The coming expiration of home appliance subsidy from government has not impacted the industry in opening new chain stores. Suning Appliance announced yesterday that it is expected to have 410 new stores this year and more than 400 (including Hong Kong and Japanese markets) for the next year. The pace of its expansion will not change very much. The industry believed that Suning’s constant expansion at such a high rate is a strong response to Gome’s expansion strategy with both its Dazhong Electronics and Yongle brands.

 

Suning said that the growth of home appliance market is becoming stable as government is phasing out its consumer incentive policies and is pushing forward its macro-economic regulations. However, on the one hand, there will be greater demands for home appliances in second- and third-tier markets with the acceleration of urbanization. On the other hand, consumer’s higher demands for new products and new technologies, especially for consumer electronics, will maintain the industry’s rapid growth and lead to greater potential for its development.