Shandong’s ＂trade-in＂ activates new kinetic energy of consumption

Promoting the trade-in of consumer goods is an important measure to accelerate the construction of a new development pattern and promote high-quality development. In March this year, the State Council issued the Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods. Subsequently, the Ministry of Commerce and other 14 departments issued the Action Plan for Promoting Trade-in of Consumer Goods, which clarified the specific tasks of trade-in of consumer goods.

Shandong Province has thoroughly implemented the decision-making and deployment of the Party Central Committee and the State Council’s trade-in action, and implemented the requirements of the action plan. The trade-in of consumer goods has continued to heat up and achieved remarkable results. Since July, in order to deeply report on the implementation of the trade-in policy for consumer goods in Shandong Province and tell the good story of trade-in for consumer goods in Shandong Province, the Shandong Provincial Department of Commerce and International Business Daily have jointly launched a series of reports on the "observation of trade-in for consumer goods", and this station has come to Linyi, Shandong Province-

Linyi, as the most populous and largest city in Shandong Province, enjoys favorable policies such as the construction of national county-level commercial system and the support of provincial-level smart business circle, with high consumer market activity and great space potential. Since the national and provincial policies on the trade-in of consumer goods have been introduced one after another, Linyi City has been based on the reality, and the policy research and implementation have gone hand in hand, and all the work has achieved remarkable results.

■ Our reporter Li Xiping/Li Kaiyuan Wang Longjun Sun Tianshu Zhang Zhaoyu Zhang Zhining

Linyi city insists on boosting consumption as the starting point and motive force, according to the relevant policies of the central and provincial governments, firmly grasps the key points of "changing cars for energy, changing home appliances for wisdom, and rejuvenating kitchen and bathroom", cultivates the working mechanism of "grafting resources, sinking the center of gravity, interactive linkage and bridging operation", and strives to play the positive roles of "effective market" and "promising government".

"Trade-in" activates new kinetic energy of consumption. As of August 7th, the number of applications for automobile trade-in subsidies in Linyi City was 13,235, ranking among the top cities in China. By July 31st, the city had sold about 334,600 new machines (four machines and one brain), with a sales amount of about 1.16 billion yuan, and about 1.33 million old machines were recycled.

Head geese lead yan zhen to fly.

—— Create a "provincial sample" for automobile replacement.

In 6 days, 53 automobile brands ordered 8,500 automobiles, which boosted automobile consumption by 954 million yuan …

A set of vivid figures is a solid footprint left by Yuantong May 1 Auto Show in the promotion of trade-in of consumer goods in Linyi City. In less than a week, the consumption amount of an automobile comprehensive service park is almost 1 billion yuan. What is even more commendable is that this fiery has been going on from the May 1 holiday to the present.

Recently, when entering the Yuantong Automobile Plaza in Linyi, publicity information such as trade-in billboards and exhibition stands can be seen everywhere. The main entrance of each automobile business park is decorated with policy publicity materials for the project, and posters of trade-in and scrapping subsidies are posted at the entrance of the exhibition hall and after-sales maintenance entrance of each 4S shop.

Despite the scorching sun, the citizens who come to test drive and buy cars are still in an endless stream, and the parking lot outside the door is "hard to find". "It doesn’t look like the traffic that should be there on weekdays at all." Even Fu Yuanxing, the sales director of Wuling New Energy, who has been in the business for many years, rarely sees such a hot scene.

Mr. Han, who is in his thirties, lives in luozhuang, Linyi City. After driving a Volkswagen Santana car for 14 years, he finally made up his mind to replace a main model of Wuling New Energy named Binguo.

"The scrapping subsidy is too strong, and it is hard not to be tempted. In addition, the staff of Wuling 4S store has been calling to publicize relevant policies, and they came to the store to pick up the car today." Mr. Han can’t hide his inner joy. "There is no need to take care of anything when you drive an old car into the store. From the application for scrapping subsidies to the handling of various procedures, the staff provides full service, which is worry-free and labor-saving."

A few days ago, the National Development and Reform Commission and the Ministry of Finance issued the "Several Measures on Strengthening Support for Large-scale Equipment Renewal and Trade-in of Consumer Goods", which explicitly requested to raise the subsidy standard for automobile scrapping and renewal, and the upper limit of the subsidy standard was raised to 20,000 yuan.

