Furniture "trade-in" policy details

A few days ago, some media reported that the Beijing furniture trade-in policy is expected to be officially introduced on July 1.

In order to confirm the accuracy of the news, the reporter interviewed Zhang Zhigang of the Beijing Municipal Commission of Commerce and Services and the Media Office of the Beijing Municipal Commission of Commerce. The response was “The news is unfounded and the policy has been under development. At present, there is no specific claim. The time of introduction." Although the Municipal Commercial Committee did not confirm it positively, it did not deny it. The reporter then interviewed the person in charge of several home stores in Beijing, and the news got the default.

An industry insider who participated in several "trade-in" work conferences of the city's commercial committee revealed to reporters that Beijing's "furnishing old-for-new furniture" has been determined to be recycled and implemented by the store. The subsidy will be divided into three phases, and the “old-for-new” model is currently the most promising model.

Detail 1: "Clear price" is a prerequisite

The data shows that at present, more than 1 million sets of old furniture are eliminated every year in Beijing. If calculated at the average price of 3,000 yuan per set, "furniture for furniture" will drive new consumption of about 3 billion yuan each year. In the overall downturn of the market, major home stores are hoping to take a slice of the "furniture for furniture." According to informed sources, the store has to participate in the "old-for-new" of furniture, and the implementation of "clear price" is a major prerequisite.

Li Weiwei, deputy director of the Beijing Municipal Commission of Commerce, said in an interview with the media that one of the difficulties in “old-for-new” is how to subsidize, and the key point of subsidy is how to define the value of furniture. In this regard, the Beijing Municipal Commission of Commerce has conducted a number of discussions on this, and believes that the implementation of the "clear price" can guarantee that the "old-for-new" policy will truly benefit consumers. The industry pointed out that the implementation of the "clear price", the amount of subsidies in the old-for-new can also be quantified.

As early as March when the actual home launched "clear price", Jimei, the president of Jimei Home, and the general manager of Lan Jingli, Yin Bo, did not agree with the "clear price", and more inclined to "clear price." Recently, the reporter learned that in order to grasp the business opportunities in the "old-for-new" policy, Lan Jingli and Jimei Home have begun an emergency adjustment pricing management system. It is expected that the "clear price" will be fully implemented in July.

However, the reporter learned that the city outside the city, Red Star Macalline, which has been piloting the “old-for-new”, has not launched “clear price”. According to Wang Wei, general manager of Hongxing Meikailong Jinghu·Southwest Region, the policy of “trade-in” has not been announced. “The content of the discussion and the content to be done are two concepts”. Wang Wei told reporters that a large part of Red Star's products are clearly priced, and Red Star has been implementing the "City Compensation" service.

Detail 2: Subsidy in three stages

As a major difficulty in the trade-in of furniture, the “subsidy method” has always been one of the focuses of the “old-for-new” policy of furniture. According to industry sources, the current Municipal Commercial Committee has basically determined that furniture “trade-in” is divided into three stages for subsidies.

The first stage, the recycling of old furniture. According to insiders, the store is responsible for recycling old furniture, and the government will distribute the subsidies to the store, and then subsidize them to the consumers. Consumers who participate in “trade-in” will receive a 5% subsidy, which is 5% of the transaction price for new furniture purchased by consumers.

The second stage is the dismantling and transportation. According to informed sources, the old furniture recovered from consumers is divided into two types, one is for secondary use and the other is for secondary use. For those who do not use the value, the company needs to be responsible for dismantling it and then processing it. In view of the workload of transportation and dismantling generated at this link, the government considers granting certain subsidies. As for the amount of subsidies, it has not yet been determined.

The third stage, the stage of consumption. According to the transparency of the insiders, for those hazardous waste products that have not been used after dismantling, environmental protection needs to be handled, and the government will provide certain subsidies for this link. It is understood that the only enterprise in Beijing that has the qualification for hazardous waste disposal is a waste incineration plant owned by Jinyu.

Detail 3: The actual home model may become a blueprint for policy

The reporter understands that at present, Beijing's pilot furniture “old-for-new” enterprises have their own homes, Red Star Macalline, Jimei Home, Outer City, and Lan Jingli. The reporter conducted a survey on the “old-for-new” model of the five companies and found that none of them had the same model.

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