Founder: National subsidies continue to stabilize market expectations, policy combination benefits spring festival home appliance consumption.

The Founder released a research report stating that in the short term, a diversified policy mix would amplify the value of customer flow and effectively promote festival consumption. Nationwide and local authorities are promoting policies to boost consumption during the Spring Festival, such as trading in old for new, prize-winning invoices, and subsidy vouchers, effectively boosting consumption during the festival period and overall enhancing customer flow, conversion, and sales efficiency at offline channels during the Spring Festival, promoting real sales growth at offline terminals in the short term. In the long term, with the gradual implementation of national subsidy funding plans, market uncertainty about post-subsidy periods is gradually decreasing, which is conducive to the long-term stability of the home appliance market. Founder's main points are as follows: The remarkable leverage effect of the national subsidy in 2025 fully demonstrates the necessity and feasibility of policy tools to activate market vitality. The national subsidy has continuously improved the fundamentals of consumption. In 2025, China's total retail sales of consumer goods increased by 3.7% year-on-year, with the retail sales of household appliances and audio-visual equipment goods increasing by 13.5%. Since the second half of 2024, national subsidy policies have been successively promoted, driving the rapid growth of retail sales of household appliances, which quickly surpassed the overall growth of retail sales and maintained a high growth rate, indicating that national subsidies have stimulated the vitality of home appliance consumption. In 2026, adjustments to the scope of "national subsidies" will focus on environmentally friendly and technological products. According to the Ministry of Commerce, in 2026, there have been slight changes to the national subsidy standards, reducing the subsidy ratio and amount limit for individual household appliance products, raising the minimum energy efficiency and water efficiency standards covered by the subsidies from level two to level one. The new standards also involve adjustments to the coverage category range, with a focus on environmentally friendly household appliances and smart products to promote the industry's advancement towards high-end and green development. During the Spring Festival, various regions have adopted multiple subsidy measures to promote consumption in conjunction with national subsidy policies. National and local authorities have introduced policies combining various measures to promote festival consumption. 1) National subsidy funds are in place in advance. The National Development and Reform Commission issued the first batch of 62.5 billion yuan in super long-term special national bonds to support the consumption and upgrading of old products in 2026 to various regions by the end of 2025. This fund was in place before the Spring Festival. The Ministry of Commerce also required consumers to apply for subsidies through offline channels during the Spring Festival holiday period, ensuring product supply, increasing rural market participation, organizing special promotions, and guiding consumers to experience in-store shopping. 2) Prize-winning invoices play a synergistic incentive role. The Ministry of Commerce, the Ministry of Finance, and the State Administration of Taxation carried out a pilot project of prize-winning invoices in 50 cities, planning to distribute 10 billion yuan in bonus funds during the six-month implementation period, with the bonus scale during the Spring Festival holiday exceeding 1 billion yuan. 3) Subsidies for consumption vouchers release offline traffic. The Ministry of Commerce, in collaboration with nine departments, planned a special "Happy New Year Shopping" event, allocating 20.5 billion yuan in funds in various regions to directly benefit consumers through the distribution of consumption vouchers, subsidies, red envelopes, etc., over a 9-day holiday period. The event mobilizes various offline formats, such as national chambers of commerce, commercial districts, focusing on the full chain of holiday consumption needs such as "eating, living, and transportation," highlighting the policy attributes of convenience for the people. 4) Local innovations in national subsidy processes to enhance channel efficiency. During the Spring Festival in Shanghai, a subsidy application process was innovated for trading in old products by introducing an instant lottery draw and real-time notification in addition to the previous "online registration, biweekly unified lottery draw and result notification" method. Consumers can participate in the instant lottery draw at offline channels and immediately know the result and use the subsidy qualification coupon. The new process accelerates the pace from subsidy application to verification, guiding consumers to consume offline, effectively improving the sales and traffic conversion efficiency of offline channels. Policy combinations ignite the festival consumption boom During the Spring Festival, offline consumption was hot nationwide. According to the data from the Ministry of Commerce, in the first four days of the Spring Festival holiday, the average daily sales of key retail and catering enterprises increased by 8.6% compared to the same period in 2025. Recommended to pay attention to: Gree Electric Appliances, Inc. of Zhuhai, Midea Group Co., Ltd, HAIER SMARTHOME, Hisense Visual Technology, Hisense Home Appliances Group, benefiting from the recovery of offline channels; TCL ELECTRONICS, Zhejiang Biyi Electric Appliance, Appotronics Corporation, benefiting from the improvement in marginal sales of AI glasses. Risk warning: Risk of lower-than-expected demand; Risk of macro-policy changes; Risk of intensified industry competition.