Furniture "trade-in" policy is waiting for the problem

Old furniture throws away waste, does not throw and occupy the place. If old furniture can't be handled, new furniture is naturally difficult to buy. How to deal with old furniture has become a difficult problem in furniture promotion. In 2012, the Beijing Municipal Commission of Commerce's working conference sent a message that after the end of the “old-for-new” work of home appliances at the end of last year, this year, we will explore the work of “trade-in” for furniture. Although the idea is still in the suggestion stage, it has caused widespread concern in the home store, and already has a home enterprise that first eats “crab”. Actually, the home of Hongxing Meikailong Jimei Home has tried to replace it with water in the past year. Seize the market before the introduction.

Store test water performance is good

"I heard that buying furniture can be replaced with old ones. Just when the family wants to change furniture, they will come and see." Recently, the reporter went to the Jinyuan store in Beijing’s home, a 40-year-old woman who was choosing a sofa told reporters that Nine-five percent off, it is quite cost-effective." She calculated the account for the reporter, a new sofa about 20,000 yuan, according to 5% subsidy can save 1000 dollars, the old sofa if the sale of waste products can not be so much money.

The reporter learned that since September last year, the home of the family has carried out the "old-for-new" activities in the Beijing market. As of February 19 this year, the actual home exchanges for a total of 10,279 contracts, achieving sales of nearly 117 million yuan, accounting for 10% of the overall sales of the home furniture, the actual amount of subsidies paid for this home reached 5.834 million yuan.

In addition to Beijing, the home has promoted furniture “trade-in” activities to all stores in the country. Now it has launched furniture “trade-in” activities in dozens of cities such as Hohhot Baotou Harbin Taiyuan Jinan Zhengzhou Hefei Xi'an Guiyang Chongqing Kunming.

In March last year, Red Star Macalline launched a joint operation in ten large-scale experience stores in Beijing, Shanghai and Chongqing. It launched a “non-replacement and 100 million home upgrade” to issue subsidy vouchers to consumers with improved needs. To replace worn out or unfriendly furniture. As of the end of 2011, Red Star Macalline replaced new furniture in the form of subsidized vouchers for 10,000 households. The subsidy amount in Shanghai alone was as high as 30 million yuan.

Jimei Home, which is an old-fashioned store in Beijing, launched the “trade-in” initiative at the beginning of this year. The Jimei staff told the China Business Daily that after the Jimei home evaluation, the “home vouchers” premium was paid 2 to 3 times the market price of the old furniture. At the same time, the use of home purchase coupons can be reduced by 100 yuan on the basis of the transaction price. Zhao Jianguo, president of Jimei Home, said in an interview with reporters that in 2012, Jimei initially planned to spend 10 million yuan to carry out furniture "trade-in".

Although the three home stores are different in the form of “old-for-new”, they have achieved good results. However, in terms of specific operations, furniture “trade-in” sounds simple, but it is not easy to do.

Face two major problems

Furniture “trade-in” has the problem of difficult to be rebuilt and difficult to use. “Furniture “trade-in” must break through how to recycle how to subsidize three major difficulties.” Liu Chen, secretary general of Beijing Market Association Home Branch, said that “old-for-new” It is only a policy-level initiative. How to solve the above three problems requires constant exploration.

First of all, how to dispose of the recycled waste furniture becomes a problem.

The China Business Daily reporter interviewed the customer service of Jimei Furniture. The customer service said that “the old furniture that was recycled was damaged very much. Some tables were scattered and could be used more than 10%.” More importantly, these If the used furniture is not handled properly, it will become an environmental killer, so it must be handled properly.

The reporter also learned that Jimei’s “old-for-new” has also encountered transportation and handling problems during the operation. In order to solve this problem, Jimei Home has added two vans on the basis of dozens of delivery vehicles, which solved the transportation problem of large pieces of furniture. At the same time, there are hundreds of workers in the Jimei factory who can participate in the handling work at any time. In addition, the huge inventory pressure also makes the company breathless, only to clean up as soon as possible, in order to find the right home for these old furniture.

At the press conference on February 20th, the Real House announced that it had found a way to deal with old furniture. It will soon build an “Old Furniture Recycling Center” in Beijing’s North Sixth Ring Road. The storage center is nearly 10,000 square meters, with an initial investment of one million yuan, and will invest tens of millions of yuan in this year.

Different from the above two practices, Red Star Macalline handed over the disposal of old furniture to consumers. Red Star Macalline is not mandatory to recover. The explanation of Red Star Macalline is that old furniture is generally bulky and requires space from the recycling process to the placement. The value of old furniture is also low. If it is repaired, it will not be worth the candle. If the old recycling

Furniture flows into the hands of unscrupulous traders, and may be recharged and reloaded into the store. This is also one of the concerns.

