2024.0415

Number of words in this article:2510, reading time is about 4 minutes

introduction ：商务部将消费品以旧换新作为今年工作的重中之重，助推汽车、家具和家装三个行业需求释放和可持续转型。广东印发相关实施方案，细化产业链各环节各主体合作协同。

** Author| ** First Finance Song Jie

What new opportunities will the three major industries of automobiles, home appliances and home improvement, kitchen and bathroom, which have entered the stock market stage, face under the stimulating policy of replacing the old with the new?

On the 14th, during the 4th China International Consumer Goods Expo, Vice Minister of Commerce Sheng Qiuping attended the theme event of green finance and sustainable development. In his speech, he said that the Ministry of Commerce has made the exchange of old consumer goods for new ones a top priority of this year's work., it will vigorously promote the replacement of "energy" of automobiles,"smart" of home appliances, and "rejuvenation" of home decoration, promote the green renewal and quality upgrading of residents 'durable consumer goods, accelerate the green and low-carbon transformation of the economy and society, and promote sustainable development.

Aiming at the concentrated release period of potential renewal demand on the three major tracks

On the 12th, the Ministry of Commerce and other 14 departments issued the "Action Plan to Promote the Exchange of Old Consumer Goods with New"(hereinafter referred to as the "Action Plan"). The document focuses on the three major tracks of automobiles, home appliances and home decoration, kitchen and bathroom, and proposes to gradually establish an effective mechanism that "it is easier to get rid of the old, and is more willing to replace the new", and strives to expand domestic demand.

The next day, Guangdong, a major province in the automobile, furniture and home decoration industries, issued the "Implementation Plan for Guangdong Province to Promote Large-scale Equipment Renewal and the Replacement of Old Goods for New Products"(hereinafter referred to as the "Implementation Plan"), detailing the specific scenarios for the coordination and trade-in of various links in the three major track industry chains.

In 2023, the number of civilian vehicles in China will reach 336 million, and the number of major categories of home appliances such as refrigerators, washing machines, and air conditioners will exceed 3 billion. The replacement of automobiles and home appliances is expected to create a market space of trillions.

Previously, Minister of Commerce Wang Wentao said at the economic theme press conference of the Second Session of the 14th National People's Congress that the automobile, home appliances, and home decoration markets are large in size, and a considerable number of products have a long service life and high energy consumption emissions. Due to long-term use, there are still certain safety hazards.

Deng Nie, managing partner in the consumer goods and retail industry of Deloitte Management Consulting, said in an interview with First Financial that compared with other consumer goods such as clothing or cosmetics, consumers are more receptive to the concept of trade-in the three categories of automobiles, home appliances and home decoration, kitchen and bathroom. At the same time, compared with other consumer goods, home appliances and home improvement products are more polluting to the environment. Nowadays, consumers are paying more attention to the green and environmental protection of the living environment.

At present, how to properly dispose of used power batteries from new energy vehicles has become a hot topic to promote the healthy development of the industry. Fujian Province is strengthening the cultivation of the new energy vehicle battery recycling industry by rewarding and subsidizing relevant enterprises. The "Implementation Plan" of Guangdong Province also mentions support policies for the scrapping and recycling of new energy vehicle power batteries and electric bicycle batteries.

Guangdong will formulate and revise recycling standards for scrapped cars, used power batteries and retired photovoltaic wind power, and promote the formulation and implementation of quality grading standards for important consumer goods such as electric bicycle batteries. At the same time, we will cultivate the industrial chain of recycling, remanufacturing, and remanufacturing product sales and after-sales service, and promote the hierarchical utilization of power batteries and other products, equipment and key components. In addition, the coordination of central and local funds will be strengthened to jointly support qualified car replacement, new energy buses and battery renewal.

Some business entities in the industrial chain are expected to expand

Cooperation among various business entities in the industrial chain will be strengthened, and some business entities are expected to expand, becoming one of the main highlights of this trade-in policy.

The "Action Plan" points out that it will cultivate and expand used car business entities and promote the branding and large-scale development of used cars. This is specifically reflected in supporting the transfer of used car sales from brokers to dealers, and encouraging automobile production companies to carry out second-hand car replacement, manufacturer certification and other businesses.

In terms of home appliances, a number of typical cities and enterprises for recycling renewable resources such as used home appliances will also be cultivated, and new models such as "Internet + door-to-door recycling" and "replacing warehouses with vehicles" will be developed. It mentioned that home appliance manufacturers should be guided to actively expand the recycling business of used home appliance through their own reverse logistics systems or entrusting third-party companies such as home appliance recycling and dismantling.