In the context of the ongoing price war in the domestic automobile market, such car purchase subsidies are not a small amount for consumers. Take Mr. Han as an example. This new energy vehicle with a guide price of 75,800 yuan needs only 45,800 yuan on the road after a series of subsidies such as 20,000 yuan national scrapping subsidy, 3,000 yuan manufacturer subsidy and 4,000 yuan replacement.

Since the Action Plan for Promoting Trade-in of Consumer Goods was released on April 24th, as of July 31st, Yuantong Group has sold a total of 27,781 vehicles, up 13.35% year-on-year. Among them, from May to July, a total of 2,276 vehicles were scrapped and sold for new ones, with a monthly average increase of 925.23% compared with that of scrapped cars in April. The trade-in activity has achieved initial results in promoting new car sales. From January to July, the Group sold a total of 53,393 vehicles of various types, up 13.07% year-on-year, and the replacement penetration rate was 25.12%, up 22.96% year-on-year.

Leading by leading enterprises in the industry, the cluster enterprises in Qian Fan are driven to compete.

According to the data of Linyi Municipal Bureau of Commerce, from January to July, Linyi City held 55 series of activities to promote consumption, which boosted consumption by about 2 billion yuan. Among them, the 31st Yuantong Auto Show was listed as the second stop of the 2024 Automobile Consumption Festival series by the Ministry of Commerce. As of August 8th, Linyi City has received a total of 13,563 applications for automobile trade-in, ranking first among prefecture-level cities in China, including 9,385 new energy vehicles and 4,178 fuel vehicles. Automobile trade-in has boosted the consumer market to set off a new round of "trade-in".

Building a whole industry chain

-a glimpse of the prosperity of the home appliance market from the dismantling.

At 6 o’clock on the morning of August 8, more than 60 trucks loaded with old household appliances such as used refrigerators and televisions stopped at Shandong Zhonglv Resources Recycling Co., Ltd. in turn, and more than 10,000 used household appliances were dismantled and recycled here every day.

Unloading, disassembling, product sorting, weighing, warehousing, loading … In Zhonglv Resources Recycling Co., Ltd. located in Linyi City, waste TV sets, refrigerators, washing machines, air conditioners and computers were scanned and entered into the information, and then sent to the dismantling area in turn. "At present, the company has 8 domestic leading dismantling lines for waste electrical and electronic products, with an annual dismantling capacity of 2.8 million units." Chen Xuguo, head of the company, said.

Since May, the company has recovered 600,000 sets of various electrical appliances, up 36% year-on-year. Thousands of tons of plastic, steel, non-ferrous metals and other products were obtained by dismantling waste electrical appliances, realizing turning waste into treasure, appreciation and efficiency improvement.

Relying on the advantages of a perfect household appliance manufacturing system and a distribution center for household appliances, the recycling network of waste household appliances and other renewable resources in Linyi City has been continuously improved. There are 2,669 recycling enterprises registered on the platform of the Ministry of Commerce, 13 sorting centers, about 14,600 recycling outlets and about 100,000 employees. At the same time, internet plus online recycling platform has been actively developed, with more than 6,000 online recycling outlets, and the coverage rate of recycling outlets in the main city has reached 100%.

Since the introduction of the trade-in policy for consumer goods, Linyi Municipal Bureau of Commerce has actively publicized it through official websites, WeChat official account and other channels, and conducted special communication and research on major household appliance circulation enterprises, so as to further understand, master and promote the consumption of household appliances in the city and create a strong atmosphere of trade-in for household appliances. By July 31st, the city had sold about 334,600 new machines (four machines and one brain), with a sales amount of about 1.16 billion yuan, and about 1.33 million old machines were recycled.

