In early February, the Beijing Municipal Commission of Commerce revealed that the news that the pilot furniture was “trade-in†this year triggered the attention of the home industry. As a home store that successfully implemented the “old-for-new†furniture last year, the home of the family was first included in the eyes of the government and the media. Wang Linpeng, the president of the Real Home Group, also became the focus of most people interviewed this month. This week, the Beijing Morning Post reporter conducted an exclusive interview with Mr. Wang on the difficulties of implementing the “old-for-new†furniture, and learned about the Wang-style thinking of the “old-for-new†business.
Problem: the recycling of old furniture is complicated
Initiative 1
Reuse of waste into treasure
General Manager Wang said that the difficulty in recycling is the biggest problem facing furniture “trade-inâ€. The recycling of old furniture includes various processes such as disassembly, handling, storage and handling. Moreover, the old furniture that was recycled mostly consists of dilapidated sofas, spring-broken mattresses, and panel furniture that has been broken into pieces. The pile of these old furniture also occupies a large area of ​​the warehouse.
To this end, the actual home has also invested a lot of money in the recycling of old furniture, including the development of old furniture recycling programs, the establishment of old furniture recycling centers, recycling of recycled furniture. For solid wood furniture and glass furniture with good quality, after cleaning and trimming, they will be sent to the old goods market for resale. For older furniture, the home will establish an old furniture recycling center, dismantle the old furniture, and send it to the relevant recycling agency for recycling and recycling according to different materials.
Wang Linpeng said that metals and glass are easier to recycle, and leather and sponges will be sent to specialized institutions for power generation. The compressed sheets that were previously considered to be the most difficult to recycle are crushed by specialized agencies to make building bricks and lay the ground, not only strength but also Up to standard and light weight.
Difficulties: subsidy methods and redemption categories are difficult to "one size fits all"
Initiative 2
Subsidize and limit categories according to the proportion of new product turnover
According to the public statement of the relevant person in charge of the Beijing Municipal Commission of Commerce, in the selection of furniture “old-for-new†pilot enterprises, the size of the enterprise and the degree of chaining will be considered. In addition to the pilot scheme for the handling and recycling of old furniture, how to subsidize is also required to be formulated. Detailed plan. The question of who pays for subsidies and the amount of subsidies is also one of the factors that can successfully implement the “old-for-new†of furniture, which affects the hearts of many consumers and furniture sales companies.
Unlike other stores that promote furniture “trade-inâ€, the way to subsidize old furniture is different. The practice of “replacement of furniture†in actual homes is to subsidize the percentage of new furniture turnover. Specifically, consumers who purchase new furniture can receive a cash subsidy of 5% of the transaction amount, which is entirely borne by the actual home. Moreover, custom products such as kitchen furniture, bathroom furniture, cloakrooms, and most imported furniture brands are excluded from the threshold of “trade-inâ€. Mr. Wang said that the customization of products and imported products is more difficult to operate with “new-for-newâ€. Actually, the family is also discussing how these categories of furniture products can be added to the “old-for-new†team.
Difficult problem: the response to the merchant is not active
Initiative 3
Actually bear all 5% of the subsidy
When the home was the first to introduce “old-for-newâ€, the attitude of the furniture merchants was not very positive. Some merchants said that “originally our trucks came out of the factory to load five households of furniture. Now considering the need to recycle old furniture, a truck has more than three pieces of furniture at the top, resulting in an increase in freight. The original workers are only responsible for delivery. Now, it is necessary to dismantle and carry the old furniture, and not to add money to the workers, so the labor costs have increased." Some merchants said that "factory distribution is based on the delivery location, such as this car is Going to the subscribers in Daxing District, South Fifth Ring Road; that car is going to Fangshan. Now all the recycled old furniture has to be pulled to the northern storage location designated by the actual home, and the cost has increased.†Some merchants even said to consumers: “You can participate in furniture trade-in, the discount is equivalent to 5% off, but our company’s own promotion is 10% off.â€
"There are short-sighted operators who hold these ideas." Wang said that the successful implementation of the first round of furniture "trade-in" has enabled many merchants to see results and their attitudes have changed greatly. The most important thing is the support of the home of the family: in order to increase the enthusiasm of the merchants to participate in the "old-for-new" of the furniture, the consumers who purchase the new furniture are subsidized according to the 5% of the transaction price, all of which are borne by the actual family. Since the furniture was "replaced with the old" from the home of the family, it has already assumed a subsidy of 5.834 million yuan.
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