The Ministry of Commerce supports the renovation of furniture and old-fashioned pilots.

After the replacement of cars and home appliances, furniture will become the next focus of policy support. Shen Danyang, spokesman of the Ministry of Commerce, revealed at the press conference on the 15th that the Ministry of Commerce actively supported the local pilots of furniture trade-in. If the pilot is good, it can be promoted nationwide.

Furniture or the next support focus

In order to promote consumption growth, since 2009, the Chinese government has successively introduced policies including household appliances, automobile going to the countryside and trade-in, and subsidies such as subsidies for energy-saving products. Stimulated by relevant policies, China's home appliances and car sales have hit record highs.

As the stimulus policies are expiring, which products will become the focus of the next round of policy support will become the focus of market attention. In fact, as early as the National Business Work Conference at the beginning of this year, Chen Deming had revealed that he was studying a new alternative policy to promote consumption. Experts pointed out that furniture may become the focus of the next support.

"The next step of the continuation policy, I think we should look for alternative products, such as furniture, home improvement products are very important." Zhao Ping, director of the Consumer Economics Research Department of the Ministry of Commerce, told this reporter that the sales of these products last year. Although the growth rate has declined somewhat, it ranks among the top three in terms of social retail consumption. If these products can receive policy support, the development space will undoubtedly be broader.

On the other hand, the furniture industry is also an important position for export to domestic sales. According to a research report by Industrial Securities (601377), the furniture industry is a typical export-oriented industry, with annual exports accounting for nearly one-third of the output value. In the past two years, with the global economic downturn, domestic furniture production and retail sales have experienced significant declines, and furniture exports have been hit hard. In this context, many furniture companies have to transfer the “main battlefield” to the domestic market and promote “domestic sales”. The important magic weapon for furniture companies to resist the cold current of the industry.

"We believe that the implementation of furniture to the countryside and trade-in is an initiative to adapt to the development trend of the industry, which will help furniture companies to open up the domestic market and get out of the current predicament, laying a good foundation for long-term development." The report pointed out.

Some areas are planned to be piloted

This year's government work report stated that expanding domestic demand, especially consumer demand, is the fundamental foothold for China's long-term stable and rapid economic development. It is the focus of this year's work and efforts should be made to expand consumer demand. The relevant responsible persons of various ministries and commissions have also said recently that various "promotional consumption" policies will be introduced in the future.

Zhao Ping said that it is very important to expand consumption and maintain the continuity of the consumption policy. It is definitely not acceptable to withdraw from the withdrawal policy. Considering that this year's consumption situation is more severe than the previous two years, it still needs certain policy support to maintain the momentum of consumption growth.

The reporter noted that some areas are already studying new measures to promote consumption, and furniture replacement is one of them. At the 2012 work conference, the Beijing Municipal Commission of Commerce clearly stated that in order to improve the long-term mechanism for promoting consumption, this year, we will explore various projects for the benefit of the people, such as furniture trade-in, and Huiminsheng will become the focus of this year's business work.

In fact, some furniture distribution companies, such as the Real Home, have already been piloted in Beijing. The specific operation is that consumers who purchase new furniture can hand over the old furniture to the store for recycling. Regardless of the original price of the old furniture and the old and new, it will be deducted at a discount of 5% of the new furniture turnover.

Shen Danyang said that with regard to the policy of replacing old furniture with furniture, the local commercial department is now doing pilot and promotion. The Ministry of Commerce has a positive support attitude. "The pilot always has a process. If the pilot is good, it should be summarized. If you can. It is promoted nationwide."

A research report by Dongxing Securities pointed out that if the furniture trade-in policy is only implemented in Beijing, the overall furniture consumption will be less than 0.5%; if it is implemented nationwide, it will be able to pull about 15 according to the experience of home appliance trade-in. % of terminal consumption, furniture domestic sales growth rate will reach 35%.

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