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Shanghai's Rural Benefit from Electronics Policy

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But Cheng added that she can only afford a few products at a time, since the combined price of big-ticket items was too high.

"Thankfully, the scheme will last for four years. But it looks complicated to get the subsidy, isn't it?" Cheng said.

So far, the average time to get the subsidy rebate after submitting applications has yet to come out, but complaints on lengthy procedures have mounted in other cities and provinces that had pilot programs.

Participating retailers and manufacturers, caution that products allocated to different cities should be varied in accordance with diverse demands and consumption power.

"The prices of products sold in Shanghai should have higher rates to meet the rigid demands of local people and their better living conditions," said Xin Kexia, general manager of Gome's Shanghai branch, suggesting that the price for color TVs, which are presently capped at 3,500 yuan nationwide, can be lifted to 4,500 yuan in Shanghai.

He added that Gome Shanghai has a narrower line of appliances because even the local rural people have better purchasing power than their counterparts elsewhere in the country. And they do not carry appliances that are at the lowest-end.

Zhu Jiagui, deputy general manger of Gome's rival Sunning Appliance, agreed. "The average price of our products sold in Shanghai is 1,600 yuan, 400 yuan higher than the average price we sell across the country."

"The policy could be better if adjusted to different city conditions," he said.

The rebate policy's intentions to boost rural consumption and mitigate weak home appliance makers, is noble. But complaints about the quality and piracy of products and unsatisfactory after sales service has not added to good reviews in cities and counties where the program has already been in force.

The program still needs to be polished before it can materialize its big sales ambition.

(China Daily May 11, 2009)

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