Observe: Subsidy Triggers the "Matthew Effect" of the Water Heater Industry

After undergoing policy subsidies for home appliances to the countryside, trade-in replacements, and so on in 2011, a new round of home appliance subsidies for energy-saving and people-friendly policies in 2012 has been officially released. Under the guidance of the policy, the home appliance industry will usher in new opportunities for development. In this policy of saving energy and benefiting the people, the product of water heater is a major bright spot. It has changed the identity of the “replacement team” in home appliances to the countryside and has become the focus of this policy. Water heater subsidy quota ranges from 100 yuan to 600 yuan, compared to air conditioners, refrigerators, washing machines and other products, its subsidies are greater. The implementation of the subsidy policy will guide consumers to develop energy-saving and low-carbon consumption habits, and will further promote the upgrading of water heater products, and ultimately realize the transformation and upgrading of the water heater industry.

The current market for water heaters, electric water heater sales top, followed by gas water heaters and solar water heaters, and the general concern of air energy water heaters is relatively low, is still a niche products. In this subsidy, electric water heaters are not on the list because they do not have the advantages of energy efficiency and environmental protection. From the subsidy rules, it can be seen that the introduction of the New Deal has been able to stimulate consumer spending on the one hand, and it has also become a benchmark for product structure adjustment on the other.

Although gas water heaters are more green and energy-efficient than electric water heaters, this energy-saving Huimin policy only subsidizes gas-fired water heaters with a level 1 energy efficiency. According to national standards, the thermal load efficiency required for gas-fired water heaters' level 1 energy efficiency is 96%. 2 Grade energy efficiency is 88%. At present, the energy efficiency of water heaters on the market still occupies the mainstream of the market. In the promotion of the policy, there will be greater room for improvement in the next category of energy-efficient water heaters. Air energy water heaters and solar water heaters have become the focus of this subsidy as a model of green products. For air-energy water heaters, the introduction of the New Deal has played a good role in market promotion and cultivation, allowing more people to recognize air-energy water heaters, and to understand its advantages in energy-saving and environmental protection, and lay a good foundation for future sales. The basis; and for solar water heaters, the New Deal is an effective boost to market confidence, can effectively enhance the industry's boom.

The transformation of the water heater industry is reflected in two aspects. First, industrial resources are tilted toward large enterprises, and industrial concentration is increased. Second, the share of high-efficiency and energy-saving products is increased. To enjoy this energy-saving product, the price subsidy must be paid by the manufacturer first. Under the background of the credit crunch, this method will cause certain pressure on the company's capital chain, and at the same time, it will also increase the threshold for enterprise entry. Only those companies with large sales volume, high profits, and strong technology can enter the subsidy gate. Over time, industrial resources will be tilted toward these large companies, and the Matthew effect of the industry will become increasingly apparent. With the continuous increase in industrial concentration, leading companies will further increase technological innovation, strengthen cost control, and accelerate the pace of product replacement. Secondly, home appliance stores will also adjust their sales strategies in accordance with the orientation of the New Deal, and give more attention to energy-efficient products from the aspects of product procurement and marketing. Third, with the continuous improvement of consumers' awareness of energy conservation and environmental protection, their willingness to purchase energy-efficient products will become more and more intense. Under the promotion of subsidy policies, the market share of energy-efficient water heaters will further increase.

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