Affected by the hundreds of billions of market capacity stimulated by the trade-in of household appliances, the furniture “trade-in†planned to be piloted in the near future has also been highly hoped by merchants. Industry insiders believe that this may bring new impetus and benefits to the downturned home industry.
Drive limited sales?
As soon as news of the trade-in of furniture came out, it attracted heated discussion among furniture companies. Can it ignite a fire in winter like home appliances trade-in?
"The promotion of trade-in for furniture sales will not be as immediate as home appliances," Chen Tao, vice president of Tongyi International Home Furnishing, said that trade-in for furniture does have certain positive significance for driving the consumption of furniture products, but the relevant supporting processes and systems have not yet been introduced. Furniture value assessment and recycling treatment will restrict the policies to achieve a wide range of effects.
Gao Fei, general manager of Yazhen Furniture Beijing Co., Ltd. also said that this year's new house consumption will be reduced, and the trade-in will bring some sales, but it will not play a decisive role in driving consumption and promoting sales.
Data from the sales terminals of furniture companies on the other hand confirmed that the trade-in cardiotonics did not perform as expected. Wang Jianguo, general manager of Federal Furniture Beijing, who participated in the “Furniture-for-Furniture†activity of a brand last year, said that because furniture is a durable consumer product, consumers ’willingness and rate of furniture renewal are much lower than that of home appliances and 3C products. 5% of the overall performance.
Chen Xiaotai, President of Top 100 Furniture, believes that the policy of replacing old furniture with new furniture will make consumers who originally intended to replace new furniture obtain benefits, thereby strengthening their determination to consume; and people who have no willingness to consume will be affected by the old-new activities to buy new furniture. The probability is very small.
Wang Wei, general manager of Red Star Macalline, Beijing, Shanghai, and Southwest China, believes that the trade-in is more important for the improvement of enterprise services and the improvement of home environmental protection than the marketing level. "We do not advocate that the trade-in of furniture should be positioned to improve the level of furniture sales, but should be positioned to improve the service level of home distribution companies, improve the reuse of social resources and consumers' environmental awareness."
Consumers generally welcome
Compared with the cautious attitude of the enterprise, the reporter interviewed dozens of consumers randomly, and the attitude of the consumers was generally more supportive.
Among the consumers surveyed, 70% of consumers said that they had some understanding of furniture taking over household appliances and carrying out trade-in activities. Among them, 8 consumers who are renovating houses and planning to renovate within the year have always been concerned about the trade-in policy. Most consumers expressed their support and support for the trade-in policy.
Consumer Mr. Han believes that the trade-in of furniture itself is still a means of promotion. But Ms. Qin, who has participated in the trade-in campaign, also told reporters that the old furniture is deducted at a discount of a few percent of the turnover of the new furniture, which is not a big discount for consumers.
At the same time, nearly 20% of consumers expressed concern about the whereabouts and disposal of old furniture. They worry that some companies will dismantle, refurbish and recycle the used old furniture, and then enter the market. Mr. Sun said that some old furniture has accumulated a lot of dirt and harmful substances in use. If it enters the market again, over-age use will cause harm to the human body.
Low-end products may be favored
Despite the industry's cautious views, the trade-in effect on the low-end series of well-known brands has been consistently optimistic.
According to Wang Linpeng, the president of the Actual Home Group, the trade-in campaign launched by Actual Home in September last year signed a total of 2,562 orders within a month, driving sales of 28.53 million yuan and driving sales of 150 brand products. Merchants based on well-known brands such as Red Apple and Yifeng have gained a lot, and some sofa brands have also achieved significant results. "The home furnishing industry as a whole is cold, and the trade-in activities not only provide new market space for merchants, but also actively respond to the call of the country's low-carbon environmental protection and circular economy, which has certain social significance." Wang Linpeng said.
At present, although pilot enterprises for furniture trade-in have not been announced, and specific subsidy methods are still in the pipeline, industry insiders believe that consumers who have a strong interest in furniture trade-in will be mainly working-class workers who are sensitive to prices, and their purchasing power is also Or it will directly lead to the popularity of the low-end furniture products after the introduction of the trade-in policy.
Industry analysts said that it can be predicted whether it is to imitate the old-fashioned subsidy method of home appliances (that is, the subsidy amount is 10% of the price of new home appliances, and set subsidies for TVs, refrigerators and other categories), or organize expert teams to target old furniture brands , The category, material, and color are evaluated, and the consumer will finally get a discount of hundreds to thousands of yuan through trade-in. This amount is a huge attraction for consumers who purchase low-end and medium-end furniture within 10,000 yuan.
At the same time, mid- to high-end furniture brands are still expected to get a slice of the trade-in activities. Liu Chen, the secretary general of the Beijing Market Association Home Furnishing Branch, pointed out that consumers who participate in the replacement of furniture with new ones have an improved demand. This is reflected in the improvement of the furniture they use from wood to leather, from solid wood to mahogany, and from low-value-added products to high-added. Value-added products are improved from products with a low environmental protection index to products with a high environmental protection index. Among them, it is not ruled out that consumers will focus on high-end furniture.
â– "New" conjecture
Well-known stores, furniture win-win
According to the Beijing Municipal Commission of Commerce, the replacement of old furniture with new ones will select companies with a higher degree of chaining and scale to conduct trials.
In the current mainstream home furnishing stores in Beijing, although there are many promotions, most brands have achieved the same transaction price in the same region. In the process of robbing consumer traffic, it is conceivable that the pilot trade-in stores and brands will take advantage of this opportunity to regain the price advantage, so that consumers with their own willingness to purchase can successfully place orders, and are hesitant about "can be exchanged or not exchanged" Consumers in the wandering period also have a certain incentive effect.
While gathering passenger flow and realizing sales, it can also receive government subsidies. Home furnishing stores and brands with many chain stores in Beijing will become the winners of the trade-in activities.
Pricing prices are chaotic is expected to reverse
Unlike household appliances, automobiles, and other categories, furniture products have a low degree of standardization, and the categories, materials, and sizes are also more complicated, which makes it difficult to evaluate old furniture. Therefore, if the government department organizes a team of experts to evaluate, the results may be difficult to satisfy consumers.
In contrast, linking the amount of subsidies to the price of new furniture is a simple and easy way of operation. Whether subsidizing 5% or 10% of the price of new furniture, it means that products with a markedly high price will provide relatively large subsidies and their profits will be diluted. For this reason, the recent call from strong brand stores for clear and real prices of home products will hopefully improve the chaotic phenomenon of arbitrarily high furniture prices.
Forming a recycling industry chain
Over the years, the problems of heavy manufacturing and light recycling have been particularly serious in the home furnishing industry. Taking old furniture as an example, manufacturing enterprises produce, distribute them for distribution, and use them by consumers. There is no other way to eliminate old furniture except to sell it to the flea market or simply throw it away as garbage.
After the Beijing Municipal Commission of Commerce's pilot trade-in for new ones, it is expected to organize and subsidize professional recycling and dismantling companies to dispose of the old furniture, dismantling it into panels, glass, hardware, leather and other categories, and have secondary use value. The reprocessing and utilization of resources will definitely promote the production, sales and recycling of household products to form a one-stop industrial chain.
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