Furniture trade-in policy
A few days ago, on the basis of the successful implementation of the “old-for-new†appliance, Beijing has also studied and proposed to launch a new policy of stimulating consumption growth. On February 3, 2012, at the Beijing Business Work Conference, it was proposed that the “old-for-new†policy for furniture will be implemented in Beijing during the year.
Although the current work plan and implementation rules are still in the discussion stage, the relevant person in charge of the Business Committee revealed that the “furniture for the old†is likely to continue the policy of replacing old appliances with old ones, or to select enterprises with large scale and high degree of chaining. Subsidies are paid according to the percentage of product turnover.
Long before the Beijing Municipal Commission of Commerce proposed to introduce the policy of “renovation of furniture and old-fashionedâ€, there were already home-run stores such as the Real Home, Red Star Macalline and the “Old-for-new†activities. In this regard, the industry also said that although the furniture "old-for-new" for the benefit of the country and the people, but also in the "marketization" and "humanization" ideas to operate, the formation of long-term benefits.
"Furniture trade-in"
In the home furnishing industry, it is no stranger to mention the “old-for-new†furniture, because in 2011, the home circulation enterprises such as the Real Home, Red Star Macalline spontaneously launched a series of “trade-in†activities, and won a lot of voices.
On March 13, 2011, Red Star Macalline held a press conference on the “Non-Change for 100 Million Households Subsidy Programâ€, announcing the initial investment of 100 million yuan to provide cash subsidies for the improvement of sex households. According to Wang Wei, general manager of Hongxing Meikailong Jinghu·Southwest Region, many people's furniture styles and functions have not met the current needs, which has created a huge demand for improved decoration. The high level of attention received by Red Star in the past year has also proved this assertion. In Shanghai alone, more than 10,000 consumers have participated and benefited.
The company that also spontaneously launched the "furniture for furniture" has a home. In September and November of 2011, the family actually launched the “Furniture for Trade-in†campaign twice. It is understood that in the first "trade-in" campaign, more than 3,000 consumers participated in just one month, and more than 2,000 pieces of furniture were recycled, with cumulative sales exceeding 30 million. Ren Cheng, vice president of the Real Estate, told reporters that the launch of “old-for-new†is a direct manifestation of the improvement of the service of the home, and it solves the difficult problem of the old furniture for the old customers. On the other hand, it is also leading the merchants to actively respond to the regulation of the property market. The negative impact to effectively drive sales.
In addition, many merchants in the interview with Sina home reporters said that the "old-for-new" activities launched by Red Star are very obvious to drive sales, and they have stabilized their business confidence while gaining new business opportunities. At the same time, many beneficiary consumers also expressed their interest in the “trade-in†campaign in anticipation of the early implementation of the new policy.
Home store or increase the strength of the company's own promotion
Among the many appeals, the policy of “trade-in†for furniture came into being. After the news came out, it received great attention and discussion in the industry. Different from the “furnishing and replacing the furniture†independently carried out by the home store in the past, the “old-for-new†will be arranged by the government departments, which has also been welcomed by many brand home enterprises. The reporter was informed that some brand stores and furniture companies are actively considering cooperation and participation; of course, some enterprises have indicated that they will wait until the policy rules are promulgated before making plans.
Wang Wei, general manager of Hongxing Meikailong Jinghu·Southwest Region, said that Beijing will test the news of the old-fashioned furniture replacement. Red Star first communicated with the Beijing Municipal Commission of Commerce and will experience the experience of Red Star in the past and the future. The plan reported to the Municipal Commercial Committee. Wang Wei told reporters that in the future, Red Star will actively cooperate with relevant departments and participate in the "old-for-new" process. It is understood that in 2012, Red Star will continue to upgrade the “furniture for furniture replacement†subsidy program, and focus on promotion in Shanghai, including “subsidy for consumersâ€, “professional team door-to-door serviceâ€, “guide to the safety of furniture use†and Four major projects "Professional guidance on the handling of old furniture."