Peng Peng, executive president of the Guangdong Province Social Reform Research Association, told reporters that the implementation of relevant policies in the future should promote the production and operation of these three industries. He believes that inventories in related industries are relatively large, and destocking of bulk consumer goods will help consumption-driven economic recovery.

Strengthening cooperation upstream and downstream of the industrial chain is also a demand to promote the sustainable transformation of the industrial chain. Deng Nie told reporters that the carbon emissions generated by consumer goods and retail enterprises themselves account for a relatively small proportion of the industrial chain. When talking about the three categories of carbon emission accounting scope, we will find that the carbon emissions of consumer goods and retail industry chains are more concentrated upstream, such as agricultural production, raw materials, energy and fuels, transportation and transportation. The need to pay attention to the entire value chain is to reduce the overall carbon emissions upstream and downstream of the industrial chain.

Taking the coordination of the home appliance industry chain as an example, the "Action Plan" points out that it is necessary to improve the recycling system for used home appliances, open up the "venous circulation" blocking point for the recycling of used home appliances, and smooth the consumption cycle of home appliance renewal. Give full play to the guiding role of fiscal and taxation policies, study and introduce funding policies related to the treatment of waste electrical and electronic products, and smooth the entire chain of recycling and processing of waste home appliances.

The "Action Plan" points out that by 2027, the recycling of scrapped cars will double compared with 2023, the trading volume of used cars will increase by 45% compared with 2023, and the recycling of used household appliances will increase by 30% compared with 2023. Guangdong plans to recycle and dismantle about 800,000 scrapped cars annually by 2027, the annual trading volume of used cars will exceed 4 million, and the annual recycling and dismantling volume of waste electrical and electronics will reach 10 million units (sets).

It is difficult for the three major tracks to promote trade-in

Peng Peng told reporters that the three major tracks of automobiles, home appliances and home decoration have different difficulties in promoting trade-in. New energy vehicles are already popular and can save a lot of money compared with fuel vehicles. If there are some discounts and subsidies, the old ones can be exchanged for the new ones, and the market prospects are relatively good. Home appliances can still be used for a long time, although the effect is not so good, and residents are not enthusiastic about replacing them with new ones. If the subsidies are higher, recycling is more convenient, and new home appliances are more intelligent and attractive, the promotion effect can be reversed.

Peng Peng also believes that the replacement of old kitchen and bathroom furniture with new ones may be more difficult because it involves redecoration and comprehensive replacement. If economic recovery expectations are better and employment and income conditions are more stable, consumers will be more motivated to change clothes. Of course, large preferential subsidies will also make some consumers interested.

From the perspective of green transformation coordination of the industrial chain, Deng Nie pointed out that the current topic of green transformation coordination of the industrial chain is still hot, but at this stage, there are not many consumer goods and retail companies that can drive the upstream and downstream of the industrial chain to jointly promote sustainable development and transformation. The sustainable transformation of most enterprises remains in the initial stage of launching environmentally friendly products. At the same time, there are few examples of huge commercial returns achieved by promoting sustainable development transformation in the short term. At the same time, he also believes that in general, more and more entities will participate in sustainable development transformation and innovate in the long term. Competition between consumer goods and retail is already fierce, and enterprises need differentiated competition. Similar to AI, green is one of the main innovation directions of enterprises in the future.

The relevant documents on trade-in emphasize the role of standard guidance and support in promoting the trade-in of the three major industries. Taking the home appliance industry as an example, the "Action Plan" clearly stipulates that it will improve relevant standards for energy efficiency and water efficiency of home appliances, promote the green smart home appliance product certification system, and guide home appliance production enterprises will increase the supply of green, smart and low-carbon home appliances in accordance with relevant standards, and promote industrial upgrading and product green transformation.

Guangdong Province also stated that in the future, it will strengthen the connection of standards in key areas and encourage enterprises and institutions to actively participate in relevant international standardization activities such as quality standards, inspection and quarantine, certification and accreditation. At the same time, the pilot construction of carbon footprint certification in the Guangdong-Hong Kong-Macao Greater Bay Area will be carried out to promote the improvement of Guangdong's carbon labeling mechanism, and expand the list of "Bay Area Standards" and the scope of "Bay Area Certification" projects.

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