Beijing Furniture Replacement Pilot Project Begins Public Bidding

Substantial progress has been made in the trade-in of furniture that has received much attention. The Beijing old-fashioned furniture replacement project has started public bidding recently. The bidding includes furniture sales enterprises, renewable resource recycling enterprises and waste pollution-free treatment enterprises.

The “Tender Notice for Beijing Furniture Replacement Pilot Project” on the website of Beijing Municipal Finance Bureau shows that the Beijing Furniture Replacement Pilot Project led by the Beijing Municipal Commission of Commerce will start public bidding from September 19 and will not exceed 6 by public bidding. Home furniture sales enterprises, no more than 5 renewable resource recycling companies and 1 waste pollution-free treatment enterprise. According to relevant sources, the bid opening time is October 10th. After selection and publicity, relevant policies may be implemented from the end of October.

Growth expectation

According to Yu Xiusu, vice president and secretary general of the Beijing Furniture Industry Association, furniture trade-in was first tried by companies such as the Real Home, and then piloted in other regions. If the pilot is successful, this policy may be promoted nationwide. Yu Xiusu also mentioned that the original plan of the policy lasted for half a year, but due to the purpose of seeking experience for the old-for-new pilot project, the pilot time will be shortened. The bidding announcement mentioned that the service time of the winning bidder is one month. However, the proportion of subsidies that consumers are most concerned about has not yet been finalized. Some insiders expect that the subsidy ratio will be 5% to 10% of the price of new products.

Wang Ke, president of the Guangdong Furniture Association, analyzes whether the key to the successful implementation of furniture trade-in is how to make the people get more benefits and how to effectively recycle the recycled furniture. If these two problems can be solved, Large-scale growth in the furniture industry is possible.

Huatai Securities research report shows that if the furniture trade-in policy is implemented nationwide, according to the experience of home appliance trade-in, it can drive about 15% of terminal consumption. Estimated by an additional 10% of the terminal consumption, then about one year can drive furniture consumption of 560 billion yuan.

Some people familiar with the situation expect that the policy will be implemented as early as the end of October, and the subsidy ratio is 5% to 10% of the price of new products. Although this statement has not been officially confirmed, many consumers are worried that the implementation of trade-in, furniture manufacturers will quietly raise prices.

Previously, many home furnishing companies have tried to promote trade-in activities in different forms. For example, some home stores in Beijing are subsidized according to 5% of the amount of new furniture purchased by consumers. Old furniture is recycled by the store without any additional fees; some home stores offer subsidies ranging from 500 yuan to several thousand yuan. When consumers purchase new furniture, they can directly discount the cash with subsidy coupons.

Wang Ke believes that the old-fashioned approach of unilateral subsidies by enterprises has not been of great practical significance. "It is not so much a trade-in as a discount. It is equivalent to the discount of ordinary shopping malls and truly benefits to consumers." Not big."

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