Core reading Promoting household appliance consumption is not only an important measure to actively expand domestic demand, but also an inevitable move to comply with the trend of consumption upgrading. Carry out trade in and activate the stock market; Develop new products, launch new functions, and expand the incremental market; Focus on the sinking market, layout store channels, and establish a service system... Based on the upgrading demand of household appliance consumption, create more levels of demand with a higher level of supply, and the potential of the household appliance market will be further released to help improve the quality and capacity of consumption. A set of data can prove the strength of China's home appliance industry today—— In 2021, the main business income of the household appliance industry reached 1.73 trillion yuan, and the annual cumulative exports exceeded the $100 billion mark for the first time. China's household appliance trade share accounted for 38% of the world. As a major household appliance manufacturer, promoting household appliance consumption is not only an important measure to actively expand domestic demand, but also an inevitable move to comply with the trend of consumption upgrading. The executive meeting of the State Council held on July 13 pointed out that we should speed up the release of the consumption potential of green smart home appliances, and put forward measures such as exchanging old home appliances for new ones and sending home appliances to the countryside, improving the standards of green smart home appliances, and supporting the development of waste home appliances recycling. "Although the household appliance market is under obvious pressure at present, the fundamentals of the long-term improvement of the industry have not changed, and people's demand for upgrading high-quality consumption remains." Jiang Feng, executive director of the China Household Appliance Association, said that China's household appliance industry still has great potential by continuously activating the stock market, constantly developing new categories, and working hard to sink the market. Trade in the old and activate the stock market "The household air conditioner is in disrepair for a long time. I want to replace it, but I can't dismantle it myself." Recently, Mr. Chen, who lives in Haidian District, Beijing, saw the Midea home appliance "trade in" service project on his mobile phone. With just one click to place an order, someone came to collect it. "There is no limit to brands, and he can get a renewal subsidy. It's too convenient!" The initiative of door-to-door recycling and the exchange of old for new have not only brought waste household appliances into the recycling system, reduced environmental pollution, but also revitalized the stock market and cultivated new growth points. By the end of May this year, more than 120000 users had received Midea renewal subsidies, promoting the sales of 137000 household appliances and achieving sales of 340million yuan. In recent years, the overall growth rate of the traditional household appliance industry has slowed down, shifting from the incremental market to the stock market. Statistics show that China's electricity ownership has exceeded 2.1 billion units. Taking air conditioners as an example, the average annual ownership of air conditioners per 100 households has increased from 70.4 units in 2013 to 117.7 units in 2020. "Replacing the old with the new and promoting consumption upgrading products have become the focus of the development of the household appliance industry." Jiang Feng said. Trade in the old for the new, and the difficulty lies in collecting the old. "It is difficult to deal with old household appliances, which often affects consumers' willingness to replace them." Jiang Feng believes that further opening up the channels for the collection, demolition and replacement of household appliances, reducing the threshold for replacement and shortening the time for replacement can not only optimize the consumer experience, but also better activate the stock market. With recycling to promote renewal, all industry participants are actively working together. During the "618" period of this year, JD home appliances launched the "cross category free exchange" activity, which not only does not limit the category, brand and age of recycled home appliances, but also allows free door-to-door demolition and handling, helping consumers solve the difficult problem of handling old home appliances. In July, Haier will launch a digital recycling platform for the home appliance industry, covering more than 2800 counties and cities across the country. Users only need to submit their needs on the mobile application, and then a specially assigned person will come to the door to evaluate it, and the old will be collected and sent to the new one for completion. "Replacing the old with the new is essentially to stimulate users to replace new products in a preferential way, so as to find increment in the stock market." Yin Sheng, head of the green recycling project of Midea Group, said that it involves many links such as production, circulation, consumption and recycling, and recycling at the end is particularly critical. "It is suggested to implement the recycling target responsibility system for household appliance manufacturers, and encourage the integration of sending new products and collecting old ones by opening up recycling and renewal channels, so as to better promote the renewal and consumption of household appliances." Innovation