According to the website of the Ministry of Commerce, the Ministry of Commerce and other 7 departments recently issued a notice on several measures to promote household consumption (hereinafter referred to as the "notice"). The notice mentions that financial institutions are encouraged to strengthen credit support for household consumption under the premise of legal compliance and controllable risks, reasonably determine loan interest rates and repayment periods, optimize approval processes, improve financial services, and promote online real-time processing.
Encourage financial institutions to strengthen cooperation with home furnishing manufacturers, home furnishing stores, home improvement enterprises, etc., to provide financing support for merchants and upstream and downstream enterprises in the supply chain. Support eligible commercial outlets such as home furnishing stores to issue real estate investment trusts (REITs) in the infrastructure sector. Continue to support residents of old urban communities to withdraw housing provident funds for the renovation of self-occupied housing such as installing elevators, and expand the scope of policy support to the installation of elevators and other renovations in their own houses and those of their spouses' parents.
The full text of the notice is as follows:
Notice of 13 departments, including the Ministry of Commerce, on several measures to promote household consumption
The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps:
Home consumption covers home appliances, furniture, home textiles, home decoration and other fields, is an important part of residents' consumption, and is a direct embodiment of people's needs for a better life. In order to implement the decision-making and deployment of the Party Central Committee and the State Council, release the potential of household consumption, consolidate the momentum of consumption recovery and development, and enhance the basic role of consumption in economic development, with the consent of the State Council, the relevant matters are hereby notified as follows:
First, vigorously improve the quality of supply
(1) Improve the green supply chain. Support home furnishing enterprises to carry out green manufacturing, encourage areas with the capacity to introduce targeted policies and measures for green manufacturing demonstration enterprises, and promote enterprises to increase the research and development of green household products. Strengthen the quality and brand building of green home products. Improve the unified green product standards, certification and labeling system, and expand the scope of green household product certification. Encourage qualified areas to support residents in purchasing green household products such as green home appliances, green furniture, and green building materials. Support home furnishing stores to create green shopping malls and set up green product sales areas. Vigorously develop green home decoration and prefabricated decoration.
(2) Innovation to cultivate intelligent consumption. Support enterprises to use technologies such as the Internet of Things, cloud computing, and artificial intelligence to accelerate the research and development of home products such as smart home appliances, smart security, smart lighting, smart sleep, smart health care, and smart audio and video entertainment. Give full play to the role of big data on consumer platforms to support enterprises to carry out reverse customization, personalized design and flexible production of household products. Promote the interconnection of smart home devices, establish and improve the standard system, and promote the development of single-product intelligence to whole-house intelligence. Carry out pilot projects for digital home construction.
(3) Improve the level of home ageing. Formulate and publish a product promotion catalogue for elderly products, and accelerate the formulation of general standards for age-appropriate design of household products. Support enterprises to increase the research and development of household products such as age-appropriate home appliances, furniture, and bath devices. Support the installation of video care systems in the homes of the elderly, and configure home health monitoring equipment such as oximeters, blood pressure monitors, and blood glucose meters. Support home furnishing stores and e-commerce platforms to set up special counters for the sales of elderly products. Support business entities in decoration and other fields to expand home aging renovation business.
2. Actively innovate consumption scenarios
(4) Promote the innovation and development of business models. Support home furnishing enterprises to accelerate digitalization, intelligent transformation and upgrading, and online and offline integration development, and cultivate a number of leading enterprises in the home furnishing industry with efficient coordination of industrial chain and supply chain. Encourage enterprises to build online home furnishing service platforms to promote the healthy and orderly development of new formats and models such as "Internet + home improvement", "Internet + second-hand home", home appliances and furniture leasing. Encourage the orderly development of the second-hand home furnishing circulation industry in areas with conditions. Support home furnishing stores to strengthen cooperation with upstream and downstream enterprises, build a "big home" ecosystem, and provide consumers with one-stop, integrated, and full-scenario home consumption solutions. Support home stores, shopping malls, etc. to set up experiential consumption scenarios such as smart home experience halls and quality home life halls, and explore the integrated development of home retail, entertainment and leisure, creative design and other formats.
(5) Support the decoration of old houses. Encourage all localities to combine the renovation of old urban communities and other work, through government support, enterprise promotion and other means, to support residents to carry out the decoration of old houses and local upgrades. Encourage enterprises to carry out old house renovation design competitions, display excellent cases of upgrading and renovation, create model rooms for old house decoration and partial renovation, and launch affordable product and service packages to meet diversified consumer needs.
