How is Sichuan’s policy being implemented during the old-for-new exchange program?
2024-08-10
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Sichuan News Network - First Screen News reporter Liu Jiahui and intern Wang Xilei photographed the report
Have you participated in the old-for-new exchange today?
At present, Sichuan Province is actively carrying out the three major consumer goods replacement activities, namely, replacing cars with "energy", replacing home appliances with "smart", and "renewing" home furnishings and kitchen and bathroom appliances. The implementation of the policy will benefit enterprises and the people and stimulate consumption potential.
Judging from the data, the auto market is hot. As of August 4, Sichuan's auto trade-in has driven consumption of 3.18 billion yuan. The home appliance and home decoration kitchen and bathroom markets have also "moved" in response to the trend. The industry predicts that after the addition of various subsidies, consumers may enjoy 35% or even higher subsidies when purchasing home appliances in the future.
Promotional materials for old-for-new exchange can be seen everywhere in the home appliance market
"Real money" support
Sichuan ranks sixth in the country in terms of number of car trade-in applications
The trend of exchanging old products for new ones has first stirred up the automobile market.
BYD launched a policy of subsidizing old cars for new ones, offering subsidies of up to 28,000 yuan; NIO issued subsidies of up to 1 billion yuan for replacing gasoline cars, and gasoline car users will receive an additional 10,000 yuan in optional fund subsidies when they replace their new cars; Tesla simultaneously launched a limited-time financial replacement policy in China, and users can choose a 0% or low-interest car purchase plan for up to 5 years... Many car companies have released preferential "bonuses".
The reporter found that after the new policy of car trade-in was implemented, market sentiment was boosted and consumers' purchasing enthusiasm increased.
"The policy subsidies plus discounts can help me save nearly 20,000 yuan." In the Tesla Taikoo Li Experience Store, Mr. Wang, a citizen who has been driving a fuel car for more than ten years, decided to take advantage of the old-for-new subsidy policy and buy a new energy vehicle.
Wang Xuan, the store manager, revealed that the subsidized models currently include two popular models, Model 3 and Model Y, and users can also enjoy an additional 90-day free trial of the enhanced automatic assisted driving function.
"Recently, the number of consumers coming to our store to view cars and consult has increased significantly." Wang Xuan said that the trade-in program encourages car owners to scrap their old cars and purchase new ones, which directly stimulates the growth of new car sales and further increases the activity of the consumer market.
Tesla Taikoo Li Experience Store
The reporter learned from the Resource Recycling Office of the Sichuan Provincial Department of Commerce that as of 12:00 noon on August 4, the number of applications for car trade-in subsidies nationwide was 471,000, and Sichuan submitted 24,234 applications, driving consumption of 3.18 billion yuan, accounting for 5.1% of the country, and ranking sixth in the country in terms of the number of applications submitted.
Home appliances, kitchen and bathroom replacement
The industry predicts that consumers can enjoy price subsidies of 35% or even higher
In addition to the automotive sector, the old-for-new exchange of home appliances is also in full swing.
According to the "Action Plan for Promoting the Trade-in of Consumer Goods in Sichuan Province" (hereinafter referred to as the "Plan"), subsidies for the trade-in of home appliances will be implemented. For individual consumers who purchase seven major types of green smart home appliances, including televisions, refrigerators, washing machines, air conditioners, projectors, integrated stoves, and water heaters by selling old home appliances in the province, a one-time subsidy of 10% of their actual selling price will be given, with a maximum of RMB 1,000 per unit.
With policy support, major home appliance brands have launched a variety of preferential subsidies to stimulate consumption.
"I turned old home appliances into new energy-saving and easy-to-use appliances. It's a good deal!" Mr. Xu, a resident of Midea Smart Home (Jan'anzhijia Store) in Jinniu District, Chengdu, bought a refrigerator by exchanging old appliances for new ones. Zhang Lan, a salesperson at the store, said that consumers' attitude towards new home appliances has changed from "buying them or not" to "exchanging them for a little extra money", and store sales continue to be hot.
Haier launched a subsidy campaign for old-for-new exchanges in Jianyang (Photo provided by Haier Smart Home Sichuan Branch)
"After the policy was introduced, Haier launched a 'double subsidy' campaign for the government and enterprises to exchange old appliances for new ones in all regions of the province, held 13 launching ceremonies, and provided a maximum subsidy of 20% for the exchange of old appliances for new ones." A relevant person in charge of Haier Smart Home Sichuan Branch said that as of July 31, under Sichuan Province's old-for-new policy, Haier's exclusive store channel had a retail sales amount of 60.55 million yuan and recycled 14,583 old appliances.
Xiong Yingping, president of the Sichuan Household Appliances Business Association, believes that the old-for-new policy for consumer goods will allow many residents to further update and iterate on environmentally unfriendly, unhealthy and unsafe electrical appliances in their homes, which will not only satisfy consumers and relieve the worries of enterprises and businesses, but will also help promote manufacturers to develop more green and smart products.
"The country has clarified the subsidy standards for the trade-in of eight categories of home appliances. For individual consumers purchasing related home appliances, the maximum subsidy ratio can be up to 20% of the sales price." Xiong Yingping predicted that with the addition of various subsidies from enterprises, merchants, factories, etc., consumers purchasing home appliances may enjoy subsidies of 35% or even higher in the future.
According to the plan, in addition to the subsidies for replacing old appliances with new ones, the renovation of old houses, partial renovation of kitchens and bathrooms, and renovations to suit the needs of the elderly will also be supported through the issuance of consumer coupons. Many home improvement market sales staff said that the old-for-new exchange has not only accelerated the process of "renewing" the kitchen and bathroom of ordinary people's homes, but also attracted a wave of "wait-and-see" customers to the market, effectively stimulating consumption.
Expert interpretation
Trade-in accelerates the transformation of the consumer market
In the view of Professor Tang Jiqiang, Director of the Southwestern University of Finance and Economics Think Tank and Chief Economist, implementing the old-for-new policy for consumer goods is an effective means to deal with changes in economic consumption and economic difficulties. It is also an important means to revitalize economic stock, improve economic quality, and promote economic activity.
"China's economy has now entered a stage of deep adjustment, and some new consumption situations have emerged." Tang Jiqiang believes that, judging from the current situation, the old-for-new policy is a very timely policy that will help accelerate the transformation of the province's consumer market from "whether or not" to "how good".
Tang Jiqiang said that the old-for-new policy further supports the transformation and upgrading of residents' consumption. People will be more willing and determined to "replace with new ones", allowing energy-saving, environmentally friendly and intelligent high-quality products to enter thousands of households, which will be conducive to improving the quality of life of the majority of residents.
To make the old-for-new policy more beneficial in the long run, Tang Jiqiang suggested that the policy should be fully publicized, the steps and procedures for enjoying the policy should be reduced, and the obstacles in implementation should be removed. "Consumers should feel that the process is easy and simple, and they should be willing to respond to the national call and pay for it, so that they can be happy and assured in the exchange."
