The long-established furniture trade-in policy has finally made substantial progress. The Beijing Furniture Trade-in Pilot Project has started tendering a few days ago. The tenders include furniture sales enterprises, renewable resource recycling enterprises and waste-free pollution treatment enterprises.
Recently, a reporter from the “First Financial Daily†saw on the website of the Beijing Municipal Finance Bureau that the “Beijing Furniture Trade-in Pilot Project Bidding Announcement†shows that the “Beijing Furniture Trade-in Pilot Project†will be open for tender from September 19, More than 6 furniture sales enterprises, no more than 5 renewable resource recycling enterprises and 1 waste-free pollution-free processing enterprise.
Growth expectations
In March this year, officials from the Ministry of Commerce and the Beijing Municipal Commission of Commerce stated in public that Beijing is currently exploring the "furniture for old" policy, which will be extended to the whole country.
Wang Ke, president of the Guangdong Furniture Association, analyzed the reporter. The key to the successful implementation of the furniture trade-in is how to make the people more affordable and how to effectively reuse the recycled furniture. If this can be solved At two levels, large-scale growth is possible.
The Huatai Securities research report shows that if the furniture trade-in policy is implemented nationwide, based on the experience of home appliance trade-in, an additional 15% of terminal consumption can be driven. According to an additional 10% estimate, then the policy can drive furniture consumption by about five 60 billion yuan.
Some people familiar with the matter expect that the policy will be implemented as early as the end of October, and the subsidy rate will be between 5% and 10% of new products. Although this has not been officially confirmed, many consumers are worried that manufacturers will quietly increase prices by using "trade-in".
Previously, many home furnishing companies have been trying to promote the "trade-in" campaign in different forms. For example, there are home furnishing stores in Beijing that once subsidized 5% of the amount of new furniture purchased by consumers. Old furniture is collected uniformly by the store without any additional cost; and home furnishing stores issue subsidy vouchers ranging from 500 yuan to thousands of yuan. Consumers can use the subsidy voucher to purchase new furniture, which can be directly discounted to cash and so on. Some of the aforementioned companies disclosed that they have already tendered for this project.
However, Wang Ke believes that the previous “new trade-in†subsidy by enterprises alone is of little practical significance. The benefits are not great. "
Recycling problems
An industry source said that this time the government is inviting tenders for recycling companies and disposal companies. Consumers may use furniture for trade-in. The process may be that merchants take away old furniture at the time of delivery and subsidize a certain percentage of the price of new furniture . The old furniture will be remanufactured or dismantled and burned by professional recycling companies and disposal companies.
Wu Yuqi, manager of the marketing department of Shanghai Jisheng Weibang, told reporters that under the circumstances of the entire furniture industry is not prosperous, the "trade-in" policy is a promotion, especially for low-end products may be more stimulating, but there are also some problems.
For example, what is used as a certificate for recycling is very different from the home appliance industry. Wu Yuqi told reporters that Jisheng Weibang had also carried out trade-in activities, but the recovered items were almost worthless, "helping consumers deal with some garbage." In addition, there are also great operational difficulties in subsidizing prices. There are particularly many enterprises in the furniture industry. Unlike the home appliance industry, there is a big problem in how to set the subsidy price and the standard.
Wang Ke also said that if he wants to promote the "trade-in" policy on a large scale, the first thing to do is to solve the problem of where to put the recovered furniture and how big the warehouse is to put it, because the problem will be very serious after a certain amount is stacked in the warehouse. For treasures, how can the old things that are exchanged have the possibility of secondary effects, and how can they be better used again.
"Furniture has been replaced by no one dare to touch it in the past. The key problem lies in the aspect of recycling. Furniture recycling is completely thrown away from the inherent waste recycling system. Its recycling value is too low, taking up too much space, and a waste recycling station is on top. 10 to 20 square meters more. "Wang Ke believes that household appliances make use of the existing waste recycling system and repair system. Repair and secondary sales through recycling can produce a good secondary effect.
Cummins Parts,Cummins Spare Parts,Cummins Performance Parts,Original Cummins Parts
JINING SHANTE SONGZHENG CONSTRUCTION MACHINERY CO.LTD , https://www.stszcmparts.com