Ren Cheng, the vice president of the Real Home, also said that pushing the “old-for-new†from the government level is more powerful than the enterprise, which will have a great effect on improving the operating conditions of the industry. Actually, he will actively respond to the government’s call for a “trade-in†job. The reporter also learned that the actual home is building a nearly 6,000 square meters dismantling workshop, and plans to push the old furniture with reusable value to the second-hand trading market, and the products that cannot be reused will be dismantled into large core boards and fiber boards in the workshop. , hardware, glass, iron products and other categories, and then handed over to the professional recycling company for processing, so that the old furniture turned waste into treasure.
Yin Yuxin, deputy general manager of Oriental Homeland, said in an interview with reporters that from the past experience and current market conditions, “furnishing old furniture†is nothing more than providing a statement for corporate promotion, and it cannot cause substantial benefits. Moreover, the "furniture replacement of furniture" operation is very complicated, so wait for the specific rules of the policy to be introduced before considering whether to join the "old-for-new" list. The reporter was informed that there are still a few companies with the same attitude.
Wang Xiaobing, vice president of decoration now, told reporters that furniture trade-in will moderately increase the sales of furniture in large stores and brands. Because of government policy behaviors, it is estimated that only large stores and a few brands are eligible. Trade-in, the middle and low-end consumer groups will have a higher response, and this part of the group is the mainstream of consumption, so the corresponding low-end positioning brands will benefit, at least will reduce their customer diversion. But this can't solve the problem fundamentally. The sales must rely on products, prices, services and sales channels, and sales strategies.
Industry calls for market-oriented operation of furniture trade-in
Undoubtedly, furniture “trade-in†has a great impetus to driving home sales and improving the home environment. However, it is undeniable that furniture “trade-in†is also a huge project, and it is facing many challenges to get this done.
The industry pointed out that due to the wide variety of furniture and different materials, this directly led to the complexity and difficulty of the furniture "trade-in" operation. First of all, the choice of pilot enterprises, what kind of enterprises can bear the "old-for-new" responsibility; Second, the issue of subsidies, how to change the materials of different materials, how to subsidize, how much subsidies, who pays for subsidies? Third, the problem of recycling old furniture, whether the recycled furniture is reused, how to use it, and who will use it? What if I can't reuse it? Fourth, the valuation of old furniture, how to estimate the price of old furniture of different materials, styles and ages? and many more. The series of problems has become a problem that plagues furniture companies.
In this regard, Zhu Changling, chairman of the China Furniture Association, pointed out that the crux of all problems lies in whether the policy is meticulous and whether it is implemented. Zhu Changling said that in order to become a long-term means of "trade-in", it must be implemented in accordance with the market economy. This also requires relevant departments to adhere to the "open, fair and just" attitude and try to avoid "thunder and rain, small rain". .
Zhang Chuanxi, executive director of the Chamber of Commerce and Industry of the National Federation of Industry and Commerce, said that the key to the difficulty of replacing the furniture with old ones is to find the way for the old furniture, instead of using the “old-for-new†as a means of promotion, otherwise it will only shorten the service life of the old furniture, resulting in Waste of resources, which is not beneficial to the entire society. Zhang Chuanxi pointed out that the recycling and utilization of old furniture is best solved according to market rules.
Yu Xiusu, president of the Beijing Furniture Association, also pointed out that the difficulty of “replacement of furniture†is that there is no smooth processing channel for recycled furniture. Yu Xiusu told reporters that at present there is no professional and mature enterprise dealing with old furniture in China, and this is impossible to establish with the power of the enterprise itself, so the government is in urgent need of support.
In the view of Hongxing Meikailong Wang Wei, if you want to operate effectively, you need to cut in from the perspective of marketization and humanization. Wang Wei analyzed that in the old furniture processing, environmental issues, consumer sentiment, product value evaluation, and property rights transfer should be considered. This requires the construction of a system of value assessment and property transfer rules, but also requires the pilot enterprises to be fair, just and open in the implementation process.
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