Many regions across China have rolled out incentives to boost consumption including the extension of replacement subsidies for buying automobiles, home appliances and home furnishing on the occasion of the five-day May Day holiday starting on Wednesday, in efforts to shore up economic recovery in the post-pandemic era.
Over the past few months, the government has intensified efforts to promote the introduction of trade-in programs and boost the consumption of green and smart home appliances and the replacement of old home appliances and automobiles.
The rising popularity of green, intelligent, and energy-efficient home appliances among consumers has resulted in a noteworthy surge in both offline and online order placement for new, energy-saving home appliances with trade-in arrangements, contributing to a substantial increase in the overall volume and value.
At a trade show in Zibo City of east China's Shandong Province, intelligent-connected new energy vehicles (NEVs) have become a preferred choice for many young consumers. Manufacturers are offering discounts of up to 30,000 yuan (about 4,140 U.S. dollars) per unit, along with various replacement subsidies.
"I got my favorite car at a price of just over 130,000 yuan (about 17,955 U.S. dollars), and they even threw in some optional packages as well. It was very affordable," said Zhang, a consumer in Zibo.
At a promotion site in Nanjing City of east China's Jiangsu Province, preferential arrangements such as direct discounts on car purchases and trade-in programs for the ongoing holiday season have covered nearly 100 models.
"Basically, the replacement subsidy is around 10,000 yuan (about 1,380 U.S. dollars) per unit," said Yang Shaoshu, president of Nanjing Investment Company of Senfeng Group.
In Jiaxing City of east China's Zhejiang Province, a total of 100 million yuan (about 13.81 million U.S. dollars) of fiscal funds will be allocated this year for auto trade-in programs.
"The replacement subsidies can reach up to 18,000 yuan (about 2,480 U.S. dollars) per unit, which will help boost the market growth and stimulate the purchasing power of consumers for new energy vehicles," said Du Lijie, general manager of Jiaxing Zhuoyu Store of BYD, one of China's leading NEV brands.
In Shanghai, major shopping malls have launched more than 80 consumption promotion activities, and other malls have also launched various discounts and coupon distribution activities online and offline.
"They are offering a basic discount of 21 percent on cosmetics, and there are also discounts on seasonal baby clothes and shoes. It is very convenient," said Zhang, a resident in Shanghai.
In south China's Guangdong Province, the first batch of 370 million yuan (about 51.1 million U.S. dollars) of special funds were allocated to encourage and promote consumer goods trade-in programs.
At a shopping center in Kunming City of southwest China's Yunnan Province, consumers can not only receive a 15 percent subsidy for buying some home appliances, but also enjoy a door-to-door service for exchanging old appliances for new ones.
Online sales are becoming increasingly popular in China. During the holiday, over 400 household appliance brands and more than 1,000 merchants are participating in the trade-in programs.
China encourages, promotes consumer goods trade-in programs during holiday