(6) Carry out activities to promote consumption. Organize and carry out home renovation activities, encourage areas with the conditions to introduce targeted policies and measures, guide enterprises to improve the quality and level of home consumption supply, provide more high-quality, personalized and customized home products, increase preferential treatment, and support residents to replace or purchase new green smart home products and carry out old house decoration. Support all localities and relevant industry associations to rely on platforms such as the National Consumption Promotion Month and the International Consumption Season to organize and carry out consumption promotion activities such as the Home Consumption Season, the Home Textile Consumption Festival, and the Home Improvement Consumption Festival. Make good use of exhibition platforms such as the China International Import Expo and the China International Consumer Goods Expo, support the holding of professional exhibitions in the field of home furnishing in a market-oriented manner, display cutting-edge technologies and products in the field of home furnishing, and expand the supply of high-quality household products.
3. Effectively improve consumption conditions
(7) Develop community convenience services. Promote the construction of a quarter-hour convenient living circle, and support washing and dyeing shops, maintenance points, and renewable resource recycling points closely related to household consumption into the community. Encourage residential communities with the capacity to use vacant houses to set up temporary storage places for home appliances and furniture to facilitate residents to carry out decorations. Encourage housekeeping enterprises and home appliance service enterprises to enter the community and expand business such as household cleaning and home appliance repair and maintenance.
(8) Improve the recycling network of waste materials. Coordinate existing funding channels and strengthen support for key projects in the construction of waste material recycling systems. Promote the standardized setting of waste furniture and decoration garbage drop-off points in residential areas, and promote online appointment collection and transportation. Improve the recycling system of waste textiles. Encourage recycling enterprises to establish long-term cooperation mechanisms with property enterprises and other units, support enterprises to collect waste home appliances and furniture at home, and facilitate the entry of waste material recycling vehicles into the community.
(9) Promote rural household consumption. Continue to promote the construction of the county commercial system, guide home furnishing enterprises and e-commerce platforms to sink into the rural market, optimize the county circulation network and channels, increase the supply of marketable home furnishing products, and improve the level of after-sales service. Improve the three-level logistics and distribution system in counties and villages, and develop intensive distribution. Carry out in-depth activities to send green building materials to the countryside, further expand the scope of pilot areas, and areas with conditions should provide appropriate subsidies or loan discounts for the consumption of green building materials. Encourage areas with the capacity to carry out home appliances, furniture and home decoration to the countryside, and support rural residents to purchase green smart home products and carry out home decoration in accordance with local conditions.
Fourth, focus on optimizing the consumption environment
(10) Regulate market order. Improve home decoration standards and specifications, and deeply implement the "leader" system of enterprise standards in the home furnishing industry. Crack down on counterfeiting, cutting corners, price gouging and other behaviors in the field of household consumption in accordance with the law. Complete credit evaluation systems for the home furnishing industry, popularize typical cases of creditworthy operations, encourage industry associations, and so forth to explore the implementation of a "blacklist" system for the home furnishing industry, and guide market entities to operate in good faith. Guide home improvement enterprises to strengthen the training of employees, organize employees to actively participate in vocational skills competitions, and improve service quality.
(11) Strengthen policy support. Financial institutions are encouraged to strengthen credit support for household consumption under the premise of legal compliance and controllable risks, reasonably determine loan interest rates and repayment periods, optimize approval processes, improve financial services, and promote online real-time processing. Encourage financial institutions to strengthen cooperation with home furnishing manufacturers, home furnishing stores, home improvement enterprises, etc., to provide financing support for merchants and upstream and downstream enterprises in the supply chain. Support eligible commercial outlets such as home furnishing stores to issue real estate investment trusts (REITs) in the infrastructure sector. Continue to support residents of old urban communities to withdraw housing provident funds for the renovation of self-occupied housing such as installing elevators, and expand the scope of policy support to the installation of elevators and other renovations in their own houses and those of their spouses' parents.
All localities should effectively strengthen organizational leadership, combine the actual conditions of their regions, formulate specific implementation plans, refine work measures, summarize and promote typical experiences, strengthen publicity and guidance, fully mobilize the enthusiasm of neighborhood committees, communities and other grassroots organizations, further stimulate the vitality of various market entities, enhance residents' willingness to consume, and release the potential of household consumption. The competent departments of commerce should strengthen coordination and linkage with relevant departments to promote the implementation of various policies and measures as soon as possible.
National Development and Reform Commission
Ministry of Industry and Information Technology
Ministry of Human Resources and Social Security
Department of Natural Resources
Ministry of Housing and Urban-Rural Development
Ministry of Agriculture and Rural Affairs
People's Bank of China
State Administration for Market Regulation
State Administration of Financial Supervision
China Securities Regulatory Commission
July 2023, 7