Large demand for furniture replacement may lead to a 35% increase in domestic sales of furniture

After the successful completion of the “old-for-new” appliance last year, the business sector has been exploring new ways to stimulate consumption, and finally focused on “pull and housing-related commodity consumption”, and furniture “trade-in” was proposed, and in 2012 Start the pilot. The spokesperson of the Ministry of Commerce said at the regular press conference that the local trade department is now piloting and promoting the policy of replacing the furniture with the old one. The Ministry of Commerce has a positive attitude toward this. If the pilot effect is good, it may be in the country. Promote. After the news came out, some furniture companies smelled the business opportunities and took the lead in renovating the furniture to replace the new one. The reporter learned that home stores including Real Home, Red Star Macalline and other home stores have begun to carry out “old-for-new” activities in Beijing, Tianjin and Shanghai. However, the outlook for most trade-offs for furniture trade-in is unclear and onlookers. Although the current work plan and implementation rules are still in the stage of discussion, the industry insiders said that “furniture replacement for furniture” is likely to continue the policy of replacing old appliances with new ones, or to select enterprises with large scale and high degree of chaining, according to the percentage of product turnover. subsidy. Or can drive domestic sales of furniture by 35%. In 2012, the government report stated that efforts should be made to expand consumer demand, and various “promotional consumption” policies will be introduced in the future. In this regard, the Beijing Municipal Commission of Commerce took the lead in proposing that in 2012, it will explore various projects for the benefit of the people. It is reported that some furniture circulation enterprises have explored the work and details of "furnishing old-for-new" in the store. For example, the home of the family has piloted old-for-new activities in Beijing, Tianjin, Hefei, Chongqing and Shenyang. Consumers who purchase new furniture can hand over the old furniture to the store for recycling. Regardless of the original price of the old furniture and the old and new, it will be deducted at a discount of 5% of the new furniture turnover. Red Star Macalline also opened a “non-replacement of 100 million home subsidy program” in Shanghai and Beijing, and invested 100 million yuan in the first phase to provide cash subsidies for the improvement of sex households. Regarding the policy of replacing the furniture with the old one, the Ministry of Commerce said that if the furniture trade-in policy is only implemented in Beijing, the overall furniture consumption will be less than 0.5%; if it is implemented nationwide, according to the experience of home appliance trade-in, it will be able to pull additional With 15% of end-use consumption, the domestic sales growth rate of furniture will reach 35%. The demand for furniture trade-in is huge. The rapid growth of Chinese residents' income in the past 10 years has led to a compound growth rate of furniture consumption of 27.5%, which is in the middle of growth. The relevant person in charge of the Zhongshan Furniture Chamber of Commerce said that although the growth rate of real estate sales is relatively small for the Chinese furniture industry in the middle of growth, it is predicted that the superimposed effect of low growth rate of real estate sales in 2011-2012 will lower furniture consumption. The growth rate and the old-for-new demand are huge. As a typical export-oriented industry in China, with the global economic downturn in the past two years, domestic furniture production and retail sales have experienced significant declines, and furniture exports have been hit hard. In this context, many furniture companies have to transfer the “main battlefield” to In the domestic market, “domestic sales” has become an important magic weapon for furniture companies to resist the cold current of the industry. “Undoubtedly, furniture trade-in will greatly promote the sales of homes. However, compared with home appliances, furniture trade-in is a much larger project and may face more challenges. In the past, furniture was replaced with new ones. Corporate behavior is relatively fragmented, few, but now through the instigation of business sector policies, this model may be further developed." Industry insiders said. The reporter learned that at present, Zhongshan's furniture enterprises and stores have not yet joined the ranks of furniture trade-in. "With the current trial of some furniture stores in Beijing and other places, Zhongshan draws on the valuable experience of the pilot areas, plus if there are some locals in Zhongshan. Supporting policies, I believe that it will bring new business opportunities to the development of Zhongshan's furniture enterprises," said a person in the furniture industry in Zhongshan City.

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