Trade-in is becoming a buzzword in today's consumer market.
A month ago, with the official launch of the "Implementation Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods in Guangdong Province", the high-quality development of the largest economic province has opened up a broader space.
In fact, this is a major decision and deployment made in view of the overall situation of high-quality development. Not long ago, the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods", which is undoubtedly a powerful measure to promote the growth of the total economy.
As the city with the fastest economic growth in the first quarter of the Pearl River Delta, Zhuhai, the "C position", while striving to rush to the "new" round of "trillion cities", has also acted quickly and responded positively, joining the queue of "trade-in" non-stop. Seizing the opportunity of the new round of action, Zhuhai has the confidence, determination, potential and motivation to help accelerate the realization of the provincial and national economic goals.
How to explore the "new" road for the "old"? Zhuhai's blueprint has been rolled out.
Guangdong C Zhuhai, the "old" should explore the "new" road in this way. Liu Zixin Drawing
Who's grabbing the "head soup"?
There are various signs that the potential renewal demand of the market has entered a period of concentrated release.
Taking the most common mobile phone in life as an example, data from the China Association of Circular Economy shows that the average lifespan of a mobile phone is about 2.2 years. On average, the mainland produces more than 400 million used mobile phones every year, and the stock of used mobile phones reaches more than 2 billion.
On April 30, Zhuhai announced that it would carry out the first phase of the "trade-in" consumption promotion action and car replacement and renewal activities for household appliances and automobiles from May onwards, and organize the issuance of "trade-in" consumption vouchers for household appliances and cars in the city of up to 8,000 yuan.
It is worth noting that mobile phone electronic products have also joined Zhuhai's "trade-in" consumption promotion activities: during the event, individual consumers sold any old household appliances and purchased 17 types of household appliances such as green, intelligent and low-carbon air conditioners and mobile phone electronic products, and issued a "trade-in" 9% off consumption voucher for household appliances, and the offline stores participating in the activity were all over the Xiaomi, Honor, Huawei, Apple and other large and small mobile phone brand stores in various areas of Zhuhai.
The "lattic" market demand for home appliances is even greater.
According to the data, by the end of 2023, the number of household appliances in major categories such as refrigerators, washing machines, and air conditioners in mainland China will exceed 3 billion units. It is estimated that the upgrading of household appliances will likely create a trillion-scale market space.
It can be seen that "trade-in" is an option for consumers to benefit the people, and it is also a choice for enterprises.
In fact, before the city's "old for new" consumption promotion activity officially started, there were already enterprises in Zhuhai rushing to drink "head soup".
On April 28, Zhuhai Gree Electric Appliance Co., Ltd. announced that from now on, it will invest 3 billion yuan to start the trade-in activity of household appliances. The online mall has Gree Dong Mingzhu store, and the offline store has more than 30,000 stores across the country.
In addition to Gree Electric Appliances, at present, Zhuhai also has Taifeng Electric Appliances, Suning Tesco, National Electrical Appliances, Jinyi Communications, China Resources Vanguard and other Zhuhai brand merchants have followed suit, through the issuance of home appliances "trade-in" subsidy coupons, group purchase subsidies, super discounts and other forms, to join the ranks of "trade-in".
According to the rules of the event, the merchant will give the buyer a subsidy of 10% of the sales price of the newly purchased household appliances, and the upper limit of the subsidy is 500 yuan/piece (unit), and the buyer can receive up to 4 consumption vouchers, which means that the maximum subsidy is 2,000 yuan.
Is it "destocking" or "optimal increment"?
Nowadays, with the advancement of technology, people's demand for higher quality, smarter, greener and more personalized consumer goods is also increasing.
Taking new energy vehicles as an example, according to the latest data released by the Passenger Association, in April this year, the domestic retail penetration rate of new energy vehicles reached 43.7%, an increase of 11.7 percentage points from the penetration rate of 32% in the same period last year. In the context of the decline in sales in the national passenger car retail market, this data is a more powerful argument.
The pursuit of the "new" means that there must be more disconnection, renunciation, and separation from the "old".
According to the data, the number of motor vehicles in Zhuhai has increased from 391,000 at the end of 2014 to 1,036,200 at the end of March 2024. The "exponential" growth of vehicles has brought severe challenges to the traffic in Zhuhai, and has also put forward more urgent requirements for "destocking" and "optimal increment".
In the Zhuhai car replacement and renewal activity, individual consumers who transfer their own vehicles in Zhuhai and purchase new energy vehicles and fuel vehicles that meet the National VI emission standards in Zhuhai will receive a one-time car purchase voucher subsidy of up to 8,000 yuan.
Under the attraction of positive superposition, the consumption enthusiasm of the wait-and-see group in the automobile market is expected to be stimulated. Some industry insiders believe that the "trade-in" reasonably guarantees the replacement demand of fuel vehicle consumer groups, which will be of great significance to the stable development of the auto market.
Mobile phones, home appliances, automobiles...... It can be seen that in the market environment where the "stock" is becoming more saturated and the "increment" is stimulated, more and more businesses have begun to shift their attention to the "stock".
"Destocking" or "optimizing increment" is no longer a dilemma. "Trade-in" has brought a new idea of "mining increments from stocks", which is expected to promote consumption and investment to form a virtuous circle that promotes each other, boosting demand and confidence.
How to lay out the "1+13" combination boxing?
