Since the implementation of the old-for-new policy in the home appliance industry, it has achieved good results. Many companies have driven sales through activities, and consumers have also received corresponding benefits. It can be said that the trade-in of the home appliance industry is a win-win success model. Then, can the furniture industry follow the example of the “salted fish big turn†in the home appliance industry?
As early as the beginning of this year, the Ministry of Commerce and the Beijing Municipal Commission of Commerce have clearly stated their intention to promote the furniture replacement policy. The main purpose is to provide convenience and benefits for home improvement in a large number of policy housing this year and next. According to relevant media reports, Lu Yan, the representative of the 11th Party Congress of Beijing and the director of the Beijing Municipal Commission of Commerce, said that the policy of “renovation of furniture for old†will be officially announced in July. However, when I saw that I will go in July, the real policy has not yet appeared. Is it that the furniture is replaced with a new one?
Senior dealers in Beijing took the lead and set off a new hot
It is reported that after the Ministry of Commerce announced the news of trade-in, the Beijing Municipal Commission of Commerce conducted a test on the Jingcheng furniture market in order to select the first batch of pilot stores. Among them, the old stores of Beijing, such as Lanjingli and Guyan, were respectively commercialized in Beijing. The committee will conduct an interview on this matter.
Shortly afterwards, the Beijing home furnishing industry set off a wave to protect the housing and promote the furniture “clear priceâ€. “These actions have indeed brought benefits and convenience to consumers. At the same time, it has also increased the bargaining chip for the first batch of pilot units in the store.†Mr. Lu, who has been engaged in public relations work in the home industry for more than a decade, told reporters.
At the beginning of the year, when the signal of the "old-for-new" of the pilot furniture was released, the keen business immediately smelled the business opportunities and rushed out the banner of "old-for-new", hoping to use the business opportunities of the policy to boost sales. In the absence of a policy to support the “replacement of furniture†in the country, all furniture malls have made their furniture “old-for-new†in the form of their own subsidies. Therefore, multiple versions of the “old-for-new†situation have also been formed.
The market "Sparks have not been punished"
The enthusiasm of the furniture mall for the early rise of “old-for-newâ€, after several months of vigorous experiments and collisions, the heat suddenly dropped, not only the market lineup decreased, but some places even disappeared. In the Oukailong Home Furnishings Square, the reporter missed the "old-for-new" billboard. The reporter walked around the store and found no other "old-for-new" logo. Just three months ago, Ou Kailong Home Plaza also used furniture "old-for-new" as a means of promotion to boost furniture sales.
The industry believes that from the perspective of the integration of the market in these months is a substantial situation, and combined with the characteristics of the home industry, the introduction of this policy may not be so optimistic, they believe that the implementation of this policy compared to home appliances " It’s much harder to trade in the old. Indeed, the price of household products has been confusing, resulting in consumers having to pay for the virtual high, and it also affects the implementation of the furniture "trade-in" policy.
So, what is the reason for the furniture industry to have a vigorous and "new-for-new" campaign so fast?
Lack of financial subsidies, merchants' meager returns can not meet consumer expectations
Xie Yu, marketing director of Ou Kailong Group, told reporters that after they launched the “trade-in†campaign, the market reaction was not good. They only cancelled the activity for half a month. “It’s not a financial subsidy, unlike the old-fashioned home appliance. It is our merchants who are returning consumers themselves."
“Our brand can participate in trade-in and give cash subsidy according to 5% of the new furniture payment.†A brand-name furniture salesperson told the reporter. The furniture "home-for-new" program of the home of the family has been recognized by the Ministry of Commerce. This is a procedure similar to the "old-for-new" of home appliances. When a merchant sends new furniture to a consumer, the consumer hands over the old furniture that was applied for in advance to the merchant, and the merchant directly sends it to the warehouse of the actual home. After that, consumers can get a 5% recycling subsidy at the actual home store.
The reporter learned in an interview that many customers did not care about the 5% subsidy. A customer with a surname of Ma calculated an account with the reporter. The furniture for 10,000 yuan was only 500 yuan, and the furniture was given to the store. So, it is better to sell the old goods directly.
“The merchants themselves are returning to the consumers, which means the increase in the operating costs of the store. In the end, the account will definitely be counted in the merchants in the mall, and the merchants can only survive by raising the price. Therefore, the furniture is replaced with new ones. Without the support of national policies, the activities of the store will not last for too long.†The general manager of Henan Jiahe Home Co., Ltd., on behalf of the legend, commented on the “trade-in†activities in the store.
Clear price is not completely commercial, the price of the self has "moisture"
According to industry insiders, although the “clear price†is the “old-for-new†approach, it is far from thorough. Therefore, it is difficult to obtain government approval on this basis alone. According to the observations of the reporter in the past 4 months, most of the home stores that implement the "clear price" have their furniture prices shrinking to varying degrees, but on the surface, it is only the brands that have sold their prices. Unite".
According to Ms. Yang, the general manager of a well-known store, all brands have the power to change their prices, and some stores are neglected to manage, which can easily lead to sales staff selling the price. Take the store managed by Ms. Yang as an example. Although the store implemented its own “trade-in†campaign as early as the beginning of this year, it still can't avoid the threshold of merchants. “Fudge†consumers can only participate in the latest regular-priced products. activity.
Speaking of "real price", Ms. Yang said that because the store is unable to know the ex-factory price of each brand of furniture, it is even more unclear about their profit points. From this perspective, unless the current home industry can achieve the price transparency of the home appliance industry, otherwise, the government's subsidy for “old-for-new†will be difficult to formulate. So far, the home industry has not heard of any winds related to it.
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