I am going to renovate my new home soon. Would you worry about dealing with old furniture that is not too small but unattractive? No one wants to sell it, no place to throw it. Recently, the Beijing Municipal Commission of Commerce clearly stated at the 2012 Beijing Business Work Conference that Beijing will pilot the “old-for-new†furniture. Although the relevant implementation measures are still under discussion, practitioners and consumers are promoting this new policy. There are high hopes.
When the “old-for-new†appliance was successfully completed, in Beijing, furniture “trade-in†became another hot topic. Furniture trade-in may continue the policy of replacing old appliances with old ones. In the joint market, several large-scale furniture retail stores will use several types of common furniture as old-for-new items, and subsidize according to the percentage of new product turnover, and set an upper limit.
In fact, the home of the family has started piloting the old-for-new activities in Beijing last September. Consumers who purchase new furniture can hand over the old furniture to the store for recycling. Regardless of the original price of the old furniture and the old and new, it will be deducted at a discount of 5% of the new furniture turnover. This is the same as the previous policy of replacing old appliances with old appliances.
Stimulating consumer consumer response
The Beijing Trade Commission’s recent proposal to replace the furniture with the old one is not the idea that the government has taken the lead in promoting market transactions. In fact, as early as last year, the “old-for-new†furniture market in Beijing has been quietly carried out and is very popular among consumers. In the first phase of last year's event, the home has already recycled 1,405 old furniture. Jimei’s “Furniture for the New†campaign is also closely followed. In just a few days when newspaper advertisements were posted, Jimei’s home-changing old-fashioned customer service hotline reflected to some extent the consumer’s pursuit of furniture trade-in activities. The one-stop service of recycling old furniture is extremely convenient for the majority of consumers. It was welcomed at the beginning of the launch, and the next development will definitely be smoother.
These behaviors in the previous furniture stores were relatively fragmented, and this consumption behavior may be further developed if the policy of the business sector is instigated. At the same time, it also conforms to the habit of Chinese people accustomed to concentrated consumption when moving to a new home.
“trade-in†as a value-added service is more like a hormone for the current depressed furniture market. The person in charge of the furniture company said that the trade-in of furniture will have a great stimulating effect on the current household consumption demand in the downturn. “Many consumers have the idea of ​​updating furniture, but on the one hand they are somewhat difficult to price, on the other hand they have to throw away old furniture and feel wasted.†And the old-for-new can solve these two problems well, one can reduce The price of newly purchased furniture, in the second place, has dealt well with the problem of old furniture. During the visit, the reporter also found that consumers in the market are generally welcome to “trade-in†and are more optimistic.
In fact, the trade-in is just a name, how to change is the most concerned about consumers. The stores that are one step ahead, such as the Home of the House and Jimei Home, provide a good reference for the implementation of relevant policies. Take the actual home as an example, the scope of the old-for-new is set to be wider. Furniture products in the store, after the various discounts of the business, can still enjoy the trade-in discount. This is more real than the trade-in of the home appliance market last year. Moreover, the rule is a "one-on-one" exchange of furniture of the same category, such as a sofa for a sofa, a bed for a bed, and a deduction of 5% of cash. At the same time, the other is more affordable than the home appliance, that is, the exchange only looks at the proportion, and there is no upper limit, the deduction amount only follows the actual price. For example, a sofa of 10,000 yuan will be offset by 500 yuan, and a 100,000 yuan will be offset by 5,000 yuan. And there is no limit to the source of the furniture.
In the case of Jimei Home, which is the first step, the old-fashioned coupons are used. The old furniture is uniformly collected by the store, and the replacement coupons marked with the corresponding subsidy amount are issued to the customers according to the evaluation result of the appraisers, which can be used for cash. . No matter how "changing", it seems that the attractiveness of furniture "trade-in" is far greater than that of home appliances.
Regarding this policy, some people in the industry have put forward different opinions. They think that "this is a huge project and it is difficult to operate now." Because furniture recycling is not the same as home appliances, home appliances can be recycled. For furniture, in addition to some high-quality solid wood, the recycling value of ordinary plates is not high. Who should pay for this part of the subsidy fee first, and how to deal with it after recycling should also be standardized.
Unprofitable companies are not enthusiastic
What do the recycled old furniture do? Who is it sold to after renovation? This is all a problem that needs to be solved. The reporter learned that the "old-for-new" marketing model is an effective way to solve the problem of old furniture, but it also increases the operating costs of furniture dealers to a certain extent, and its enthusiasm is not high.
