The ongoing economic turmoil across the US and Europe has had a severe impact on China’s export-oriented economy, which has seen several layoffs and shutting down of many factories in recent months. The consumer electronics (CE) industry is also one of the victims. Industry estimates suggest that the retail sales of consumer electronics in China will grow by merely 8%-10% in 2008, half of the growth reported in 2007. The outlook for 2009 remains uncertain.
Considering the impact of global crisis on the Chinese economy, the government rolled out a program called “Delivering Appliances to the Countryside” in December to boost its domestic CE industry. The program offers a 13% subsidy to farmers who spend their savings on refrigerators, washing machines, color televisions and cell phones. China has set huge goals and expects rural families to buy 480 Million appliances over the four-year life of the appliance program, beginning December 1, 2008.
“This move will possibly urge millions of rural residents to buy electronic appliances in coming few months, stimulating consumption and keeping the factories of CE manufacturers hummingâ€, says an analyst at RNCOS. Also, this can also be considered as a strategic move as there remains potentially high demand for CE products in rural china when compared to the urban counterparts, added the analyst stating the figures from China national bureau of statistics.
According to the bureau, for every 100 rural households in China in 2007, there were 94 color TV sets, 26 refrigerators and 46 washing machines. This compares with 138 color TV sets, 95 refrigerators and 97 washing machines for every 100 urban households.
In line with this, “Chinese Consumer Electronics Market till 2011â€, a RNCOS research, offers rational assessment of the consumer electronics market in China. The report evaluates the factors vital to the development and success of the industry. It looks into the current market scenario to present a future outlook of the market.
For the purpose of this report, the consumer electronics market has been divided into various segments, like Home Appliances, Sound & Images, Mobile Phones, and Personal Computers.
About RNCOS:
RNCOS, incorporated in the year 2002, is an industry research firm. We are a team of industry experts who analyze data collected from credible sources. We provide industry insights and analysis that helps corporations to take timely and accurate business decision in today’s globally competitive environment.
We are running a special offer on select reports till Year end, where you can avail our reports at discounted prices. Please click here to know more: http://www.rncos.com/promotion.htm
For more information visit: http://www.rncos.com/Report/IM583.htm
Current Industry News: http://www.rncos.com/Blog/