Second, it is difficult to price. It is difficult to determine the value of an old piece of furniture. Especially the value of solid wood furniture is not well rated. The price span can reach several thousand yuan or even tens of thousands of yuan. In the absence of old furniture recycling in the industry, it is easy to generate disputes on the assessment of the problem, and consumers are more passive. In addition, the assessment of the company's appraisers is also cumbersome.

Promotional fees boost industry confidence

The restraining policy characterized by the restriction of purchase is still the main theme of the regulation of the real estate market. As a related industry in the real estate industry, the furniture industry will also be affected, and the domestic demand market will be even less optimistic. The Beijing Municipal Government has proposed to try to promote furniture consumption by “replacement of furniture”, which has encouraged the furniture industry and filled the furniture industry with expectations.

According to estimates, at present, more than 1 million sets of old furniture are eliminated every year in Beijing, which means that 1 million sets of furniture will be added to the market every year. According to the current market price of at least 3,000 yuan per set of furniture, the annual market demand for Beijing is replaced by old ones. More than 3 billion yuan.

In 2011, furniture sales in the Beijing market reached 28 billion yuan. "Beijing's annual sales growth of furniture in these years is more than double digits." Yu Xiusu, president of the Beijing Furniture Industry Association, said that "furniture upgrades have become the norm, and furniture trade-in is imperative."

Wang Wei, general manager of Hongxing Meikailong Jinghu·Southwest Region, said that once the government introduced the policy of “trade-in” for furniture, it will bring huge business opportunities to the current depressed furniture market, promote the heating of the furniture market, and further stimulate domestic demand. To help people improve their living conditions.

This is indeed the case. In the past four months since the launch of the “old-for-new”, the sales of new furniture reached 117 million yuan, accounting for 10% of the overall sales of furniture in the same period.

Furniture manufacturers have placed high hopes on furniture "trade-in", but the reporter found that many companies have doubts about this. The sales staff of one furniture manufacturer told reporters that because the company does not receive any subsidies from the state, the company is at a loss from the perspective of accounting costs. "Enterprises are not afraid of trouble, they are afraid of being laborious and unwilling." The real motivation for production enterprises to invest in the "old-for-new" of furniture is to make the enterprise beneficial. It is very troublesome for the production enterprises to recycle the old furniture, and the labor cost is also high. After the renovation, there is basically no profit space, which makes the furniture enterprises have no interest in “trade-in”. Wen Shiquan, general manager of Yifeng Furniture, said that furniture “trade-in” is a good thing for furniture companies, but it is more difficult to reuse furniture. It is hoped that the government will establish a second-hand market and provide a platform for consumers who need to rent or rent, so that some recyclable homes have a place to collect.

Execution of difficult policy to be solved

Although the “old-for-new” furniture is difficult to implement, the government’s determination to stimulate consumption has already been highlighted. It is reported that the Beijing Municipal Commercial Committee is currently mulling the policy of “trade-in” for furniture, and relevant programs are still under discussion.

The relevant person in charge of the Beijing Municipal Commission of Commerce also said that there are many types of furniture, and the materials used are different. For the solid wood panels, each type of recycling and treatment must be investigated through research. The current pilot difficulty lies in the selection and recycling of old furniture. In addition, how to subsidize different materials and furniture, etc., also need to develop a reasonable and detailed plan. The business sector will first pilot, and when selecting pilot enterprises, factors such as the degree of chaining of enterprises will be considered. The Beijing Municipal Commission of Commerce said that after the pilot enterprises are confirmed, they will publicize the society.

The determination of the subsidy method is related to the implementation and long-term effect of the “old-for-new” furniture, because furniture cannot have a relatively clear price system like home appliances. According to the relevant person in charge of the Beijing Municipal Commission of Commerce, the “old-for-new” furniture will continue the idea of ​​“old-for-new” for home appliances, using the form of store linkage, and designating several categories of commonly used furniture as “old-for-new” categories, according to the turnover of new products by the government. Give a certain amount of subsidy and set a ceiling.

Experts believe that it may not be appropriate to formulate a “one size fits all” preferential policy. How government departments delineate the scope of subsidies and play a role in stimulating consumption to benefit the vast consumer groups requires careful investigation. Relevant companies also said that in the case that the details of the policy are not clear, it is still unknown whether the market consumers can win in multiple parties. All the details of the policy subsidy need to be awaited.

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