The reporter entered the store of a brand furniture in the name of furniture in the name of furniture. When asked if he was involved in “old-for-newâ€, the sales staff of the store told reporters that it is better to participate in the shopping mall activities directly. “We used to play six. 50% off, now the mall engages in activities, our discount is also adjusted to 40% off, which is more cost-effective than the 5% subsidy of the mall." She gave the reporter a calculation, 10,000 yuan of furniture, 65% off is 6,500 yuan, shopping malls back to 5 % only 300 yuan more, "We will give you a 40% discount, can save 500 yuan."
After consulting a number of brand furniture dealers, the reporter found that many companies are not willing to participate in furniture trade-in. “Enterprises are not afraid of troubles, and they are afraid of being uncomfortable.†The deputy general manager of a furniture brand believes that the real power of the production enterprises to invest in the old-for-new work 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 room for profit, which makes the furniture enterprises have no interest in the trade-in.
Mr. Liu, a salesperson of a furniture manufacturer, told reporters that since the company does not receive any subsidies from the state, the company is at a loss from the perspective of accounting costs. But from the perspective of driving sales, it still has a role. “If the country can treat the recycling of old household appliances, it will be good to give back some old furniture.†Mr. Liu also said that the repurchase of furniture is indeed a small profit or even a loss. If there is similar home appliances and cars, “old-for-new†Supported by subsidy policies, they are very willing to recycle furniture. In addition, from the perspective of environmental protection, if the government department bears part of the cost of transportation and sorting of old furniture, recycling factories and merchants are profitable, which helps to speed up the recycling of resources and the efficient use of resources.
Mr. Zhao, an expert in the furniture industry, also said that some pure solid wood furniture has been repaired, refurbished, and can be resold, but the market demand is not large, and the price is not too good. If it is transported to a poorer area, on the one hand, logistics costs are high, on the other hand, rural living standards are now improving, and the demand for old furniture is not large. In addition to ordinary wood furniture, steel furniture and laboratory furniture companies related to government procurement also said that it is too difficult to recycle. Steel furniture can hardly be recycled and reused, because the materials of steel furniture are spray-treated, and it is technically impossible to use the materials of old furniture.
“The handling of old furniture is more complicated. The poor quality can only be treated as garbage. The selling price of good quality is also very low. Plus the furniture is big and the transportation cost is very high.†Mr. Zhang, the person in charge of a material recycling company, told Reporter, furniture recycling is not as convenient as home appliance recycling, and the profit is extremely low. It is difficult to find a buyer after recycling, so I have to send it to the second-hand furniture market to make some money.
In view of the current lack of interest of furniture companies in the recycling of old-fashioned furniture, industry insiders analyzed that the recycling of used furniture should be really promoted, I am afraid that more policy guidance and support are needed.
Establishing a recycling mechanism is imminent
In the furniture industry, there are not many companies that have introduced furniture "old-for-new" like the home of the family, but there are many consumers who have such needs. This point can be seen only from the sales achieved by the actual home launch of the initiative. Although the handling of old furniture is still the heart of Wang Linpeng, the president of the actual family, he unexpectedly made another decision: to change the furniture “trade-in†from a promotion to a service without a deadline.
"Handling old furniture is also a problem for consumers. Before there is no proper method and technology, we will first establish a recycling mechanism to promote recycling of old furniture as a service." In front of dozens of media in Beijing, Wang Linpeng solemnly stated that If there is any old furniture that has been disposed of in the consumer's home, when the new furniture is purchased in the home, the actual home will be responsible for recycling and continue to pay 5% of the compensation. "A warehouse is not enough, I will prepare a few more warehouses, and the warehouse will not let me go."
Zhang Bingbing, secretary general of the China Furniture Association, greatly appreciated the practice of the home. She believes that the old furniture reprocessing technology that is not mature and can be practiced is the main reason why old furniture is difficult to re-enter the market. However, the market should have a recycling mechanism or system that cannot let consumers throw things away, nor can they look old. Furniture is treated as garbage. In this regard, the support of the government departments is still blank, and it is hoped that the home of the family can take the lead. She suggested: "In conjunction with the National Safe Housing Project, give the old homeowners with less damage to the needy homeowners, or give them to poor families in need in suburban counties."
Furniture "trade-in" can be incorporated into the government's plan to promote consumption, which is a good news for the home industry. It is a good vision for the government to introduce furniture “trade-inâ€, which is an opportunity for the home industry to develop itself. In the final analysis, it is still to let consumers enjoy the benefits, so that businesses have more business to do, but the real operation is still quite difficult, and whether the policy can be implemented is the key. Before the company went it alone, it has accumulated some experience and can provide reference for government decision-making. The biggest obstacle to the recycling of old furniture is that it can be effectively solved under the leadership of the government. As a result, companies that participate in “old-for-new†can reduce their shackles and lightly go into battle, fully cooperating with the government's promotion of consumption.
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