On May 25, lanshan district held the 2024 Kyushu Household Appliances Trade-in for the New, which attracted more than 500 people, distributed more than 300,000 yuan of coupons, and sold more than 970 household appliances with a sales amount of more than 3.5 million yuan. On May 21st, yinan county held the activity of green circulation and rejuvenation of household appliances in Yangdu Daji. About 50,000 people participated in the activity, and more than 540 household appliances were sold, with a sales amount of 4 million yuan … Since this year, the city’s business system has cooperated with more than 70 appliance stores in the city to carry out the activity of "Household Appliances Trade-in Consumption Season". At present, more than 50 home appliances trade-in activities have been held to promote consumption, inciting market entities such as Golden Eagle Home Appliances and Kyushu Home Appliances to invest in trade-in subsidy funds in 2000.

Seeking internal strength and external symbiosis

-the capital of plates stimulates the new vitality of home improvement consumption.

The improvement of consumption is inseparable from the synergy between supply and demand. With the deepening of "trade-in", key home furnishing enterprises in Linyi have made great efforts to reform and revitalize the old, and higher quality services and greater subsidies have become the two major focus points, effectively releasing the potential of consumer demand.

Shopkeepers in Linyi, EasyHome, promoted the three marketing IP’s of "Finding EasyHome with Difficulties", "Trade-in Old Houses for New Faces" and actively promoted the action of "Trade-in Old Houses for New Faces" into the community. Through free home repair and maintenance of household products, free handling of large items, subsidies for collecting old ones and exclusive subsidies for the community, they increased the value-added services for community owners, and the preferential treatment of "service" and "subsidy" was implemented at home. Up to now, it has continuously served six communities including Xingang Longting, Xingyuan, Xingguanyuan and Champs Lido, covering more than 7,000 owners. In addition, provide free design and free housing measurement for the owners of old houses, and provide temporary housing subsidies of up to 6,000 yuan.

Yijing Lijia Group relies on many years’ precipitation and massive resources of old customers, and uses the measures of "trade-in, high subsidy to 1000 yuan" and "furniture-specific customized service (furniture maintenance/repair/mite removal, etc.)" to reach customers through many ways, such as old customers’ telephone call back, community presence, community operation and online private domain traffic, and the success rate of old customers’ repurchase is about 7%.

On August 22nd, another grand event "Exhibition" was wonderful. 2024 Shandong Consumption Promotion Year Shandong Furniture Consumption Festival —— The 22nd China (Linyi) National Furniture Purchasing Festival and the 4th Linyi Furniture Expo opened in Lanhua International Brand Furniture Expo Center, and more than 200 representatives from all over the country attended the opening ceremony. The four-day procurement festival covers an exhibition area of nearly 400,000 square meters, with more than 1,000 furniture brands appearing on the same stage. The exhibits cover tens of thousands of single-item styles including soft furniture, solid wood furniture, two-hall furniture, office furniture, tea space furniture, hotel furniture, mahogany furniture and steel-wood furniture, providing buyers and consumers with more choices.

On the opening day, the scene was crowded and lively. Mr. Wang, a citizen, is stuffed with all kinds of leaflets. "It is so convenient and eye-opening to attend such a large-scale home fair at home!" He said. Yang Xuewen, general manager of the market of Lanhua International Brand Furniture Expo Center, said: "In order to implement the government’s trade-in arrangement, our group has widely mobilized major manufacturers to implement various concessions such as trade-in specials, package discounts, and full lottery, with a profit margin of more than 50 million yuan."

In recent years, the exhibition scale, brand number and exhibition effectiveness of China (Linyi) National Furniture Procurement Festival have been improved year by year. At present, it has become a beautiful business card for Linyi and even the whole country, and has played an important role in promoting the high-quality development of Linyi furniture industry and convention and exhibition industry. At the same time, the holding of the Furniture Purchase Festival is not only a concentrated display of Linyi furniture industry, but also a concrete action to actively respond to the call of the state to expand domestic demand, boost consumption, and promote the high-quality development of the home furnishing industry and the rejuvenation of home decoration.

The effective linkage between industry and market, supply and demand has stimulated the vitality and endogenous power of Linyi’s "home consumption" market. As of mid-August, the city has mobilized market players to hold more than 30 (times) home improvement kitchen and bathroom rejuvenation and consumption promotion activities, achieving sales of about 500 million yuan; Held the 8th China (Linyi) Whole House Customized Boutique Exhibition, the 4th Linyi Green Building Materials Industry Expo and other 13 home building materials exhibitions, with an exhibition area of 334,000 square meters, 3,818 exhibitors and 408,000 visitors, with a total transaction volume of 7.85 billion yuan.

