China’s trade-in coverage triggers retail surge in home equipment

BEIJING, China, Jan 20 — The shopper items trade-in coverage for this 12 months has already elevated retail exercise considerably, benefiting each retailers in addition to customers, mentioned retailers and business consultants.

Designed to advertise inexperienced, sensible, and energy-efficient merchandise, the renewed coverage provides focused subsidies to switch previous items for brand new ones, thereby producing robust demand in sectors together with dwelling home equipment and shopper electronics.

For retailers comparable to Suning.com, the affect has been rapid. From Jan 1 to three, foot visitors at Suning shops surged by 110 p.c, whereas gross sales of energy-efficient dwelling home equipment like fridges and washing machines doubled month-on-month. The proportion of first-tier power/water-efficient home equipment bought via Suning’s platform has elevated to 92 p.c in the course of the interval.

“The new trade-in program focuses on categories that raise energy efficiency, injecting vitality into the update of home appliances that are green, smart, and healthy,” mentioned Yan Zhengkui, head of the administration middle at Suning shops.

The retailer has additionally embraced a dual-channel technique, making it straightforward for customers to assert subsidies each on-line and offline.

“We’ve seen an overwhelming response from customers eager to take advantage of the trade-in policy. The new national subsidies have made first-tier energy-efficient products the mainstream for consumers,” mentioned Liu Meichen, a retailer supervisor at Suning Max Beijing.

For customers, the trade-in coverage is about extra than simply reductions. It gives them the chance to buy cutting-edge sensible home equipment at extra inexpensive costs. Products like AI-powered fridges, sensible washing machines, and energy-efficient air conditioners are actually in excessive demand. Over 70 p.c of customers are additionally prioritizing health-related options, comparable to self-cleaning or odor-removal capabilities whereas shopping for home equipment.

In the 3C sector, gross sales of smartphones and smartwatches rose 170 p.c and 115 p.c, respectively, reflecting the rising reputation of tech bundles, in accordance with Suning.com.

“The smartwatch is a great tool for health tracking, and with the subsidies, it’s good value,” mentioned Li Shunying, a Beijing resident who runs 2-3 instances every week.

The coverage’s concentrate on inexperienced and sensible expertise is predicted to reshape the market over the long run. Analysts predict that it’s going to proceed to information consumption towards higher-end, energy-efficient merchandise.

Liu Chunsheng, affiliate professor on the School of International Trade and Economics, Central University of Finance and Economics, mentioned that the trade-in coverage sparked robust shopper enthusiasm final 12 months, resulting in vital volumes and excessive substitute charges for merchandise like cars, dwelling home equipment, and 3C digital gadgets, thus fueling continued consumption development.

According to information from the Ministry of Commerce, in 2025, gross sales of trade-in-related merchandise exceeded 2.6 trillion yuan ($388.6 billion), benefiting over 360 million individuals. The initiative facilitated the trade-in of greater than 11.5 million cars, 129 million dwelling home equipment, 91 million cell phones and different digital merchandise, in addition to 120 million items of dwelling renovation objects and kitchenware.

For extra go to China Daily

For subscriptions on information from China Daily, or inquiries, please contact China Daily Africa Ltd on +254 20 6920900 or write to enquiries@chinadailyafrica.com