Four mysteries of furniture consumption are in full swing

At the beginning of February, the Beijing Municipal Commission of Commerce announced that it will carry out “replace old with new” furniture in Beijing. For consumers, this is undoubtedly a good thing. The old furniture has a proper place. The addition of new furniture also makes it easy to upgrade the home. Although Beijing's unification pilot has not yet begun, there are already home furnishing enterprises that eat "crab" first. Including well-known home stores such as Actual House, Jimei Home Furnishing, Red Star Macalline, etc., they had independently operated furniture as early as 2011. Recently, the reporter conducted in-depth interviews on several issues of concern to the common people.

Mystery 1: Who can enjoy furniture "trade-in"?

The just-finished home appliance "trade-in for the old" restricts the preferential group to Beijing household registration. The "trade-in" of furniture is more related to the purchase and replacement of houses. Affected by the strict policies of real estate, the number of people who have bought new houses has fallen sharply, and the "new for old" benefit more consumers of old houses.

Consumers say: There are a lot of recycling of old home appliances, even if we can't enjoy the policy, we can also ask people to come and pull away. Old furniture will not work, there are fewer people to recycle, and the workers will have to pay for it. I hope to stop restricting the conditions of household registration.

Enterprise response: Whether it is an actual home, Jimei Home Furnishing or Red Star Macalline, the household registration conditions are not restricted by the enterprise. Shen Yaojun, vice president of Jimei Home Furnishing Group, emphasized: As long as you have old furniture in Beijing, you can participate in "exchanging old for new". The company hopes that as many people as possible can participate in the furniture trade-in.

Expert Comment (Secretary-General Yu Xiufen of Beijing Furniture Association): Because of the characteristics of multiple types of furniture, large price differences, and low recyclability, the "trade-in" of furniture may abandon the "trade-in" model of home appliances. It is possible for the government to issue only one directional policy and leave the power to make detailed rules to the enterprise. If this is the case, it is unlikely that companies will directly introduce restrictions on the policy population.

Mystery 2: Is there any extra charge for return or exchange?

Return and exchange has always been a sensitive issue between consumers and merchants, although a considerable part of the home market in Beijing has implemented a one-month return and exchange service. However, with the "new-for-new" furniture coming soon, logistics, warehousing and other expenses will inevitably be incurred in the recycling of old furniture. The problem of return and replacement of furniture is again in front of consumers and businesses.

Consumers said: If I participate in the "trade-in" of furniture, and I want to return the goods, is it necessary for me to bear a series of costs caused by the recycling of old furniture? Can I still enjoy the one month return service without reason?

Business response: Several stores that have launched "trade-in" in the early stage have not added this cost to consumers. There is no conflict between participating in the “trade-in” and the enjoyment of a month ’s return of goods without reason in the “trade-in for the old” practiced by the actual home. If consumers need to return the goods after participating in the trade-in, they only need to refund the full amount of the subsidy received from the previous trade-in, without having to bear additional logistics and other costs. There are no additional costs.

Expert comment: On the issue of return and exchange, the common wishes of enterprises and consumers should be respected first. If in the implementation, the return may lead to a substantial increase in costs, you should consider the issue of responsibility. If the return is due to quality problems or business problems, the consumer does not bear the additional cost; if the return is caused by the consumer's own reasons, then the consumer may bear part of the additional cost.

Mystery 3: How do I discount my old furniture?

The determination of the subsidy method and the amount of subsidy is undoubtedly the focus of the market's most concern in the furniture trade-in. Panel furniture is difficult to "reuse", and the value of solid wood furniture is not easy to evaluate. Even if it is the same as panel or solid wood furniture, its price span can reach thousands or even tens of thousands of yuan. Consumers obviously hope that like the home appliances, the state will directly subsidize the individual, and enterprises even hope that after paying a lot of manpower, material and financial resources, the state will give the company a practical preferential policy.

Consumers said: No matter how much old furniture can be worth, we still hope that this subsidy will be put in place and let us get practical discounts.

Enterprise response: The person in charge of the actual home said: behind the 5% subsidy, there are actually many jobs that are not seen by consumers, such as building warehouses and processing centers. Jimei Shen Yaojun told reporters directly: The recovered old home has nearly 70% of it has no reuse value, and it requires enterprises to do a lot of follow-up work. And in the statement of the home furnishing executives, the furniture "trade-in" is more labeled with value-added services and social responsibility. While furniture "use the old for new" to drive consumption, it also bears the mission of "home upgrade" and "environmental protection appeal". Of course, these missions cannot be completed independently by enterprises, and government promotion and policy subsidies are particularly important for enterprises.

Expert comment: The determination of the subsidy method is related to the implementation strength and long-term effect of furniture trade-in. Because furniture cannot have a relatively clear price system like home appliances, it may not be appropriate for the state to formulate "one size fits all" preferential policies. Decentralization of power to the enterprise, the enterprise setting the standard for subsidies to individuals, and then the state should subsidize it to the enterprise according to the situation of the enterprise carrying out the trade-in policy.

Mystery 4: Can all home furnishing stores in Beijing handle this business?

For most people living in Beijing, it is a blessing to choose to shop at a store close to home. And can this happiness continue in the furniture trade-in?

Consumers said: In fact, there are quite a lot of home furnishing stores, but I still hope to handle the business nearby. Otherwise, in order to change furniture, you have to drive dozens of kilometers, which is quite difficult.

Enterprise response: According to the reporter, it seems that it will take time for all stores to join. Jimei Shen Yaojun believes that the “exchanging old for new” furniture needs a lot of manpower, material and financial resources. According to conservative statistics, the annual expenditure of this item will reach 5 million. This is undoubtedly a competition for the strength of the home store. The most likely winner will be a store with a certain size. However, the general manager of the small store also said that even if there is no bid for furniture "trade-in", the store will also introduce positive countermeasures to keep up with the pace of furniture trade-in and strive to stabilize the passenger flow.

Expert's comment: The furniture trade-in involves high cost of manpower, logistics, warehousing, and reuse. Therefore, this policy should not be rolled out in all stores in the city, but according to the scale of the enterprise, the willingness to participate, The degree of coordination of related work is determined. Of course, consumers must be taken into account. Now there are companies that can directly make an on-site service by telephone. Consumers are not required to go to the store in person.

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