As local home appliance subsidy policies roll out across various regions this year, a noticeable trend of conservatism has emerged in the specific policy measures. Firstly, there has been no broadening of the categories of home appliances eligible for subsidies. Secondly, the issuance of vouchers has not been fully liberalized. This trend is not a result of passive execution at the local level; rather, it reflects a clear strategic shift towards transitioning the home appliance industry from "policy-driven stimulus" to "endogenous growth." Such a move is poised to reshape the market landscape of home appliance categories and drive the entire industry to refocus on its core value: engaging with users.

Written by Hua Xin

With the arrival of February 2026 and the gradual release and implementation of operational details for home appliance subsidy policies nationwide, many home appliance manufacturers find themselves both surprised and under pressure. The surprise stems from the inertial expectations built upon previous policy expansions, while the pressure serves as an early indicator that the industry is about to bid farewell to "reliance on policy dividends" and face market-driven competition head-on.

This year, the operational details of home appliance subsidy policies across the country have generally been conservative, essentially mirroring central policies without significant innovation. This "staying within bounds" approach may seem lacking in initiative, but it actually conveys a clear policy direction: the core mission of subsidies has shifted from "comprehensively stimulating consumption" to "precisely supporting and focusing on core demands." The goal is no longer to fuel short-term market enthusiasm but to foster the long-term healthy development of the industry.

Compared to 2025, although the central government has affirmed the continuation of home appliance subsidy policies this year, the previous two-tier subsidy standards of 20% and 15% have been consolidated into a single 15% subsidy. Additionally, the range of subsidized products has been narrowed down to five major categories of home appliances. This central-level adjustment has set the tone for the year's policies—moving away from "flood-style" subsidies towards "precision irrigation," thereby concentrating limited fiscal resources on core home appliance categories that are most relevant to households and possess the largest existing market.

While the central government has outlined the home appliance subsidy policies for this year, it has delegated the responsibility of formulating implementation details to local governments, granting them sufficient flexibility for adjustments. For instance, local governments have the option to include additional home appliance categories beyond the five major ones specified by the central government (air conditioners, refrigerators, washing machines, televisions, and water heaters). However, upon reviewing the implementation details released by various regions, many home appliance manufacturers have observed that local policies this year are notably conservative and cautious.

The "restraint" evident in local policy details is not a missed opportunity but a rational choice grounded in local development realities and the saturation level of the home appliance market. It aims to prevent inefficient allocation of subsidy funds and shield the industry from reverting to a "policy-dependent growth" model, compelling companies to shift their competitive focus from "vying for policy dividends" to "enhancing product strength."

This conservative strategy is primarily manifested in two aspects: Firstly, local subsidy policy details generally apply only within the five major categories specified by the state, without introducing new home appliance categories. This has directly resulted in a "policy exit" for kitchen appliances such as range hoods, gas stoves, and dishwashers, as well as lifestyle appliances like rice cookers and water purifiers, and cleaning appliances such as floor washers and robot vacuums.

Secondly, there have been two subtle shifts in the focus of local subsidy policies. The issuance of vouchers has become more measured and cautious, with many regions adopting clear planned issuance schedules and rhythms to regulate the frequency and quantity of vouchers, ensuring the sustained utilization of subsidy funds throughout the year. Furthermore, there is a heightened emphasis on offline physical stores and home appliance retail outlets, with many regions imposing regulations on the total volume of vouchers issued through online e-commerce platforms to prevent the previous scenario of unlimited online voucher issuance while offline stores were left wanting.

The underlying rationale behind these two significant changes warrants careful consideration by all home appliance manufacturers. On the one hand, the "policy exit" for categories such as kitchen appliances, lifestyle appliances, and cleaning appliances does not signify that the policy is "abandoning" these categories. Rather, it indicates that these categories have attained sufficient market maturity and endogenous growth momentum, necessitating them to undergo natural selection through full market competition. This compels companies to increase R&D investment, optimize product structures, and reduce reliance on policy dividends. This is not only an inevitable requirement of market laws but also a necessary pathway for upgrading the kitchen and small appliance industry towards branding, intelligence, and green development.

