Refurbishment of furniture or boost the market development of low-end products

Affected by the hundreds of billions of market capacity stimulated by the home appliance industry's trade-in, the furniture "trade-in" planned for the near future will also have high hopes from merchants. Industry insiders believe that this may bring new momentum and benefits to the downturn in the home industry.

Drive limited sales?

As soon as the news of furniture trade-in comes out, it has 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, said that the consumption of new houses will be reduced this year, and the trade-in will bring some sales, but it will not play a decisive role in driving consumption and promoting sales.

The data from the sales terminal of the furniture company confirms that the trade-in cardiotonic effect is not 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, also 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 did not have the willingness to consume will be affected by the old-new activities to buy new furniture Is unlikely.

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 enterprises, reporters interviewed dozens of consumers at random, and the attitudes of consumers are generally more supportive.

Among the consumers surveyed, 70% of consumers said that they have some knowledge about furniture taking over household appliances and carrying out trade-in activities. Among them, 8 consumers who are renovating their houses and planning to renovate within the year have been paying attention to 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

Although the industry is more cautious, the trade-in effect on the low-end series of well-known brands has been unanimously optimistic.

According to Wang Linpeng, the president of the Actual Home Group, the trade-in activities carried out by Actual Home in September last year signed a total of 2562 orders, driving sales of 28.53 million yuan, and driving the 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.

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 the subsidy ceiling for TVs, refrigerators, etc.), or to organize an expert team for the brand, category, material, The evaluation of the condition is made, and the amount of concessions that consumers finally obtain through trade-in should be within a few hundred yuan to a thousand yuan. 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.

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