A few days ago, on the basis of the successful implementation of the “trade-in†of home appliances, Beijing has also studied the proposed new policy to boost consumption growth. On February 3, 2012, at the Beijing Business Work Conference, it was proposed that the policy of "exchanging old for new" furniture will be implemented in Beijing during the year.
Although the current work plan and implementation rules are still in the discussion stage, the relevant person in charge of the Commerce Committee revealed that "furniture replacement" is likely to continue the policy of home appliances replacement, or will choose large-scale and highly chained enterprises. Subsidies are provided in accordance with the percentage of product turnover.
Long before the Beijing Municipal Commission of Commerce planned to introduce the “furniture-for-new†policy, there were already “Home-for-New†activities at home stores such as Home, Red Star Macalline and others. In this regard, industry insiders also said that although furniture "replaces old" benefits the country and the people, it must also operate in accordance with the "market-oriented" and "human-oriented" ideas to form long-term benefits.
"Furniture for the old" policy is now dawning
It is not unfamiliar to mention furniture "trade-in" in the home furnishing industry, because as early as 2011, home distribution companies such as Home and Red Star Macalline spontaneously launched a series of trade-in activities, and won a lot of calls.
On March 13, 2011, Red Star Macalline held a press conference on the "non-exchangeable RMB 100 million home subsidy program", announcing the initial investment of RMB 100 million to provide cash subsidies for consumers of improved home furnishing. According to Wang Wei, general manager of Red Star Macalline Beijing-Shanghai · Southwest Region, many people's home furniture styles and functions can no longer meet the current needs, resulting in a huge demand for improved decoration. The high level of attention that Red Star has received since the launch of the event a year has also proved this assertion that more than 10,000 consumers in Shanghai alone have participated and benefited from it.
There are also companies that spontaneously launch "furniture for new". In September and November 2011, the home actually launched the "furniture for new" activity twice. It is understood that in the first "trade-in" campaign, more than 3,000 consumers participated in just one month, and more than 2,000 pieces of furniture were recycled, with cumulative sales exceeding 30 million. Ren Cheng, the vice president of Real House, told reporters that the launch of the “new for the old†is a direct manifestation of the improvement of the service of the actual house. It also solves the difficult problems of old furniture for old customers; on the other hand, it is also leading merchants to actively respond to the real estate market regulation The negative impact of sales to effectively drive sales.
In addition, many merchants said in an interview with reporters that the “trade-in†campaign launched by Red Star was very obvious for driving sales, and stabilized business confidence while gaining new business opportunities. At the same time, many beneficiary consumers also expressed to reporters the pursuit of the "trade-in" campaign in anticipation of the early implementation of the new policy.
Home stores or increase the intensity of corporate promotion
Among the many appeals, the furniture "trade-in" policy came into being. The news received great attention and discussion in the industry. Different from the previous “furniture replacement†independently carried out by the home furnishing stores, this time the “replacement furniture†will be arranged by the government department, and it has also been welcomed by many brand furniture companies. The reporter was informed in an interview that some brand stores and furniture companies are actively considering cooperation and participation; of course, some companies have indicated that they will wait for the policy details to be introduced before making plans.
Wang Wei, general manager of Red Star Macalline Beijing, Shanghai and Southwest Region, said that Beijing will replace the old furniture with new ones. The Red Star has communicated with the Beijing Municipal Commission of Commerce for the first time, and the previous practical experience of Red Star and the future The plan reported to the Municipal Commercial Committee. Wang Wei told reporters that in the future Red Star will actively cooperate with relevant departments and participate in the whole process of "exchanging old for new". It is understood that in 2012 Red Star will continue to upgrade the "furniture for old" subsidy program, and focus on promotion in Shanghai, which specifically includes "subsidies for consumers", "professional team home service", "guidance on the use of furniture safety" and Four major projects: "Professional guidance on the disposal of old furniture".
