One-third of rural families have an annual income of over 20,000 yuan, with those earning an annual income ranging from 5,000 to 20,000 yuan accounting for 40 percent of the total, the latest Rural Household Appliances Consumption survey conducted by Suning and a Beijing-based research company has revealed.

Work on the survey was initiated last December, and is based on research among 15,000 rural residents from the 10 provinces where the electric appliance rebate program was initiated in late 2007.

According to the report, the four traditional electric appliances categories that enjoy the highest penetration ratio in rural areas are televisions, refrigerators, washing machines and kitchen appliances since these were usually bought three to five years ago, and have become outdated or dysfunctional.

Hi-tech categories like flat screen televisions, air conditioners, computers and other digital appliances, which are still new to rural consumers, are the new targets for purchases. "The survey is a positive signal and will help us to better develop the market," said Sun.

He said Suning's biggest concern right now was how to provide economical and practical appliances through partnerships with suppliers and how to improve the logistics so that rural consumers get what they want faster.

(China Daily March 24, 2009)