerators and household freezers, and strengthened technological upgrading and research and development. The newly launched WILL SPACE ultra-space refrigerator with healthy sound and freshness, the inner wall thickness is only 33 mm, which is larger than the internal space of ordinary refrigerators, the amount of foam material is greatly reduced, and the emission reduction effect is obvious.
New categories are growing rapidly
At present, the normalization of epidemic prevention and control, the reduction of store crowds, home appliance manufacturers actively carry out marketing innovation, through online and offline integration to expand the market, more efficient link users, promote conversion.
On the occasion of "May Day", Boss Electrical Appliances held a large-scale live broadcast event online, and corporate executives brought star experience officers to promote. After a large-scale marketing promotion and the organization of various outlets in the early stage, the cumulative exposure of live broadcast activities on the whole network was 64.588 million, the number of viewers was 626,000, and nearly 40,000 consumer bookings were made. Among them, there are more than 10,000 dishwashers. Boss electrical CMO Ye Danpeng said that at present, domestic kitchen appliance brands attach great importance to the development of emerging categories such as dishwashers and integrated stoves, and the investment in research and development is increasing, and the pace of product innovation is accelerating, making the demand for new categories more and more vigorous. The company should meet the needs of consumers at all levels for high-quality kitchen life with more complete categories and better products.
Compared with the pressure operation of the home appliance market, the sales of emerging categories have maintained a rapid growth momentum. According to the total data of Aowei Cloud Network, the retail sales of dishwashers in the first quarter of this year increased by 20.6% year-on-year, and the retail sales in the second quarter are expected to increase by 23% year-on-year. During the "May Day" period, the retail sales of clothes dryers are expected to increase by 55% year-on-year.
"The penetration rate of dishwashers in the mainland is now about 2 units/100 households, which is far lower than that of Japan, Italy and other countries, and the market still has a lot of room for growth in the long run." Liu Jiyuan said that people's yearning for a better life has put forward new demand for home appliances, and business opportunities in market segments are emerging. With the expansion of the use of the scene, the balcony scene has a clothes dryer, the kitchen scene has an integrated stove, dishwasher, and the living room scene has a projector.
The recent meeting of the Political Bureau of the CPC Central Committee called for responding to market concerns in a timely manner, steadily promoting the reform of the stock issuance and registration system, actively introducing long-term investors, and maintaining the smooth operation of the capital market.
Recently, relevant departments have intensively proposed measures to steadily promote medium- and long-term funds into the market. Experts said that in the short term, these measures will further stabilize investor expectations, boost confidence of all parties, and maintain market stability; in the long run, the medium- and long-term funds of various channels are expected to further expand the proportion of equity investment, and become the "stabilizer" and "ballast stone" in the mainland capital market in the medium and long term.
The proportion of institutional investors has steadily increased
Recently, due to the increase in unstable and uncertain factors, A shares have experienced sharp fluctuations. How to guide more medium- and long-term funds into the market to stabilize short-term market fluctuations and further improve market resilience has become one of the key tasks promoted by regulators.
On April 26, the China Securities Regulatory Commission (CSRC) issued the Opinions on Accelerating the High-quality Development of the Public Fund Industry, proposing to increase the proportion of medium- and long-term funds. Continue to promote insurance, wealth management, trust and other types of asset management institutions to increase the actual proportion of equity investment through direct investment, entrusted investment, public funds and other forms.
Zhang Jun, chief economist of Morgan Stanley Securities (China), said that comparatively speaking, short-term funds excessively pursue short-term returns, and their proportion is too high, which will cause short-term fluctuations in the market, push up systemic financial risks, and is not conducive to the healthy and stable development of the financial market.
In recent years, the proportion of institutional investors holdings in the market value of A-shares has generally shown an upward trend. The data shows that the proportion of professional institutional investors holding the outstanding stock market value rose from 18% at the beginning of 2019 to 24.6% at the end of 2021. At the same time, foreign capital has gradually become an important supplier of medium- and long-term funds. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the 2022 annual meeting of the Boao Forum for Asia that great progress has been made in the introduction of foreign institutional investor funds in recent years, and a total of 887.4 billion yuan of foreign capital has been introduced into the stock market from 2019 to 2021, accounting for about 4.5% of the market value of A-shares.
However, experts said that compared with overseas mature markets, the overall proportion of mainland institutional investors' stock market value is still low, and there is a large room for improvement in the future.
"Overseas medium- and long-term investors are still optimistic about China's economy and RMB assets, and can attract and import more overseas medium- and long-term funds in the context of increasing financial opening up at home and accelerating international integration at the institutional level." Zhang Jun said.
