Beijing started furniture trade-in

The reporter was informed yesterday that the Beijing Furniture Replacement Pilot Project has started bidding. The tenders include furniture sales enterprises, renewable resource recycling enterprises and waste pollution-free treatment enterprises. People familiar with the matter expect that the policy will be implemented as early as the end of October, and the subsidy ratio will be between 5% and 10% of the new product. However, the policy duration will be shorter than expected, and the bidding documents show that the service time of the winning bidder is only one month. According to the "Tender Notice for Beijing Furniture Replacement Pilot Project" on the website of the Municipal Finance Bureau, the "Beijing Furniture Replacement Pilot Project" led by the Beijing Municipal Commission of Commerce will be openly tendered from September 19, and no more than 6 will be determined through open tendering. Furniture sales enterprises, no more than 5 renewable resource recycling companies and 1 waste pollution-free treatment enterprise. According to relevant sources, the bid opening time is October 10th. After selection and publicity, the policy may be implemented at the end of October or early November. Yu Xiusu, vice president and secretary-general of the Beijing Furniture Industry Association, said that furniture trade-in was originally tried by companies such as the Real Estate and then piloted in other regions. “If the pilot is successful, this policy may be promoted nationwide.” Yu Xiusu also mentioned that the original plan for the policy lasted for half a year, but the pilot time will be shortened due to the trade-in for the purpose of seeking experience. The bidding announcement mentioned that the service time of the winning bidder is one month. However, the proportion of subsidies that consumers are most concerned about has not yet been finalized. Some insiders expect the subsidy ratio to be between 5% and 10%. At present, many companies including Real Home, Jimei Home, Lan Jingli and Red Star Macalline have carried out or are undergoing furniture trade-in activities. Some of the above companies have already announced bids for this project. Yu Xiusu also said that merchants who have tried to trade in the past may be given priority in the bidding process. The reporter learned that the process of replacing the furniture with the old one is similar to the process of the home. When the consumer goes to the store to make a purchase, the merchant picks up the old furniture at the same time as the delivery, and subsidizes according to a certain percentage of the new furniture price. Different from the pilot of the enterprise, the government has tendered the recycling enterprises and processing enterprises, and the old furniture will be remanufactured or dismantled and incinerated by professional recycling companies and processing companies. Some insiders said that when the company used its own trade-in, the sales capacity far exceeded the old furniture processing capacity, which led to a serious backlog of old furniture in the warehouse, which had a negative impact on the corporate capital chain. Yu Xiusu said, “After the implementation of the policy, the recycling company will take away the old furniture in time, which also solves the worries of the sales company.”

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