Furniture is replaced with a new one.
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. Driven by the news, the relevant furniture sector stocks have continued to be active recently, and most industry insiders expressed their optimism about the future of the furniture industry. Stimulating domestic demand and encouraging furniture consumption will undoubtedly make the furniture enterprises struggling in the harsh winter ushered in the spring of hope.
Zhu Jia, an analyst at CITIC Securities, believes that domestically-listed furniture brands that are market-oriented are expected to benefit first, including Sophia, Meike, Del Home and Yihua Wood.
Charcoal in the snow
In the past few years, the days of the furniture industry have not been good, even Guangdong, which is the leading market in the country, is hard to escape.
Although the failure of Guangdong furniture companies in the past two years has not come from official authoritative data, according to a well-informed person in the industry who is unwilling to announce their names in the media, more than 200 companies in Dongguan, which are familiar with him, have closed down. Shenzhen and Foshan, which are also the major cities for furniture manufacturing, have closed 100 and 70 companies respectively.
For this year's furniture industry, Wang Ke, president of the Guangdong Furniture Association, pessimistically predicted that "in the first half of 2012, we will face a very serious reality. SMEs will encounter more difficult situations, especially in the first and second-tier markets. A group of enterprises will be eliminated, and a group of enterprises will be merged by large enterprises. What 'sunshine', 'everyday will be very good', these should not be seen next year." This is more specific, More alarming warnings.
Furniture industry or 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 the relevant research report of Industrial Securities, 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 salesâ€. The important magic weapon for furniture companies to resist the cold current of the industry.
Merchants respond positively
So far, the Beijing Municipal Commission of Commerce has not yet issued a specific timetable for the implementation of furniture trade-in. However, some companies have shown a positive attitude towards the trade-in of furniture. Actually, the family has started piloting a trade-in event in Beijing last September.
The staff of the actual home told reporters that consumers who purchase new furniture can hand over the old furniture to the store for recycling. No matter how much the old furniture is, the old and new, it will be discounted at 5% of the new furniture turnover. Deductible.
Furniture stores have been well received by consumers since the implementation of trade-in, and sales have increased. Wang Linpeng, president of Beijing Real Home Investment Holding Group Co., Ltd., said that the old-for-new trade is actually doing advertising and promotion. While actually solving the practical difficulties of the citizens, the furniture store has also gained more benefits.
Wang Linpeng believes that a company has an annual advertising and promotion budget, and the cost of advertising and promotion is the same as the old-for-new. We will help consumers solve practical difficulties and expand market sales.
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