Sina Technology News, early morning of March 3rd - with the upcoming convening of the National People's Congress sessions, Zhang Jindong, a member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Suning Appliances, proposed three follow-up policies to stimulate home appliance consumption.
In 2008, the state successively launched consumer stimulation policies such as rural home appliances, trade-in programs, and energy-saving air conditioning subsidies, which released the purchasing power of urban and rural residents. Taking the rural home appliances program as an example, by the end of January 2012, the national cumulative sales of rural home appliances reached 2.2 billion units, achieving sales revenue of 519.66 billion yuan, and a total subsidy of 60.59 billion yuan was distributed.
Zhang Jindong believes that it is necessary to implement follow-up policies for home appliance consumption. He proposed three recommendations: "conduct purchase subsidies for high-efficiency home appliances," "vigorously promote credit consumption," and "direct subsidies for buyers of affordable housing."
He suggested that the intensity of consumption subsidies for high-efficiency home appliances be controlled at around 5% of the product's selling price, and not bundled with the recycling of old appliances. This way, it can not only play a certain stimulating role in the home appliance consumption market but also keep the impact within a reasonable range.
Currently, China's residents have to bear about 10% annual fees and interest for credit consumption, and the high transaction costs are one of the concerns for consumers engaging in credit consumption. Therefore, Zhang Jindong suggested linking the reduction of the bank reserve requirement ratio with the credit consumption quota, and conducting low-interest installment payment activities jointly with banks. The banks and enterprises will jointly bear the transaction costs, eliminating consumers' worries. This can effectively reduce financial risks while promoting consumption through installment payments and playing a role in boosting domestic demand.
From 2012 to 2013, China will complete 17 million units of affordable housing. This is an opportunity for real estate-related industries such as building materials, home furnishings, and home appliances. Zhang Jindong suggests implementing direct subsidy policies for purchasers of affordable housing, with subsidies covering high-efficiency products in categories such as televisions, refrigerators, washing machines, air conditioners, kitchen and bathroom appliances, and household appliances. (Zhou Wei)
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