Consumer China

Sending white goods to the countryside

  • Published 03 Sep 2009

Beijing's initiative to subsidise the sale of household appliances in rural China has been gaining traction in recent months though it is not expected to unlock the kind of spending splurge the government had initially hoped for.

Following pilot studies across some selected provinces, the 'Sending White Goods to the Countryside' scheme went nationwide in February. Thousands of selected white goods from televisions and refrigerators to water heaters and air conditioners were sent out to stores across rural China where farmers could buy goods and apply for a 13% rebate, courtesy of the government. Since then, the government has been continuing to iron out a number of shortcomings (CC 5th March Consumer China) and sales have been starting to gain traction. Revenues generated from sales through the scheme shot up 61% month-on-month in July to reach Rmb 8.8bn ($1.29bn, €900m, £795bn). And product sales in the first six months helped buoy 1H results among some domestic appliance retailers.

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