Financial Investment News reporter Xue Lei
Recently, the ** Financial Committee held a meeting to make detailed arrangements for promoting the trade-in of consumer goods. The meeting said that accelerating product upgrading is an important measure to promote high-quality development, and it is necessary to encourage and guide the renewal of equipment and the trade-in of consumer goods on a new scale.
Hong Yong, an expert from the think tank of the 50-person forum on the integration of data and reality in China, told the Financial Investment News reporter that from a macroeconomic perspective, this policy can not only stimulate short-term consumer demand and effectively stimulate domestic demand, but also help promote consumption upgrading, accelerate the elimination of backward production capacity, and promote the optimization and upgrading of industrial structure, which is of great significance to achieving high-quality economic development.
It will promote consumption upgrading and industrial upgrading
Promoting the trade-in of consumer goods will help unleash the potential consumption demand of residents, especially the demand for improvement, and further stimulate the vitality of the consumer market. On the one hand, high-quality new products enter the market, satisfying consumers' pursuit of a higher quality of life; On the other hand, by lowering the cost threshold for replacing new products, it boosts consumers' purchase intentions, so as to tap and activate the depth and breadth of the consumer market. Hong Yong said.
In Hong Yong's view, consumers are more willing to replace old products and buy new products after receiving appropriate subsidies and incentives, thereby driving sales growth in durable consumer goods industries such as home appliances and automobiles. For the relevant industrial chain, upstream raw material merchants, manufacturers, retailers and downstream dismantling enterprises will benefit from the implementation of this policy, forming a complete circular economy chain and promoting the coordinated development of the entire industrial chain.
Zhu Keli, executive director of the China Information Association and founding president of the National Research Institute of New Economy, also told the Financial Investment News reporter that the trade-in policy measures are not only an important measure to promote consumption, accelerate product upgrading, and promote high-quality development. With the economic development and the improvement of people's living standards, consumer demand is also constantly upgrading, the trade-in policy can encourage consumers to replace old products, buy more environmentally friendly, energy-saving, efficient new products, so as to promote consumption upgrading and industrial upgrading, but also can drive the growth of investment in related industries, and promote the sustainable and healthy development of the economy.
The home appliance and automobile sectors are "rising".
In view of the policy measures to promote large-scale equipment renewal, the most benefited will be high-end equipment manufacturing, new energy, information technology and other industries. The products of these industries are updated quickly, the technical content is higher, and the market demand is also relatively strong. Driven by policies, companies in these industries are expected to gain more market opportunities and profit margins, so as to achieve faster development. Especially for those enterprises that have the ability to innovate independently and master the core technology, they will benefit more from the opportunities brought by the policy. Zhu Keli said.
The reporter of the Financial Investment News noticed that affected by the policy, on February 26, the popularity of the durable consumer goods sector, which is dominated by automobiles, home appliances and machinery, increased significantly. On February 27, the home appliance sector continued to increase the daily limit of Haidar, Aishida, and Dechang shares, and Tianyin Electromechanical and Hisense Household Appliances rose by more than 7%; The auto sector rose by more than 3% on the day, with Jiezhong Technology, Hitech, Zhengqiang Shares, Zhaomin Technology rising to the limit, and Jinzhong Shares and Sunny Seiko rising to the top.
After the release of the policy, it has aroused the comprehensive attention of the home appliance industry, and various enterprises in the home appliance industry chain are gearing up, saying that they have the ability to provide high-quality home appliance products for consumers and meet the needs of home appliance replacement in various scenarios.
In late February, Guangzhou Gree will promote trade-in activities in 100 mature communities in Guangzhou and Foshan. Suning Tesco opened the "National Rejuvenation Festival" on February 26 and will last until March 17.
In order to give back to the "bosom friend fans" who have always supported and trusted Dongfeng Citroen and Dongfeng Peugeot, DPCA has launched the "Whole Network Looking for Old French Car Owners" Bosom Friend New Season, which replaces Versailles C5X and 408X, with a maximum of 850,000 yuan subsidy and other courtesies; JD Auto joined hands with nearly 50 auto brands and second-hand car trading platforms to jointly launch the "JD Auto Trade-in Platform".
Related products will move towards green and intelligent
From the perspective of specific areas, the ** Financial and Economic Committee meeting pointed out that it will focus on encouraging traditional consumer goods such as automobiles and home appliances to trade in the old for the new, and promote the trade-in of durable consumer goods.
According to Hong Yong's analysis, in the policy of promoting large-scale equipment renewal, the automobile manufacturing industry, home appliance manufacturing industry, information technology equipment manufacturing and other related industries have a fast product iteration speed, and technological renewal has a significant role in promoting industrial development.
Hong Yong believes that after the implementation of the policy, the production and business model of enterprises may undergo adaptive changes. Enterprises need to adjust the layout of product lines according to policy guidance, increase investment in research and development of green and smart products, and strengthen the construction of after-sales service network to ensure the smooth progress of the "trade-in" process. In addition, enterprises also need to pay attention to the first link of waste goods, and may need to cooperate with professional enterprises to build a sustainable closed-loop business model.
Zhu Keli said that under the promotion of policies, consumers' motivation to replace old products will be greatly enhanced, and the market demand for new products will be further improved. This will directly drive the development of the relevant industrial chain, including product design, manufacturing, sales channels and other links. Especially for high-tech industries and green environmental protection industries, the trade-in policy will bring a broader market space for them.
In recent years, green lifestyles have risen rapidly, and the concept of green consumption has gradually entered the hearts of the people.
According to the survey data released by China CITIC Bank, 95% of respondents recognize low-carbon lifestyles and actively practice green consumption actions. According to data from the National Bureau of Statistics, in the first half of 2023, the retail sales of low-energy household appliances and audio-visual equipment of units above designated size increased by more than 20% year-on-year; According to data from the China Automobile Association, in the first half of 2023, the sales volume of new energy vehicles will be 37470,000 units, a year-on-year increase of 441%, with a market share of 283% or more. According to data from the Ministry of Commerce, in the first five months of 2023, the sales of home appliance trade-in increased by 83% year-on-year7%, trade-in has become the mainstream choice of green consumption of household appliances.
Finance**
Trade-ins will stimulate cascade consumption
Does the trade-in policy have an impact on the second-hand economy?
After all, the trade-in and second-hand economy are complementary industries, when consumers choose to return the old goods and obtain more preferential ** to buy new products, there will be fewer people to buy second-hand products, which will lead to the decline of second-hand goods, and the competition in the second-hand market will intensify.
After all, if you can buy a new product for about the same amount of money, who will continue to use the old one? I believe that most consumers are more inclined to choose trade-in rather than buying second-hand goods in the same situation.
Of course, this does not mean that the second-hand market does not have a chance to continue to develop.
Take Germany's second-hand car market as an example, at the beginning of last year, affected by Tesla's price cut, Germany's second-hand car ** also declined, but it also promoted the transaction volume of the second-hand car market, and the sales of second-hand cars increased, and the overall was still profitable.
The reason for this is that there is still a difference between the demand for low-priced used cars in the market and the "old" inventory of dealers, which is still much higher. Moreover, most of the current market demand is concentrated in the lower ** small vehicles, according to the observation of the German used car auction company BCA, German car dealers are most interested in the purchase of new used cars, regardless of the brand and model.
Obviously, although the new products are cheaper, the second-hand goods will also become cheaper, and the consumers who buy second-hand cars may not be a group of people who buy new cars at all. Trade-in stimulates cascade consumption, not the business of grabbing the second-hand market. Consumers can take their seats according to their own consumption levels and consumption habits, and promote the joint expansion of the market for new goods and second-hand goods.