The entry of personal pensions into the market brings new opportunities
Not long ago, the General Office of the State Council issued the "Opinions on Promoting the Development of Individual Pensions", which clarifies that individual pension participants can independently choose to purchase financial products such as savings deposits, bank wealth management, commercial pension insurance, and public funds that meet the regulations. The CSRC said that the Opinions will help accelerate the construction of a new pattern of benign interaction and coordinated development between pensions, capital markets and the real economy. The capital market will help pensions share the fruits of the development of the real economy, promote the realization of long-term pension preservation and appreciation, and actively cope with the aging of the population; pensions have long-term, normative and large-scale, and provide more long-term and stable development funds for the real economy through active investment in the capital market.
People in the industry generally believe that the development of personal pensions is expected to bring more incremental funds to the capital market, which is conducive to cultivating and developing long-term institutional investors, and is also conducive to further boosting market confidence.
Li Qiusuo, managing director and strategic analyst of THEC Research Department, said that the construction of the individual pension system is conducive to the development of new business of financial institutions such as relevant banks, insurance, and public funds, and is also expected to bring new types of long-term investors to the capital market. Judging from the experience of some mature markets, the establishment of the relevant pension insurance system has brought long-term funds to its capital market and played a better role in supporting the long-term and steady development of its stock market.
"The income payment characteristics of personal pension determine that it is aimed at long-term value preservation and appreciation, and the security and robustness are high, so the vigorous development of personal pension will provide long-term stable capital inflow for the capital market and play a positive role in the steady development of the capital market." Li Zhan, chief economist of the research department of China Merchants Fund, said.
Trade-in has a lot of potential
Taking advantage of the "May Day" promotion node, Wang Kangjin, a resident of Jinshui District of Zhengzhou City, went to a local store to buy home appliances. "My home appliances have been used for many years, and I want to replace the refrigerator, washing machine and air conditioner while taking advantage of the subsidy for the old appliances." Wang Kangjin said that he lives in an old house, which has greater restrictions on the size and location of home appliances, and the merchant also sends a home improvement designer to measure in advance.
Since March this year, Zhengzhou has launched a trade-in activity for home appliances, that is, subsidies are given according to 20% of the actual transaction price of a single new home appliance, and the maximum subsidy is not more than 500 yuan / unit. Trade-in activities are popular with consumers.
At present, the sales of the mainland home appliance market show obvious characteristics of stock to increment. The China Household Electrical Appliances Service And Maintenance Association predicts that the stock of the mainland home appliance market will increase by more than 50% this year, which will become a new trend in the consumer market.
On April 26, the activity of "setting off a larger scale in history of 100 cities and thousands of household appliances to benefit the people from the old and rejuvenate the trend" was launched. Liu Xiumin, chairman of the presidium of the Council of china Household Electrical Appliances Service And Maintenance Association, said that this event will wake up the new concept of consumer home appliance consumption through the construction of new scenes of home appliance consumption, and promote the replacement of old home appliances.
Take advantage of professional investors
In recent years, the deepening reform of the mainland capital market has continued to advance, constantly creating conditions for attracting all kinds of institutional investors, and professional institutional investors have been able to develop rapidly.
Taking public funds as an example, the scale of public funds and equity funds has achieved large-scale growth. According to the data, by the end of 2021, the total scale of public funds exceeded 25.6 trillion yuan, of which the scale of equity funds was 9 trillion yuan, accounting for 35.2%.
Jiang Xiangyang, chairman of Boshi Fund, said that the rapid development of institutional investors and long-term funds has enhanced the buyer's strength of the capital market, formed an effective check and balance on the financing and operation of listed companies through market-oriented methods, and is conducive to the capital market to play a pivotal role in resource allocation.
How to further play the role of professional investors in the future? "Institutional investors should be vigorously developed and medium- and long-term funds should be introduced." In Li Zhan's view, we should further promote the relaxation of the proportion and scope of medium- and long-term funds entering the market, and accelerate the introduction of relevant policies to guide long-term investment of funds.
Wang Yifeng, chief analyst of the financial industry of Everbright Securities, said that for insurance funds, insurance institutions can continue to be guided to allocate more funds to equity assets, moderately increase the proportion of equity asset allocation, and support insurance companies to increase capital market investment through direct investment, entrusted investment and other channels; for bank wealth management funds, bank wealth management business needs to further strengthen investment capacity building, steadily involve and expand equity asset investment.
Zhou Lei
Source: Economic Daily