The policy is to make the double-edged sword home appliance industry suffer from "subsidy dependency syndrome"

While a large area of ​​inventory allows home appliance companies to sit down, 26.5 billion energy consumer appliances consumption subsidies can be described as eased the urgent need. In mid-May, the State Council's executive meeting adopted policies and measures to promote the consumption of energy-saving appliances and other products, and decided to arrange financial subsidies of 26.5 billion yuan to start promoting air-conditioners, flat-panel TVs, refrigerators, washing machines, and water heaters that meet energy-saving standards. The promotion period is tentatively set to One year.

But don't be too happy. Looking at history, policy stimulus is like a double-edged sword, which has brought about a surge in sales while also causing the gross profit of enterprises to drastically decline. Previously, in the face of home appliances to the countryside, trade-in and other new policies, the household electrical appliance companies did not compete for subsidies, "Great Leap Forward" to start construction, in this stimulation, the success of Haier, the United States into the "one hundred billion sales club", even if The Galanz and Chih-hsiung enterprises that play with fresh tricks also gave up the rhetoric to do “next”.

However, the cakes that more than a dozen companies had eaten were distributed to hundreds of them, and gross profit was spread even more and more thinly. Coupled with the rise in prices of raw materials and other products, the home appliance industry has become a truly "micro-profit industry." In 2011, Gree, the only player left behind, had only 18.07% gross profit margin.

The reality of low gross profit margins does not bring about substantial rethinking to companies, and many companies even suffer from "subsidy dependency syndrome." For Chigo, its 2009 annual report shows that the amount of subsidies received by the company from the national “Energy Saving and Civil Engineering” energy-efficient air conditioner promotion subsidy policy was as high as 233.6 million yuan, accounting for 74% of the annual net profit. However, when the subsidy policy lasting for two years ceased in mid-2011, Chigo suffered an unprecedented crisis and suffered a loss in the mid-2011 reporting period.

Right now, faced with the temptation of a subsidy of 26.5 billion, no one will not be excited. "Corporate transformation" may again become an argument made by the big brothers of home appliances in the face of the public. Although the current policy measures amend the old version of the home appliance subsidy, it only stops at stimulating enterprises to carry out energy-saving technology research and development.

The original intention of the New Deal was "fullness," and it is hoped that the company will strengthen the research and development of energy-saving technologies to enhance its core competitiveness. But the reality is very "bone": If the New Deal is not properly handled, it will bring home appliance companies into an endless arms-saving "energy race" technology that will allow them to take into account the corporate governance structure. In other words, in order to be able to obtain generous subsidies, companies will call a large amount of manpower to support technology research and development, and the original situation of raising sales through human-sea tactics can not be fundamentally changed, "all sales to the market" of the marketing structure and low Maori's embarrassment will still exist for a long time and there is no way to talk about corporate transformation.

It is worth mentioning that Chigo who suffered from "subsidy dependency syndrome" seems to have taken the lead again in this new policy. Earlier this year, Zheng Zuyi, the executive vice president of Guangdong Zhi Gaoyuan, who made the technology come to replace Lei Jianghang, became the executive director and vice chairman of the board of directors of Zhigao Holdings. Zheng Zuyi is recognized in the industry as a "energy-saving master". He used to work for Gree air-conditioning for 6 years. In 2001, Greencool chief Gu Chujun took over Kelon and entered Kelon to do technical work - "Gu Kelong" Times Division. The "double-efficient" miracle created by the dragon is the perfect work of Zheng Zuyi.