On July 28, the Political Bureau of the Central Committee proposed that one of the important tasks in the second half of the year is to "Guaranteeing House Delivery" and "Stabilize people's livelihood"; a series of policy measures such as "Guaranteeing House Delivery", lowering mortgage interest rates, and lowering the down payment ratio will allow arise the market’s confidence in the recovery of the property market has rebounded, and related real estate post-cycle industries such as the home appliance market have also increased their predictions for the future.
The golden age of real estate is also the "golden age" of China's home appliances. With the increase of China's urbanization rate, as a post-period industry of real estate, the home appliance industry has followed suit and has subsequently enjoyed a wave of "real estate dividends". With the development of the project, engineering channels have increasingly become an important channel for home appliance shipmets, and the explosion weakening of real estate companies once affected the revenue and net profit of home appliance companies.
How to Continue to Tap the Potential of the Real Estate Market?
Huang Qifan, the former mayor of Chongqing and the executive deputy director of the Academic Committee of the NationalInnovation and Development Strategy Research Association, mentioned that China's real estate is entering a new stage. Ten aspects such as land price, living quality, surrounding facilities and the debt ratio of real estate developers will usher in an inflection point. The growth model of high debt, high turnover, and land speculation is no longer moving. But at the same time, he also pointed out that real estate is a pillar industry, a civilian production industry, a financial industry, and a leading industry. It is associated with a large number of companies in the supply chain and drives dozens of industrial sales of products and consumer goods. Therefore, the government must control real estate speculation, avoid ups and downs, and ensure its stability. Therefore, ensuring the soft landing of real estate is a top priority, and the current state's "Guaranteeing House Delivery" measure is undoubtedly to boost the market's confidence in home buyers, to find "living water" in the consumer market, and to reactivate the real estate developer's capital link.
For home appliance enterprises, there are still opportunities for the "cake" of engineering channels, but industry experts have also proposed some risk avoidance measures. Firstly, enterprises should avoid "putting eggs in one basket" and expand the scope of cooperation to prevent excessive reliance on a single major customer risk; Secondly, control the proportion of engineering channels in the overall revenue. The proportion of engineering channels should not exceed 30%, which can be resisted by enterprises. However, if the proportion of engineering channels exceeds 70%, the enterprise faces extremely high risks. The core meaning lies in optimizing the overall channel ratio and improving the terminal retail capacity.
In addition to the deluxe housing market, the rediscovery of the stock housing market should also be valued by home appliance companies. Taking 2022 as an example, data from the Ministry of Housing and Urban-Rural Development shows that from January to August, 48,300 old urban communities and 7.99 million households will be newly renovated across the country. It is estimated that 51,000 old urban communities and 8.4 million households will be renovated throughout the year. In 2021, the renovation of 55,600 old communities has been completed, involving 9.65 million households. When the country implements the renovation of old residential areas, many users will also take the opportunity to renovate their interiors to achieve a new look inside and out. In addition, in first-tier cities, the transaction volume of second-hand housing is gradually crushing the transaction volume of new houses, and after the second-hand housing changes hands, the new owners will basically renovate. In this regard, industry insiders call it "the era of decoration and retail".
At present, companies including Robam Electric, Vantage, Haier, etc., have already started the exploration of the secondary home decoration market. In addition to selling electrical appliances, they have also started the exploration of integrated sales of home appliances such as complete decoration and local decoration. The above-mentioned people in the industry affirmed this approach, and believed that although the hardcover housing market is large and the growth driven by engineering channels is fast, it is still necessary to carefully maintain the proportion of channels to stabilize corporate cash flow. Grasp the trend of refurbishment in the stock housing market, and you can also seize the market.
