China's New National Subsidy Policy Heats Up the Home Appliance and Digital Market: Xiaomi Emerges as the Biggest Winner with its Cost-Effective Strategy

China's New National Subsidy Policy Heats Up the Home Appliance and Digital Market: Xiaomi Emerges as the Biggest Winner with its Cost-Effective StrategyThe Ministry of Commerce revealed that as of March 16th, over 1.32 million applications for the national trade-in program for automobiles had been received, while sales of trade-in home appliances exceeded 26 million units

China's New National Subsidy Policy Heats Up the Home Appliance and Digital Market: Xiaomi Emerges as the Biggest Winner with its Cost-Effective Strategy

The Ministry of Commerce revealed that as of March 16th, over 1.32 million applications for the national trade-in program for automobiles had been received, while sales of trade-in home appliances exceeded 26 million units. Furthermore, over 41 million consumers applied for subsidies on 51 million mobile phones and other digital products. This new national subsidy policy ("New National Subsidy" or "New Guo Bu") includes mobile phones, tablets, and smartwatches (smart bands) for the first time, offering substantial discounts to consumers. Products like mobile phones, tablets, and smartwatches priced under 6,000 yuan are eligible for a 15% subsidy, with a maximum of 500 yuan per person, limited to one claim per individual.

This policy not only covers most newly launched phone models but also significantly enhances the cost-effectiveness of mainstream phones, providing consumers with more choices. Xiaomi has undoubtedly benefited the most from this policy. According to industry data, Xiaomi's market attention rose from approximately 21.6% in December 2024 to a staggering 60.9% in January 2025 a nearly threefold increase. This significant surge in attention is directly attributed to the improved cost-effectiveness of Xiaomi phones under the New National Subsidy policy.

Since October 2024, Xiaomi has launched several flagship phones, including the Xiaomi 15 series, Redmi K80 series, and Redmi Turbo 4. These phones are already known for their affordability, and the added national subsidy makes their price advantage even more pronounced. For example, the Redmi K80, originally priced at 2499 yuan, dropped to 2124.15 yuan after the subsidy, successfully entering the 2000 yuan price bracket and breaking through a key psychological price point for consumers. The Xiaomi 15 standard version's starting price also fell to 3999 yuan with the subsidy, returning to the price level of the Xiaomi 14.

Wang Teng, General Manager of Redmi brand, commented that while many brands participated in the New National Subsidy program, Xiaomi's growth was significantly more substantial. He attributes this to Xiaomi's consistent commitment to a high cost-performance strategy and its unique online-offline same-price model. This strategy ensures consumers truly benefit from the government subsidy. Xiaomi's success lies not only in its product competitiveness but also in its accurate grasp of market demand and policy opportunities. By perfectly combining high cost-effectiveness with the national subsidy policy, Xiaomi has successfully attracted more consumers, enhancing its brand influence and securing a favorable position in the market competition.

The New National Subsidy policy has undoubtedly injected a strong stimulant into the home appliance and digital industry. Data shows that as of March 16th, over 1.32 million applications for automobile trade-ins were received, demonstrating the policy's effectiveness and the market's positive response. The sales of trade-in home appliances exceeding 26 million units further confirms the policy's positive impact on stimulating consumption. Over 41 million consumers applying for subsidies on 51 million mobile phones and digital products showcases the public's enthusiasm for the New National Subsidy. This policy benefits consumers and provides new development opportunities for home appliance and digital companies. Businesses need to seize this opportunity, continuously improve product competitiveness, and meet the growing needs of consumers.

Notably, the New National Subsidy policy has a wide coverage, encompassing mobile phones, tablets, and smartwatches (smart bands). Products priced under 6000 yuan are eligible for a 15% subsidy, up to a maximum of 500 yuan. This policy design considers the needs of different consumer groups, benefiting both ordinary consumers and promoting high-end product sales. The one-subsidy-per-person rule prevents policy abuse, ensuring fairness and effectiveness. The implementation of the New National Subsidy policy has not only stimulated consumer demand but also promoted industrial upgrading. Guided by the policy, companies place more emphasis on technological innovation and product development, thereby improving product quality and competitiveness.

Xiaomi's success story provides a valuable reference for other companies. In fierce market competition, high cost-effectiveness remains a key factor in product success. Xiaomi's online-offline same-price model further solidifies its price advantage, providing consumers with tangible benefits. This honest business model has earned consumer trust and reputation, laying a solid foundation for its long-term development. Beyond cost-effectiveness, Xiaomi's success also stems from its strong R&D capabilities and marketing prowess. Its continuous product launches and precise market positioning provide strong support for its dominant market position.

In conclusion, the implementation of the New National Subsidy policy has had a positive impact on the home appliance and digital market, driving consumption upgrades and promoting industrial development. Xiaomi's success story offers valuable experience for other companies. For future development, companies need to continue improving product competitiveness and seizing market opportunities to achieve sustainable growth. The successful implementation of the New National Subsidy policy also provides valuable experience for the government in macroeconomic regulation and future policymaking. Precise policy guidance can effectively stimulate consumption, drive economic growth, and promote social development. With the continued implementation of the New National Subsidy policy, the home appliance and digital market is expected to experience even more vigorous development, offering consumers greater benefits and the convenience of technological advancement.

The success of the New National Subsidy policy also relies on the effective organization and coordination of government departments. Government departments have made positive efforts in policy formulation, publicity, and supervision to ensure the smooth implementation and positive results of the policy. In the future, government departments need to continue strengthening policy enforcement, promptly responding to market changes, and creating a better environment for the development of the home appliance and digital industry. They also need to strengthen the supervision of corporate behavior, maintain market order, and ensure the fairness and effectiveness of the policy. Only through the joint efforts of the government, enterprises, and consumers can the New National Subsidy policy play a greater role in promoting the sustainable and healthy development of the home appliance and digital industry. The successful experience of the New National Subsidy policy is also worthy of reference and learning by other industries, providing new ideas and methods for promoting economic development.