“trade-in” furniture creates a new business model

The furniture “trade-in” began in Beijing in February this year and immediately ushered in the imitation of many cities. Activities such as “first discount and then subsidy” and “old furniture replacement” are frequently seen in major furniture stores. In the past “3·15” consumption tide, with the representative of Yuexing Home, the “old-for-new” activity was first launched in the Huangshi area. Once launched, this event was immediately highly regarded by many parties. Then, how can Huangshi consumers recognize the “trade-in” activities of their homes? Can such activities continue to be normalized and whether “new-for-new” can be used to promote a new business model.

Trade-in, increase market increase

The home market belongs to the downstream industry of the property market. Due to the influence of the property market regulation that lasted for more than a year, the overall market has been slightly tired since last year. In March of this year, major furniture manufacturers and home stores adopted various means such as discounts and promotions, and their purpose was to stimulate purchase demand and release market vitality.

“Furniture is different from fast-moving consumer goods. Every product has its own fixed life cycle. The use of a piece of furniture in Huangshi is basically maintained for 5 to 10 years.” Wu Yan, assistant general manager of Yuexing Home, said, “Restricted by the property market. The impact, the new homes and new populations sharply reduced, directly affecting the sales of the home market."

In this regard, home manufacturers and home stores have taken a different approach, starting to look at home purchases and enough people. General Wu said, "This part of the population is less affected by the policy. The motive for buying is relatively simple. If a piece of furniture is broken and cannot be used, you have to add a new one."

Analysts believe that in the context of the overall sluggish home market, the biggest significance of the "old-for-new" campaign is to stimulate the desire of consumers to repurchase and redeem the population, and increase the growth of the home market. “I may still hesitate before, but now I can enjoy the subsidy, why not?”

Replacement of old products, save money "province home"

“The home appliance trade-in activity ended at the end of the year, but I heard that Yuexing Home has introduced furniture to trade-in. Today, I specially came over to see it.” Last weekend, Chen Hao, who was preparing to move into a new home, went to the event site early. New furniture, new furniture, that is what it feels." Chen Yuxing told reporters. It is understood that Chen Hao purchased a new house in Tuancheng Mountain last year. It has just been renovated and is ready to add furniture.

Then, why is the furniture “trade-in” activity so attractive? The reporter visited many people in the industry on this issue. Chen Jian, the director of Yuexing’s home planning, believes that the furniture “trade-in” activity can be accepted by consumers in a short time. The main reason for recognition is two aspects. First, old furniture can generate value and offset the purchase of some new furniture. Second, “old-for-new” solves the trouble of dealing with old furniture.

The same old furniture, if you hand over to the recycling company, the residents on the eighth floor must be lower than the recycling price of the first floor residents, because there is a logistics cost, and if you participate in the trade-in activities, you will avoid this shrinkage.

Analysis of the current furniture "trade-in" activities, the basic operating procedures are similar, and the home store is in the "reservation of recycling" this link is very tacit understanding, and all of them are "one phone, there are professional recycling personnel on-site service."

Activity test, promote new business model

It is understood that as early as last September, the home of the old furniture processing center in Beijing, recycling and offset part of the price of buying new furniture, can be described as the first shot of the furniture "trade-in". As a result, major first-tier cities have followed suit. At one time, activities such as “first discount and subsidy” and “old furniture replacement” frequently appeared in major home stores. On March 10 this year, more than 70 furniture brands in Tianjin launched the “Pilot Project for the Trade-in Products for Old-for-News Activities”. Subsequently, the Ministry of Commerce also stated that it supports the trade-for-news activities and plans to promote them to the whole country.

Analysts believe that the signal behind a series of industry actions is: "trade-in" will become the new generation business model of the furniture industry. "Furniture products are different from home appliances, and its value is extremely complicated. To normalize the old-for-new activities, there are still many problems to be solved in the policy level." Wu said.

In the face of furniture "trade-in" activities, the focus of the entanglement between consumers and stores is the value of the old furniture. It is understood that the furniture value assessment process should consider the material, process, age, cultural connotation and many other aspects, and currently there is a lack of a standardized evaluation system.

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