China's consumer electronics market will rise and fall in 2013

According to research by a Chinese researcher at IHS iSuppli Corporation, the implementation and termination of the Chinese government subsidy policy will cause the Chinese consumer electronics market to undergo dramatic ups and downs. It is expected that the main products will have strong growth in the first half of 2013 and will slow down significantly in the second half of the year.

Unit shipments will grow strongly in the first quarter, and the LCD TV and air-conditioning markets are expected to grow by 11.7% and 43.5% respectively. In the second quarter, overall consumer electronics products will record the best growth, with LCD TVs growing by 14.1%, air conditioners by 11.3%, refrigerators by 16.2%, and washing machines by 10.9%. However, starting from the third quarter, the growth rate of all these products will be reduced to a single digit, and in the fourth quarter of 2013, there will be only a modest increase in some markets.

The growth in the first half of the year will come from a one-year government energy-saving product subsidy policy. This policy aims to encourage consumers to purchase certain energy-efficient products. However, this policy will expire in May, after which consumer demand growth will slow down.