After the end of the old-for-new policy for home appliances, the furniture trade-in policy is expected to become a new measure for Beijing to drive consumption this year. According to the Beijing Morning Post, at the 2012 Beijing Business Work Conference held recently, Beijing's consumption promotion policy has a new trend. On the basis of the successful implementation of “Home Appliances Trade-inâ€, the municipal government will pilot the “furniture trade-in plan†this year. According to the minutes of the meeting, the plan is still in the stage of discussion. It is initially expected that the government will select enterprises with higher chain and scale to conduct pilot projects and then promote them. But where is the recycling value of old furniture?
Difficulties in the identification and recycling of old furniture
Recently, the relevant person in charge of the Beijing Municipal Commission of Commerce said in an interview with the media that the new promotion policy will adopt a “linkage†format to create a better policy environment, but the specific policy content has not been announced by the competent commerce department.
According to the Beijing Business Daily, more than 1 million sets of old furniture were eliminated every year in Beijing. If these furniture are re-consumed through the “old-for-new†method, the number of furniture in each set is about 3,000 yuan. 3 billion yuan in furniture consumption. Although the specific measures of the New Deal are still being worked out, many practitioners and consumers have placed high hopes on this new policy to stimulate the market.
Yin Bo, general manager of Lan Jingli, said in an interview with the author that this new policy is a consumer product that the state has expanded domestic demand and supported by the government. The old-for-new policy of home appliances is still quite obvious. The trade-in of furniture is part of further boosting domestic demand this year. However, he said that the replacement of furniture with a new one also requires a pilot process, which is mainly due to difficulties in the identification and recycling of furniture. There are many types of old furniture, such as plate, solid wood, wood and wood, mahogany and office furniture, etc., and there are problems such as large and small pieces, new and old, and different use value. He believes that the evaluation of the value of old furniture and who is assessed is a difficult point of this new deal.
Although the store had previous experience in furniture trade-in, Yin Bo said that Lan Jingli’s family attached great importance to this new policy and is conducting detailed research and classification, hoping to cooperate with the formal recycling company. He said that the domestic recycling of old furniture is mainly due to the imperfect circulation channels and no relatively mature system. He believes that the new policy is expected to provide an opportunity for the establishment and improvement of this recycling channel. Although, the current policy of the New Deal is still unclear.
Regarding the government’s rebate on the subsidy for furniture trade-in, Yin Bo said: “It’s hard to say. At present, 5% of the rebates in some store trade-in activities belong to the individual behavior of enterprises and cannot rise to the level of government subsidies.†He said. It is hoped that the Beijing Municipal Commission of Commerce will soon introduce the selection criteria for the pilot units, and provide time and space for the implementation of this new policy pilot and the next comprehensive promotion.
Where is the use value of old furniture?
In the policy of replacing old appliances with household appliances, the government subsidies are divided into three types: home appliance replacement subsidies, freight subsidies and dismantling treatment subsidies, which correspond to different groups; subsidy funds are 100% borne by the central government; consumers can enjoy the stores. The new home appliance is priced at 10% of the subsidy and the upper limit of the subsidy is stipulated.
For the promotion of the new policy, Liu Yang, the general manager of the Chengwai Home Furnishing Store, said that “there is a superiority in the furniture renewal business in the city.†She said: "Chengwai Chengcheng is the only company in Beijing's home furnishing store that has a business license for the used goods market. It has many years of experience in recycling used furniture. Among them, the door-to-door evaluation, price and sales of old furniture have developed more maturely, just Chengwai Cheng has not yet carried out a new activity.†She said that after the New Deal news came out, Chengwai plans to further refine the operating experience of the used goods market into the new policy. “Because our previous collections did not require customers to be renewed. We are now discussing the specifics of the renewal process and will start the event as soon as possible.â€
Compared with the small number of home appliances, the wide range of furniture subsidies and standards development seems to be a problem. On this issue, Liu Yang pointed out: "The difference between furniture and home appliances is that most household appliances are single-price prices. The price of furniture is very large and the scope is very wide. If the subsidy rebate is 5%, then buy 50,000 yuan. The furniture will also be a considerable number; if you buy a set of mahogany furniture, the amount will be even larger."
However, this issue has been suggested by industry insiders to continue the policy of home appliances, select several types of commonly used furniture as the category of the old-for-new policy for consumers to choose, and set the upper limit for subsidy rebates.
In addition, Liu Yang believes that the biggest problem in the policy of replacing old furniture is how old furniture is handled. “Because the value of recycling of old furniture is not very large.†After the panel furniture is dismantled, it is difficult to reassemble. The solid wood home has a certain recycling value, but it is difficult to enter the production line for the second time. She said that the city outside is better than the other, there is a market for the old goods can be digested, as the pilot of the New Deal market has some advantages.
Regarding the value of recycling and recycling of furniture, Liu Yang said that the furniture market has developed to a certain extent, and some plates of imported furniture are imported or special materials. The old furniture that was recycled, the plates are very messy, some may not be environmentally friendly, and some sticker furniture has no recycling value, there is no way to identify and classify. However, she said that for the New Deal, the city is still discussing the outside world, and the consideration is still not mature.
However, according to the author, the "reuse space of used furniture is actually very large." Taking wooden building materials as an example, waste wood products can be processed into baseboard, laminate flooring, recycled paper, etc., and finely divided wood can be processed into finger joints, splints, etc., which can effectively reduce new The amount of wood used." There are also many technologies for the reuse of wooden furniture in foreign countries, and domestic enterprises can follow suit.
Lin Jiang, a professor at Lingnan College of Sun Yat-sen University, said in an interview on this issue that if the recycling and utilization of furniture is used to improve technology and profitability, it will not only improve the enthusiasm of consumers to purchase furniture twice, but also drive domestic sales in the domestic furniture market. Zhu Changling, secretary-general of the China Furniture Association, also said that "the recycling of used furniture should be truly promoted. At the same time as the company's own efforts, it is inseparable from the policy's dominance, guidance and support."
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