County-level markets spur recovery with accelerated pace of urbanization

Home appliance production, sales, maintenance and recycling enterprises and e-commerce platforms will be encouraged to set up more outlets and warehouses at county and township levels, according to the guideline.

Traditional home appliances have a comparatively high penetration rate in China, and the current market demand is mostly driven by a desire for renewal and upgrading, said Xu Jianwei, a researcher with the Chinese Academy of Macroeconomic Research.

The life span of home appliances has increased, greatly lengthening the replenishment cycle. New features and functions of household appliances that can increase user experience and quality of life will boost such demand, Xu said.

Intelligence and automation, health awareness, high-quality and big brands are evolving into new consumption trends in the county-level home appliance market, according to a report by retail service provider Suning released in June.

Young people, especially those in county-level regions, are emerging as the driving force for high-end and smart products, said Fan Huaiwei, president of Suning's Retail Cloud, a Suning subsidiary that aims at lower-tier markets in China.

During China's mid-year 618 shopping festival, sales of Dyson hair dryers through the Retail Cloud channel, for instance, climbed 219 percent year-on-year, and sales of large-screen TVs priced over 10,000 yuan surged 480 percent, Fan said.

More development prospects will emerge in this industry as the effects of pro-consumption policies are further brought out, coupled with robust demand in county-level marketplaces, he added.