The home appliance industry continued its rapid recovery momentum in the fourth quarter of last year. The industry’s prosperity has greatly improved, the policy effect of promoting home appliance consumption has continued to expand, the recovery of home appliance exports has accelerated, the industry’s efficiency has improved significantly, and all indicators have turned in a positive direction.

The home appliance industry should comprehensively analyze the situation, keep a clear head, strive to seize opportunities, accelerate the transformation of development methods, vigorously strengthen technological innovation, promote industrial upgrading, and change its low-end position in the global home appliance value chain.

“The home appliance industry is operating very well in the first quarter of this year. The market is booming, production and sales are booming, corporate profits are increasing, and manufacturers are full of confidence. It can be said that it has achieved a ‘good start’.” Jiang Feng, chairman of the China Household Electrical Appliances Association, said in an interview with reporters that the China Economic Home Appliance Industry Prosperity Index accurately reflects the continued positive development trend of the home appliance industry.

Since the beginning of this year, the home appliance market has shown a situation of strong domestic and foreign sales. Not only is domestic demand strong, but exports have also achieved a recovery growth, which has driven the continuous improvement of the industry’s production and operation conditions. In the first quarter, the year-on-year growth rate of major economic indicators such as production, sales revenue, total profit, exports and ex-factory prices in the home appliance industry has further increased compared with the previous quarter.

Some leading home appliance companies also performed very well in the first quarter. Hefei Sanyo (600983, Stock Bar) expects a year-on-year increase of more than 50% in net profit in the first quarter. TCL Group’s global sales of LCD TVs from January to March 2010 reached 1.9272 million units, a year-on-year increase of 60.77%.

“The good development momentum of the home appliance industry is mainly due to the policy factors issued by the state to support the development of the home appliance industry.” Jiang Feng said that my country’s rural market has huge potential and very good growth. The “home appliances to the countryside” policy has promoted the rapid development of the rural market, aroused the purchasing enthusiasm of rural consumers, accelerated the pace of popularization of home appliances, and provided major development opportunities for home appliance companies. The penetration rate of home appliances in the urban market is very high. The “old for new” policy of home appliances has effectively stimulated upgrading consumption and promoted the adjustment of the product structure of the home appliance industry.