"Five resources" are fully empowered

-the activation potential of quantity, quality and strategy

"Trade-in" benefits both enterprises and the people, making more and more consumers feel the benefits of "real money and silver" and further boosting consumer confidence.

Since late February, with the gradual improvement of the trade-in policy system at all levels, Linyi City, based on the underlying logic of "policy+activity", has promoted the trade-in of consumer goods in an orderly manner and achieved a leap in the overall planning of market resources. On April 30th, Linyi successfully held the 2024 China Automobile Consumption Festival (Linyi Station) Linyi Consumer Goods Trade-in Action and the launching ceremony of the 31st Yuantong May 1st Auto Show, which penetrated the "five resources" of finance, finance, platforms, manufacturers and merchants, and launched a "gift package" with a total of nearly 500 million yuan.

Vigorously promoting the trade-in of consumer goods will help to activate the "spring water" in the consumer market. In this round of trade-in activities, Linyi City has made every effort to cultivate and expand the business entities of trade-in activities, focusing on the cooperation between government and enterprises, actively organizing the participation of automobile, household appliances and home improvement industries, and fully promoting the action of upgrading and expanding consumption.

In the dimension of "quantity", we should make greater efforts to organize consumption promotion activities. From the middle and late May to the end of the year, cities and counties will organize enterprises to launch more than 130 sales promotion activities of household appliances trade-in and home rejuvenation, including more than 60 activities directed or sponsored by the competent commercial authorities; It is estimated that it will directly drive the sales of household appliances and household consumer goods to more than 1 billion yuan. While doing a good job in granting subsidies for car trade-in, we will hold car consumption promotion activities throughout the year. The city plans to hold 217 events, including 6 at the municipal level and 211 at the county level, including 30 key events; It is planned to boost the sales of 50,000 vehicles, with sales of about 6 billion yuan.

In the "quality" dimension, create new consumption scenarios with higher quality. On the one hand, guide market entities to innovate the supply of goods and services for commercial blocks, quarter-hour convenient living circles, old residential areas and other carriers, especially guide home appliances and home sales enterprises to launch set of scene services, and guide market entities such as automobiles, home appliances and home improvement to explore trade-in cooperation, make full use of the framework effect of upgrading, and guide and stimulate residents’ demand for upgrading a better life; On the other hand, we will continue to build the brand of "Enjoy Langya Tesco Linyi" government to promote consumption, form a multimedia matrix of "sound", "screen", "newspaper" and "net", coordinate news media channels such as mainstream media and new media at all levels, carry out online and offline promotion and policy interpretation, and make a breakthrough, fragmentation, series and multi-angle for "Linyi consumption".

In the dimension of "policy", a higher level of precise policy. We will implement policy arrangements at all levels and solidly promote the trade-in of automobiles and household appliances. Improve the recycling system of waste materials, scientifically and rationally arrange the recycling industry of waste materials according to the principles of industrial agglomeration, complementary advantages, dislocation development and demonstration, and change the idle "stock" into the "increment" of development.

"In the next step, Linyi City will guide market players to increase subsidies and vigorously promote the trade-in of consumer goods; Do a solid and efficient job in reviewing the application platform for automobile scrapping and renewal subsidies to ensure that the people can get benefits; Make good use of provincial-level incentive funds to subsidize the related expenses of commercial circulation enterprises, large-scale production and retail enterprises and e-commerce enterprises sinking into towns and below markets to promote consumption activities. " The relevant person in charge of Linyi Municipal Bureau of Commerce said.

A big economic province is brave enough to take the lead

—— Work continues to be at the forefront of the country.

Recently, the Shandong Provincial Department of Commerce has fully implemented the decision-making arrangements of the CPC Central Committee and the State Council on supporting large-scale equipment renewal and consumer goods trade-in, actively connected with each other in accordance with the latest work arrangement of the provincial party committee and the provincial government on consumer goods trade-in, accelerated the pace of work, and pushed all work to continue to be at the forefront of the country.

