Dataquest Insight: Chinese Government Stimulus Will Drive a 20% Increase in Home Electronics Demand



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The Chinese government extended its home appliance subsidy program nationwide in February 2009. Farmers will receive a 13% subsidy for electronic products purchases; this will likely increase sales of household electronics by 20% in China.

Table of Contents

  • Analysis
    • 45% Month Over Month Growth In the Past Four Months
    • Individual Vendors Confirm Program's Effectiveness
    • The Program Will Drive at Least 20% More Sales in Rural Areas
    • Subsidies Encourage Higher-Value Product Sales
    • Selected Products Mostly From Local Providers
    • Growing Farmer Income Promises Long-Term Potential Demand
  • Background and Context
  • The Impact
  • Conclusion
© 2009 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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