Where is the value of old furniture?

After the end of the home appliance trade-in policy, the trade-in policy for old-fashioned furniture is expected to become a new measure to boost consumption in Beijing this year. According to the “Beijing Morning Post” report, at the recent 2012 Beijing Business Work Conference, Beijing’s policy of promoting consumption had a new trend. On the basis of the successful implementation of “replacement of home appliances”, the municipal government will pilot the “restoration plan for furniture replacement” this year. Minutes of the meeting showed that at present, the plan is still in the stage of discussion. It is initially expected that the government will select companies with higher chain and scale to carry out pilot projects and then promote them. But where exactly is the recycling value of old furniture?

Difficulties in the identification and recycling of old furniture

Recently, the relevant person in charge of the Beijing Municipal Commission of Commerce said in an interview with the media that the new promotion and consumption policy will take the form of “linkage” to create a better policy environment, but the specific policy content of the commerce department has not yet been announced.

According to the “Beijing Business Daily”, the old furniture that Beijing has eliminated each year exceeds 1 million sets. If these furniture are re-consumed through “replacement for old” methods, it will be calculated at around 3,000 yuan per set of furniture, and Beijing can drive nearly every year. 3 billion in furniture consumption. Although the specific measures for the New Deal are still being worked out, many practitioners and consumers have high hopes for this New Deal that encourages the market.

In an interview with the author, Yin Bo, general manager of the Blue King Li family, said that this new policy is a consumer product supported by the government to expand domestic demand and the government supports it. The old-for-new-home appliance replacement policy is still quite obvious in boosting domestic demand. The replacement of old-fashioned furniture is part of this year's further boost of domestic demand. However, he said that the replacement of furniture still requires a pilot process, which is mainly due to difficulties in the identification and recycling of furniture. There are many types of old furniture, such as slabs, solid wood, wood, mahogany, office furniture, etc., and there are also large and small pieces, oldness and oldness, and different use values. He believes that how to evaluate the value of old furniture and who should assess it is a difficult part of this new policy.

Although previous stores had experience of furniture trade-in, but Yin Bo said that the Blue King Li family attaches great importance to this new policy and is conducting detailed research and classification. He hopes to cooperate with formal recycling companies. He said that the recovery of old furniture in China is mainly because the distribution channels are not perfect and there is no relatively mature system. He believes that this New Deal is expected to provide an opportunity for the establishment and improvement of this recycling channel. Although, the current policy of the New Deal is still unclear.

With regard to the government’s rebate on subsidy for furniture, Yin Bo said: “This is not easy to say. Currently, the 5% rebate in some stores’ trade-in activities is an individual behavior of a company and cannot rise to the level of government subsidies.” He said. It is hoped that the Beijing Municipal Commission of Commerce can publish the selection criteria for pilot units as soon as possible to provide time and space for the implementation of the pilot of this new policy and the full promotion of the next step.

Where is the value of old furniture?

In the home appliance trade-in policy, the government subsidy is divided into three types: home appliance trade-in subsidies, freight subsidies and dismantling processing subsidies, which correspond to different groups; subsidy funds are borne by the central government at 100%; consumers can enjoy it in the store. New home appliances are priced at a subsidy of 10%, and provide a ceiling for subsidies.

For the promotion of the New Deal, Liu Yang, general manager of the Chengcheng home store outside the city, said that “it is quite advantageous to have a furniture replacement event outside the city.” She said: “Beside the city, Cheng Cheng is the only enterprise with a franchise market business license in the Beijing home market, and has many years of experience in recycling old furniture. Among them, the evaluation of home furnishings, pricing, and sales have matured. Cheng Cheng Cheng has not yet launched a new activity.” She said that after the news of the New Deal came out, Cheng Wai Cheng plans to further refine the operating experience of the flea market and incorporate it into the new policy. "Because our previous collections did not provide for customers to change the new ones. We are now discussing the specifics of the replacement process and will start this activity as soon as possible."

Relative to the limited number of household appliances, a wide range of furniture subsidies and standard setting seems to be a difficult problem. On this issue, Liu Yang pointed out: “The difference between furniture and home appliances is that most home appliances are single product prices, and the price of furniture is very large and the scope is very broad. If the subsidy rebate is 5%, then it is to buy 50,000 yuan. Furniture will also be an impressive figure; if you buy a set of mahogany furniture, the amount will be even greater."

However, on this issue, there are industry insiders recommend the idea of ​​extending the policy of home appliances, select several types of commonly used furniture as a trade-in policy for consumers to choose, and set a ceiling on the amount of subsidies rebate.

In addition, Liu Yang believes that the biggest problem in the old policy of furniture replacement is how old furniture is handled. “Because the value of old furniture recycling is not very big.” After the panel furniture is disassembled, it is difficult to assemble it again. The solid wood home has a certain recycling value, but it is difficult to enter the production line for the second time. She said that Cheng Cheng is better than the others, and there is a flea market that can digest some of it. As a pilot of the New Deal, there are still some advantages.

On the value of furniture recycling, Liu Yang said that the furniture market has been subdivided to a certain extent. For example, some brands of furniture are imported or are made of special materials. The old furniture and plates recovered are very messy, and some may not be environmentally friendly. Some stickers have no recycling value and there is no way to identify and classify them. However, she said that since the New Deal is still being discussed outside the city, it is still not mature.

However, according to the author's understanding, the "reuse space for used furniture is actually very large." Taking wooden building materials as an example, waste wood products can be processed into baseboards, laminate flooring substrates, recycled paper, etc., and finely divided wood can be processed into fingerboards, splints, etc., which can “effectively reduce new The amount of wood used." There are also many technologies for reusing wooden furniture abroad, and domestic companies can follow suit.

Lin Jiang, a professor at Lingnan College of Sun Yat-sen University, said in an interview on this issue that if recycling and utilization of furniture, improve the technology and the possibility of profitability, not only can improve the enthusiasm of consumers to purchase furniture for the second time, but also can stimulate domestic sales of the domestic furniture market. Zhu Changling, secretary-general of the China Furniture Association, also stated on this matter: “The recycling of used furniture should be truly promoted. While the company itself is working hard, it is inseparable from policy guidance, guidance and support”.

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