Ren Cheng, the vice president of the home, also said that promoting the “trade-in†from the government level is more powerful than the enterprise, which will have a great effect on improving the operating conditions of the industry. Actually, he will actively respond to the government's call to carry out the work of "swapping the old for new". The reporter was also informed that the home is actually constructing a dismantling workshop of nearly 6,000 square meters, and plans to introduce old furniture with reuse value to the second-hand trading market, and products that cannot be reused will be dismantled into large core boards and fiberboards in the workshop. , Hardware, glass, iron products and other categories, and then separate them to professional recycling companies for processing, so that old furniture becomes waste.
In an interview with reporters, Yin Yuxin, deputy general manager of Dongfang Jiayuan, said from the past experience and the current market situation, "furniture for the old" is nothing more than to provide a statement for corporate promotion, and can not cause substantial benefits. Moreover, the operation of "furniture-for-new" is very complicated, so wait for the specific details of the policy to be issued before considering whether to join the "trade-in for new". The reporter was informed in an interview that there are not a few companies with the same attitude.
Wang Xiaobing, vice president of decoration at present, told reporters that the replacement of old furniture with new furniture will moderately increase the sales of furniture in large stores and brands. Because it involves government policy actions, it is estimated that only large stores and a few brands have obtained the corresponding qualifications. In exchange for old ones, the mid- and low-end consumer groups will have a higher level of responsiveness, and this part of the group is the mainstream consumer, so the corresponding mid- and low-end positioning brands will benefit, at least to reduce their customer diversion. However, this cannot fundamentally solve the problem, and sales must rely on products, prices, services, sales channels, and sales strategies.
The industry calls for market-oriented operation of furniture for trade-in
Undoubtedly, the furniture trade-in has a great impetus for driving home sales and improving the home environment. However, it is undeniable that furniture "replace old with new" is also a huge project, there are many challenges to deal with this matter.
The industry pointed out that due to the wide variety of furniture and different materials, this directly leads to the complexity and difficulty of the "trade-in" operation of furniture. First of all, the question of the selection of pilot enterprises, what kind of enterprises can bear the responsibility of "swapping old for new"; secondly, the question of subsidy, how to replace new furniture with different materials, how to subsidize, how much subsidy, and who will pay the cost of subsidies? Third, the disposal of recycled old furniture. Is the recycled furniture reused, how to use it, and by whom? What if it cannot be reused? Fourth, the valuation of old furniture, how to estimate the price of old furniture with different materials, styles and years? and many more. A series of problems have become a problem that puzzles furniture companies.
In this regard, Zhu Changling, chairman of the China Furniture Association, pointed out that the crux of all problems lies in whether the policies are meticulous and implemented. Zhu Changling said that if we want to "replace old with new" to become a long-term means, we must implement it in accordance with the market economy. This also requires relevant departments to adopt an "open, fair and just" attitude and try to avoid "thunderous noise and small raindrops" .
Zhang Chuanxi, executive chairman of the National Chamber of Commerce and Industry's Furniture Decoration Industry Chamber of Commerce, said that the key to the difficulty of furniture trade-in is to find a way for old furniture, rather than using "trade-in" as a means of promotion, otherwise it will only shorten the service life of old furniture, resulting in The waste of resources is not beneficial to the entire society. Zhang Chuanxi pointed out that the recycling and utilization of old furniture is best solved in accordance with market laws.
Yu Xiusu, president of the Beijing Furniture Association, also pointed out that the difficulty of "replacing old with new furniture" is that there is no smooth processing channel for recycled furniture. Yu Xiusu told reporters that there is currently no professional mature enterprise dealing with old furniture in China, and this company cannot be established by its own efforts, so the government is urgently needed to provide support.
In the view of Red Star Macalline Wang Wei, "trade-in" needs to be cut from the perspective of marketization and humanity in order to operate effectively. Wang Wei analyzed that in the processing of old furniture, a series of issues such as environmental protection, consumer sentiment, product value evaluation, and property rights transfer should be considered. This requires the establishment of a system of value assessment and property rights transfer regulations, and also requires the pilot enterprises to be fair, just and open during the implementation process.
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