By the end of July, consumers in Shandong Province had submitted 75,987 applications for automobile scrapping and updating on the national automobile trade-in platform, and 36,496 applications were approved, ranking among the top in the country. According to the survey conducted by the Renewable Resources Association on the dispatching of qualification dismantling enterprises, the province recovered 6.92 million old household appliances with "four machines and one brain" and sold 3.778 million new household appliances with a sales volume of 11.36 billion yuan.

Fast pace, practical measures, and comprehensive deepening of work.

Intensify efforts to promote the implementation of the work. Shandong province put forward supporting policies in two aspects: supporting the trade-in of consumer goods and strengthening activity planning, which were included in the third batch of policy list of the provincial government. Strengthen activity planning, and the provincial government and CCTV jointly held the launching activity of "2024 Shandong Summer Trade-in Consumption Season" in Yantai; Provinces, cities and counties will jointly hold three hundred activities, namely, "100 new energy vehicles going to the countryside activities", "100 trade-in activities for consumer goods" and "100 key consumption promotion activities", to further enrich the scene of trade-in activities for consumer goods.

Make efforts to expand the scope of publicity. The Provincial Department of Commerce has closely communicated with the Provincial Bureau of Big Data, and opened a "Trade-in for Consumer Goods" area on the "Love Shandong" APP, and will conduct policy publicity through videos, animations, maps and other forms to improve policy awareness and benefits. At the same time, we will use the central media to expand the publicity of trade-in of consumer goods in Shandong Province. Organize mainstream media and new media in the province to hold publicity and promotion work meetings, improve the publicity and cooperation mechanism of political media, increase publicity, and make good policies benefit more consumers.

Great efforts, early planning, and increased policy coverage.

Recently, the National Development and Reform Commission and the Ministry of Finance issued "Several Measures to Support Large-scale Equipment Renewal and Trade-in of Consumer Goods", and arranged extra-long special national debt funds to support the trade-in of consumer goods. After the introduction of the policy, Shandong Province went to the Ministry of Commerce for the first time to communicate with each other, strive for national policy support, and find out the policy direction of trade-in of consumer goods.

Plan the province’s policies ahead. The first is to find out the base. According to the latest policies of the state and the Ministry of Commerce, we will further find out the financial situation and sales situation of automobiles, household appliances, home improvement, kitchen and bathroom, electric bicycles and other related fields in Shandong Province, and calculate the policy capital demand, workload and expected performance. The second is to solicit opinions extensively. Discussions were held with 16 cities, relevant departments, financial institutions, industry associations, production and marketing enterprises, etc., to solicit opinions and suggestions and enhance the effectiveness and operability of the policy. The third is to plan platform construction. Plan to promote the construction of a provincial service platform for exchanging old appliances for new ones, build a full-process, one-stop and full-life household appliance service model, form a closed loop of household appliance consumption, and improve the service level of household appliances consumption in the province.

Strong synergy, excellent resources, and continuous results.

Shandong Province continues to take the overall planning of "five resources" as an important starting point for its work, and promotes the continuous increase of preferential synergy of "five resources". Shandong province received state support for the "two new" work funds of 11.5 billion yuan, ranking first in the country; Cities and counties co-ordinate financial funds of nearly 500 million yuan, key banks such as ICBC and Agricultural Bank of China issue related preferential loans of over 41.4 billion yuan, preferential funds of key automobile manufacturers and merchants of over 820 million yuan, and funds for promoting consumption issued by key e-commerce platforms and home appliance manufacturers of over 130 million yuan, so that more and more real "real money and silver" concessions can benefit more consumers.

Shandong Province fully embeds the trade-in of old products into the key consumption promotion activities in the "Consumption Promotion Year", and continues to promote the "five advances" activities of trade-in in rural areas, communities, platforms, government and enterprise units and progress meetings. From January to July, provinces and cities held 369 consumption promotion activities, and enterprises participated in more than 42,000 (times), which boosted consumption by 6.1 billion yuan.

In the next step, the Shandong Provincial Department of Commerce will pay close attention to the direction of national policies and introduce the implementation plan as soon as possible; Make full use of policy funds and continue to enlarge the synergy of resources; Hold trade-in promotion activities and increase publicity and guidance; Give full play to the leading role of trade-in of consumer goods and promote the continuous improvement of consumption in the province.