Recently, the executive meeting of the State Council clearly proposed to promote the consumption of home appliances and furniture——

  Great business opportunities for home appliances "trade-in"

  Zhou Lei, reporter of Economic Daily and China Economic Net

  The recent executive meeting of the State Council clearly stated that it is necessary to promote the consumption of home appliances and furniture.

Encourage qualified areas to subsidize the elimination of old home appliances and furniture and purchase of green smart home appliances and environmentally friendly furniture.

Home appliances "trade-in" ushered in favorable policies.

According to the "Safety Service Life of Household Appliances" standard, there are currently a large number of household appliances in my country that have exceeded the 10-year safe service life, which is in urgent need of replacement.

At present, major appliance manufacturers and platforms have launched "optional actions" to seize business opportunities in the "old-for-new" market for home appliances.

  Home appliances "trade-in" ushered in favorable policies.

The recent executive meeting of the State Council clearly stated that it is necessary to promote the consumption of home appliances and furniture.

Encourage qualified areas to subsidize the elimination of old home appliances and furniture and purchase of green smart home appliances and environmentally friendly furniture.

  "The state's introduction of the key commodity consumption promotion policy this time is something that home appliance companies generally look forward to. It can promote the implementation of home appliances'replacement of old for new', expand market demand, and enhance industry development confidence." Jiang Feng, executive director of China Household Electrical Appliances Association, told Economic Daily The reporter said that it is expected that the places where conditions permit will respond to the policy to give subsidies to carry out "replacement of old appliances".

At the same time, he also hopes that all parts of the country will actively promote the "Safety Life of Household Appliances" standard, take measures to support the recycling and disposal of old household appliances, and further create a good environment for promoting the consumption of household appliances.

  A large number of home appliances have ultra-safe service life

  my country's home appliance market has now entered a stage where it mainly meets the needs of updated consumer.

Previously, in response to the impact of the international financial crisis in 2008, my country had introduced a series of policies such as "home appliances to the countryside" and "replacement of old for new" policies to stimulate market demand in the form of subsidies and significantly promote the popular consumption of home appliances.

Today, most of these appliances have reached the time when they need to be updated.

  Data shows that in 2018, the social ownership of my country's main home appliances are: 440 million refrigerators, 430 million washing machines, 520 million air conditioners, 370 million water heaters, and 250 million range hoods.

Among them, a large number of household appliances that have been used for more than 10 years or more are still in service.

  According to the association group standards of the "Safety Life of Household Appliances" series published earlier this year, the safe use of refrigerators, air conditioners, washing machines, range hoods, gas stoves, electric water heaters and other products should not exceed 10 years.

According to the calculations of the China Household Electrical Appliances Association, in 2020 alone, it is estimated that another 160 million household electrical appliances in my country will reach the safe service life limit.

  The "trade-in" of home appliances is regarded as a bonanza by the industry.

In the last round of home appliances "trade-in", 92.48 million new home appliances were sold nationwide, directly driving home appliance consumption to more than 342 billion yuan.

This year, the home appliance market has been greatly affected by the new crown pneumonia epidemic. The country promptly launched targeted measures to promote consumption, which injected impetus into the home appliance market.

  In May of this year, the National Development and Reform Commission and other 7 departments jointly issued the "Implementation Plan on Improving the Recycling and Treatment System of Waste Home Appliances to Promote the Renewal of Home Appliances.

Shandong, a large home appliance production and consumption province, is one step ahead as a pilot province. Its task is to establish a system that effectively promotes the standardized recycling and treatment of waste home appliances, promotes a virtuous cycle of renewal consumption, explores the formation of replicable and popularized typical experiences, and improves the recycling and treatment of waste home appliances throughout the country. System, promote the renewal of consumption of home appliances, and cultivate new growth points of consumption to provide reference.

  According to the pilot target, Shandong Province will achieve a 10% increase in the scale of the standardized recycling and disposal of waste "four machines and one brain" by the end of this year, reaching 5.7 million units; the "replacement of old" will directly drive the consumption of household appliances to more than 8 billion yuan.

By 2022, a complete recycling system for waste home appliances will be established. The scale of standardized recycling and treatment of "four machines and one brain" will increase by 35% to more than 7 million units; the annual consumption of home appliances will be more than 15 billion yuan through "trade-in".

  Manufacturers launch "optional actions" to seize business opportunities

  From an enterprise perspective, major appliance manufacturers have carefully planned and recently launched "optional actions" to seize business opportunities in the "old-for-new" market for home appliances.

On November 23, Suning.com announced that it will launch the green home appliances and home improvement activities that will last until the Spring Festival next year.

Consumption subsidies are implemented for the category of green smart home appliances, mainly focusing on the renewal consumption of old home appliances during the safe use period.

In addition, Suning.com will strengthen the trading of second-hand home appliances on the platform, improve regional localized collection services, and form alliances with home appliance recycling and second-hand home appliance distributors.

  "The number of Suning.com's'old-for-new' users has grown rapidly. Only during the'Double 11' period this year, home appliances''old-for-new' orders have increased by 147% year-on-year." He Xiaowei, president of the 3C industry line of Suning's open platform operation group, pointed out that in addition to subsidies , Users value the platform’s free on-site disassembly, free removal, free installation and other intimate services, and the resolution of worries will help stimulate users’ enthusiasm for new ones.

  According to Li Junwei, director of the refrigerator sales department of Midea Group, Midea has established a wide range of outlets from the provincial capital to the county and township level.

From May to August this year, Midea refrigerators carried out 4,154 renewal activities with the theme of "renewal storm", selling 95,000 units, with a sales amount of 327 million yuan.

From November 1, 2020 to January 31, 2021, Midea’s air conditioners, refrigerators, and washing machines also jointly launched a “travel in China” campaign, mainly in counties and towns to carry out “replacement of old” and give consumers 100 to 300 yuan subsidies stand by.

  In addition to increasing sales promotion in the form of subsidies, key home appliance companies are focusing on improving product competitiveness, striving to break through the red sea of ​​homogenized competition, and stimulate market renewal demands through technological leadership and innovative supply.

  “Currently, the color TV update cycle is still 9 years, and the market situation is seriously out of touch with consumption upgrades and the improvement of residents’ quality of life. In the first three quarters of this year, affected by the epidemic, the overall color TV market has declined significantly, and laser TVs have become the only one to maintain positive growth. TV categories.” said Gao Yuling, general manager of Hisense Laser Display.

  Aowei cloud network pushes total data to show that the compound growth rate of laser TV from 2015 to 2020 will reach 213.8%.

Gao Yuling emphasized that “to stimulate consumer demand, there must be products that really touch users to'replace the old with the new'.”