On the other hand, the policy orientation favoring offline physical stores essentially serves as a precise boost for the "revival of physical consumption" and a correct guide for the "integrated online-offline development" of the home appliance industry. In the past, the disorderly issuance of vouchers by online platforms not only disrupted market pricing but also exacerbated the operational challenges faced by offline entities. This year's policy adjustments aim to balance the competitive landscape between online and offline channels, stimulate offline consumption, and drive home appliance sales back to the essence of "experiential consumption." After all, the installation, after-sales service, and scenario-based experiences offered by home appliances remain irreplaceable advantages of offline entities. This will also propel the home appliance industry to transition from "price competition" to "service competition" and "experience competition," fostering a virtuous cycle within the industry ecosystem.

These developments have caught many home appliance manufacturers off guard. Over the past year or so, local home appliance subsidy policies nationwide have generally embraced category expansions and policy broadening, encompassing almost all major and minor home appliance categories, as well as emerging ones, allowing all manufacturers and consumers to partake in the policy dividends of subsidies. At that time, the core objective of the policies was to respond to market fluctuations and stimulate consumption recovery. However, the core objective of today's policies is to guide industrial transformation and cultivate endogenous growth momentum. The shift in policy orientation is bound to reshape the market landscape.

Today, many kitchen and small appliance categories, such as kitchen appliances, lifestyle appliances, and cleaning appliances, have prematurely ended their reliance on policy dividends from subsidies in 2026, triggering an accelerated reshuffling of the operational landscape across the entire home appliance industry. In the short term, this will significantly impact the operations and development of relevant companies in the kitchen and small appliance market, causing performance fluctuations and competitive pressures for many small and medium-sized kitchen appliance and small home appliance enterprises.

Of course, this also enables kitchen and small appliance companies to enter the "policy exit phase" earlier than major home appliance categories, adapting to more direct market-driven competition. This reshuffling, while seemingly harsh, is actually a process of "weeding out the weak" in the home appliance industry, driving resources to concentrate in companies with core technologies, brand advantages, and service capabilities while gradually eliminating inefficient production capacity and homogeneous products, ultimately enhancing the overall competitiveness of the industry.

From the perspective of Home Appliance Circle, this year's adjustments to home appliance subsidy policies from the central to local levels signify that after the initial frenzy and all-encompassing category expansions in the home appliance market, the policies are entering a new phase of "resource focus and concentrated efforts," primarily supporting the renewal of home appliance categories with a significant presence in the existing market. For kitchen and small appliances, it is imperative to promptly restore market-driven competition and upgrades.

Furthermore, the core signal conveyed by this year's adjustments to home appliance subsidies is that the home appliance industry has bid farewell to the era of "policy-driven growth" and entered a new phase of "value-driven growth." The core role of policies is no longer to "provide blood transfusions" but to "stimulate blood production."

Ultimately, this year's adjustments to home appliance subsidy policies and the conservative approach in local policy details serve as a stark reminder to all manufacturers in the home appliance market of two crucial points: Firstly, subsidy policies are merely temporary industrial policies intended to assist the home appliance industry in navigating external turmoil and uncertainties during critical periods of transformation. They are not a "protective charm" for the industry. All home appliance manufacturers must rely on their own strength. Secondly, while subsidy policies may witness a "decline" in the home appliance market this year, their value and role persist for relevant manufacturers. The key lies in how each manufacturer integrates resources and leverages policies to achieve maximum impact with minimal effort.

Looking ahead, this year's "conservatism" in local policies for home appliance subsidies is not a sign of passive restraint but a rational return: returning to the essence of policies, the laws of the market, and the original intent of the industry. For the entire home appliance industry, this may bring short-term pain but, in the long run, represents a pivotal opportunity to break free from path dependency and achieve high-quality development!

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