Under the new economic background, Zhuhai has also laid out a new way of playing how to "remove the old" and "replace the new".
On April 30, Zhuhai issued the "Implementation Plan for Zhuhai to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in" (hereinafter referred to as the "Implementation Plan"), which clearly will carry out a new round of consumer goods trade-in actions around automobiles, home appliances and furniture, so as to further release the potential of investment and consumption and effectively promote the high-quality development of Zhuhai's economy.
In view of the "old removal" of automobiles, the "Implementation Plan" proposes that Zhuhai will strictly implement the provisions of compulsory scrapping standards for motor vehicles and vehicle safety and environmental protection inspection standards, and eliminate old cars that meet the mandatory scrapping standards in accordance with laws and regulations.
A clear goal is that by 2027, the number of scrapped cars in Zhuhai will double compared with 2023, and the annual transaction volume of used cars will increase to more than 100,000. This means that every 10 or so old cars enter the "new" queue.
To promote the "replacement" of automobiles, the "Implementation Plan" makes it clear that Zhuhai will encourage automobile production and distribution enterprises to provide preferential benefits for car purchases by carrying out promotional activities, issuing replacement subsidies, and giving away charging piles, so as to promote the consumption of automobile renewal.
In terms of household appliances, the "Implementation Plan" encourages enterprises in the production, sales and recycling of household appliances in Zhuhai to jointly carry out trade-in promotional activities for household appliances, open online and offline activity areas, and give preferential treatment to consumers who exchange old household appliances for energy-saving household appliances.
In terms of furniture and home decoration consumer goods, according to the "Implementation Plan", Zhuhai will also study various ways to support residents to carry out local renovation of old houses, kitchens and bathrooms, and home renovation for the elderly through various ways such as government support and enterprise concessions.
Trade-in the old for the new, Zhuhai planned to lay out the "1+13" play. In addition to the above-mentioned Implementation Plan, Zhuhai will also formulate a series of policy documents, including the trade-in of consumer goods, waste recycling system, standard improvement work plan, and equipment renewal work plan in 10 fields such as industry, energy, and housing and construction.
The rapid and careful deployment of the "combination punch" of the "old for the new" policy has activated the new momentum of high-quality development, and also demonstrated the self-confidence and responsibility of Zhuhai, which is in the "C position".
Can real estate be "renewed"?
While the tide of "trade-in" of consumer goods has begun, the real estate industry is also stepping up its actions.
Under the new situation of major changes in the relationship between real estate supply and demand, the "trade-in" of commercial housing is becoming a new trend and is being implemented in many cities. According to the statistics of the China Index Research Institute, as of May 6, more than 50 cities across the country have expressed their support for housing "trade-in".
Why should the house be "traded-in"? Some experts believe that the recent difficulty of "new housing decentralization" is related to the poor circulation of "selling one and buying one" to improve sexual demand.
In recent years, affected by the policy, the number of second-hand houses in the Zhuhai market has risen sharply, and the number of replacement groups who sell old houses for new ones is also increasing. The number of second-hand housing listings has increased significantly, the sales cycle has been lengthened, the chain of changing houses is not smooth, and there has been a "temperature difference" between the new housing and second-hand housing markets.
For people with replacement needs, "sell one buy one" is usually a common practice, but due to the problems faced by second-hand housing transactions such as cumbersome processes and long cycles, the second-hand houses in the hands of the housing replacement group cannot be sold, resulting in insufficient funds to achieve "buy one".
When it is difficult to realize the self-circulation of the market, all localities began to dredge the channels for housing exchange, and the housing "old for new" policy came into being. The purpose is to open up the transaction chain of primary and second-hand housing and release the demand for improved housing.
In Zhuhai, the exploration of "trade-in" in the property market has already begun. It is reported that since the beginning of this year, Huafa Group has vigorously promoted the direct acquisition of second-hand houses to facilitate new housing transactions. As of May 6, HUAFA's "trade-in" activity has covered more than 350,000 people, more than 2,100 customers who intend to understand the replacement activity, and more than 350 suites have entered the practical process of house inspection, evaluation and transaction.
On the other hand, LVGEM Group also launched the "Trade-in Month, with a maximum subsidy of 500,000 yuan", which is a great discount, highlighting the determination of real estate developers to help accelerate the sale of old houses. It is understood that since the launch of the "trade-in" activity of LVGEM Xiyue Bay Project, the number of on-site house visits has increased by nearly 100%, and the transaction amount during the "May Day" period has exceeded 120 million yuan.
However, it remains to be seen whether housing can be synchronized with one click to "trade in the old for the new". In order to truly achieve the expected goals, one of the key points is to start from the needs of consumers, so that the "changer" can benefit, and this needs to start from reducing the replacement cost and replacement cycle, truly meet the desire of consumers to upgrade their housing, and stimulate their internal motivation.
It can be seen that "trade-in" is related to all walks of life and thousands of households, which not only requires the layout of the whole chain, but also the linkage of various departments to finally achieve multi-party benefits.
It is worth looking forward to the fact that Zhuhai may have a series of measures with greater intensity and more perfection in the future. Through "renewal" and "replacement", Zhuhai is accelerating towards a "new" round of trillion-dollar cities, injecting "new" vitality into high-quality development.
【Topic Researcher】Liu Zixin
【Planning】Wu Zhiyuan
【Author】 Liu Zixin
[Source] Southern Press Media Group Southern + client