Chinese Home Appliances Will Turn to Expand Domestic Sales Space under Sino-US Trade War

What kind of impact will the United States want to take on the trade warfare and its impact on the Chinese home appliance industry?

On April 9th, Wen Jianping, chairman of Orville Cloud Network, analyzed with the reporter of the First Financial and Economics that from the perspective of the evolution of the global structure, the intention of the United States is clearly not the tax itself, but that it hopes to achieve a crackdown on China through taxation measures. Purpose, so this matter will certainly have an impact on China's home appliances and consumer electronics industry, but it is not yet time to draw conclusions.

He also reminded that there are three points in the current situation that are worthy of attention by the Chinese home appliance industry: First, the United States inspires value communities such as Europe and Japan to jointly restrict and boycott China; second, it further expands the scope of the attack and regards restricting home appliance exports as an important object of sanctions; Blindly optimistic, not responding in time.

Guo Meide, vice president of AVC Cloud, stated that the development of China's household electrical appliance industry has been transformed from the former OEM manufacturing to the integrated mode of R&D, planning, manufacturing and sales. This time, the U.S. added tax measures on home appliances to China. There will be two impacts: First, there is little impact on air conditioners, kitchen appliances, small appliances, and health appliances. There is still a lot of room for domestic demand. These are service-oriented products, and exports to the United States are relatively low; As far as white electricity is concerned, domestic sales are faced with the trend of consumption upgrades with declining prices. Exports are the path for some enterprises, and some export-oriented enterprises will suffer some effects.

Ovid Cloud Network (AVC) data shows that in 2017, China’s TV and semi-finished TVs exported overseas reached 102 million units, of which 23.16 million units were exported to the United States, and 4.17 million units were exported to Mexico. The United States intends to publish it from April 4. According to the proposed list of tariffs on China's export commodities, the TV category involves TV components and some DVD players. The number of Chinese TV components or components exported to the United States in 2017 was only 200,000, so this impact is almost Can be ignored. If the United States continues to pressure, considering that the US's nominal local brand Vizio, RCA, etc. are all produced in China, the biggest harm will be the first American brand, the Korean brand will become the beneficiary, does not meet the Trang P. 'Protectionism'.

In terms of small household appliances, Li Ting, a research manager of AVC's home appliance big data division, introduced that the United States has a strong dependence on small household appliances, and that small home appliances are easy to install and easily transportable, and determine the number of their exports. The category ratio is significantly higher than household appliances, and the United States is a major exporter of small home appliances in China. Using 2017 data as an example, the country in which the number of electric oven products ranked first by export amount in the first half of 2017 is the United States. In the case of comprehensive trade warfare for household appliances, the relatively large number of products affected by the Chinese home appliance industry are mainly concentrated in the field of small household appliances such as microwave ovens and electric baking appliances. In addition, the US consumer is concerned with bread, biscuits, juices, etc. Western-style meals are in great demand, and production requires ovens, juicers, food machines, broken machines and other small appliances. These small appliances will inevitably affect the supply and demand relationship in the US market.

In addition, with the domestic emphasis on air quality and improvement, in 2018, the air purifier company's inventory pressure itself will be larger. The terminal pressure mainly comes from the weakening of the domestic market demand, the terminal price war is an inevitable guide, brand enterprises Upstream orders will also be reduced. Therefore, in this round of Sino-US trade wars, some small manufacturers in the upstream of the air purifier industry will face both domestic and foreign pressures. However, for downstream brands, the export pressure is much lower Domestic sales.

In other categories not included in the category, such as vacuum cleaner products, the United States is the largest exporter of vacuum cleaners in China. In 2017, exports to the United States exceeded exports by 30%. However, the list of tariff-enhancing goods proposals announced on April 4 only involved Some motor parts have little effect on the size of vacuum cleaners' exports. However, if the trade war continues, the vacuum cleaner upstream chain companies will switch to domestic sales, and the average price of vacuum cleaners will decline. This will inevitably bring fierce competition in the domestic market. "Impression" also urges domestic vacuum cleaner companies to constantly upgrade their product structure, technological breakthroughs, etc., in order to improve the competitiveness of the industry.

2016 GoodChinaBrand | ICP: 12011751 | China Exports