家电下乡补贴吸引消费者

As the Chinese economy slows, the government has introduced a series of subsidy plans to boost consumption, and while large energy saving electrical home appliances are among them, smaller ones aren't part of the national plan. But the China Home Appliance Association has begun one for small appliances.

Starting Friday many electrical home appliance chain retailers together with the Association will try to attract buyers by providing cash subsidies.
 
Secretary in Chief Xu Dongsheng is from the China Home Appliance Association.

"We will provide a 50 yuan cash subsidy on purchases of 500 yuan and ones priced at 1,000 yuan or more will enjoy a 100 yuan subsidy. It's like a 10 percent discount."

In June, the Chinese government introduced national subsidy program for energy-saving electrical home appliances. The industry considered it as the fuse that would ignite a new round of buying following previous similar programs to encourage rural residents to purchase home appliances and home appliance trade-in programs.

The smaller electric home appliances subsidy is a supplement to the national subsidy program. In order to protect consumers, only retailers who are authorized by the China Home Appliance Association can participate in the program. Vice President of Gome Song Linlin says the program will work the same way previous ones did.

"Customers will be able to receive cash back right after purchases at the store's service counter."

This year, the central government has set aside 26.5 billion yuan subsidies for large energy saving appliances such as air conditioners, TV sets and refrigerators, as well as 2.2 billion yuan for energy saving lamps and LED lamps. Another 6 billion yuan will be used to subsidize purchases of automobiles with engines of 1.6 liters or less. This plan is expected to encourage 500 billion yuan worth of domestic consumption.

Smaller appliances such as microwave ovens are usually priced lower and the national subsidy program hasn't covered this part of the market. But the demand for smaller electric appliances has grown in recent years and industry analysts believe that the subsidy plan initiated by the China Home Appliance Association will encourage more purchases. Secretary in Chief Xu Dongsheng explains:

"We are trying to fill in what the national plan lacks. The economy needs to be further boosted, and at the same time, consumers will receive real discounts."

Home appliance sales fell in the first quarter after a previous subsidy program expired at the end of last year. The sales of home appliances dipped 0.53 percent annually and air conditioners and electrical heaters sank 3.2 percent and 24.8 percent, respectively.

For CRI, I'm Liu Min.