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Furniture trade-in results are significant, there are still details to be improved
The pilot program for furniture trade-in, initiated by the Beijing Municipal Commission of Commerce, officially concluded ten days ago. The initiative aimed to provide a practical foundation for future nationwide implementation. After a month of testing, the policy addressed some challenges faced by stores but also revealed areas needing improvement. Industry insiders have expressed mixed opinions—some welcome the national rollout, while others advocate for market-driven solutions.
Over 100 million yuan in transactions were recorded during the pilot period. A total of 17 stores across five major brands—Actual House, Red Star Macalline, Lanjing Lijia, Jimei Furniture, and Chengwaicheng—participated. Consumers received a 10% government subsidy when trading in old furniture for new purchases. According to the official website of the Beijing Municipal Commission of Commerce, furniture trade-in sales reached 106 million yuan between November 1 and November 25, accounting for 24.2% of similar furniture sales.
Most store companies welcomed the trade-in initiative. Yin Bo, general manager of Lanjing Lijia Home Plaza, stated that the program significantly boosted sales. Meng Xiangmin, vice president of Actual Home Group, described it as beneficial for both consumers and businesses, helping to stimulate consumption and drive industrial upgrading.
However, several issues remain. While the pilot was short, it highlighted operational challenges. Many problems emerged during the process, prompting industry experts to suggest refining the policy before nationwide implementation.
The government version of the trade-in program resolved several key issues. It provided more credibility, standardized procedures for recycling old furniture, and established clear rules on matching old and new items. Additionally, the commission designated specific enterprises for recycling and environmentally safe disposal of old furniture.
Despite these improvements, the operation remains cumbersome. Consumers must navigate multiple steps, including obtaining invoices, submitting applications, and waiting for subsidies. This has led to complaints about the complexity and time required.
The target audience is still limited. Only specific groups—Beijing residents, military personnel, and those with valid permits—are eligible. Some argue that expanding eligibility would increase participation and benefits.
The process is also time-consuming for stores. Reporting data to the government, managing bank transfers, and handling extensive documentation add to the workload. This has dampened enthusiasm among some retailers.
Promotional offers are not always attractive. In some cases, direct discounts proved cheaper than trade-in incentives. Confusion among consumers about which products qualify for trade-in also affected their experience.
Lastly, the trade-in system lacks flexibility. While regulations state that furniture types must match, real-world application is strict. Custom-made items are excluded, and even minor variations in design can disqualify an item from trade-in.
Overall, the pilot showed promise but requires further refinement to ensure broader acceptance and efficiency.