driven, exploring incremental markets When the stock market is close to saturation, how to use technological breakthroughs to meet the diversified and personalized needs of consumers has become an examination question to open a new space for household appliance consumption. -- develop new products and open up new tracks. One hour sales exceeded 200million yuan, and the final online transaction volume exceeded 400million yuan, with a year-on-year increase of 41%. On the first day of "618" this year, Tianke intelligent floor washer achieved a "good start". "Intellectualization is an important direction for the innovation of household appliances." Leng Ling, CEO of Tianke intelligent technology, believes that transforming household appliances into intelligent media that "can think and understand users", figuring out consumer needs and optimizing the use experience are the key to maintain the growth of enterprise performance. The retail sales of emerging products have maintained rapid growth and become one of the main driving forces for the development of China's household appliance industry. Take clothes dryers as an example. In 2021, the retail sales of this emerging product was 5.7 billion yuan, a year-on-year increase of 78.2%, and the retail sales of intelligent cleaning products such as vacuum cleaners was 30.9 billion yuan, a year-on-year increase of 28.9%. -- develop new functions and create new experiences. "Just a week after its launch, the sales volume of the new air fryer exceeded 10000." According to the relevant person in charge of Jiuyang Co., Ltd., the new air fryer applies the three-dimensional hot air circulation heating technology to make the food heated more evenly without turning over, which effectively solves the pain points of traditional products and is favored by consumers. "Despite the fierce market competition, it is still the key to expand the incremental market to solve users' pain points and polish products." In addition to function upgrading, many home appliance enterprises will also focus on the user experience of consumers. "Please turn on viewing mode." At the command, the TV automatically opens, the curtains are slowly pulled up, and the lights bring out a suitable atmosphere. From selling products to customized services, Haier innovatively launched the scene brand "three winged bird", which provides consumers with full scene solutions for smart families, and also drives product sales to rise. "To expand the incremental market, we need to create more levels of demand with a higher level of supply." Jiang Feng said that the upgrading demand of consumers for high-quality, intelligent, green and other new consumption will encourage enterprises to invest more resources in research and development, promote collaborative innovation in the upstream and downstream of the industrial chain, and boost the upgrading of the industrial structure of household appliances. Home appliances go to the countryside, deeply cultivate and sink the market Counties, towns and rural areas are an important part of China's sinking market. According to the report on China's home appliance market in 2021 released by China Institute of electronic information industry development, in 2021, the sinking market, which accounts for 70% of the population, accounted for 31.5% of the retail sales of home appliances, and the market size reached 277.5 billion yuan, an increase of 8.9% year-on-year. The growth rate is much higher than the overall market, becoming the pole with the most growth potential in the home appliance market. "In 2008, the country promoted home appliances to the countryside, boosting the popularity of rural home appliances." According to Jiang Feng's analysis, now that these old household appliances are about to be upgraded, rural consumers are facing a demand change from "yes" to "good", and the sinking market space is still very broad. In the face of the needs of upgrading the sinking market and the popularization of new products, household appliance enterprises have accelerated the layout of store channels and established and improved service systems. "Consumers in the sinking market are not without consumption willingness and ability, but lack of appropriate channels to choose good products." Lu Weibing, a partner of Xiaomi group, said that by opening direct stores in the county and authorized stores in villages and towns, and reducing intermediate links, new products can be directly faced with consumers. "At present, the market coverage of Xiaomi Direct stores in the county has increased from 30% two years ago to more than 90% Manufacturers are making efforts, and the platform is also helping. "With the same price and service online and offline, you can also experience new products and models on site." Recently, Mr. Wang, who lives in dajinkou Township, Tai'an City, Shandong Province, bought a set of variable-frequency silent smoke stoves at the local Jingdong home appliance store, "you can see and touch it, and it's more reassuring to use it." According to reports, the total number of JD home appliance stores has exceeded 15000, covering 25000 towns and 600000 administrative villages. "In recent years, with the continuous popularization of the Internet and more smooth logistics, the convenience of rural residents to purchase household appliances has increased significantly." Jiang Feng believes that with the further improvement of rural residents' income and the continuous improvement of rural power consumption environment, the consumption potential of the home appliance market will be further released.