China's expanded trade-in subsidy policy for consumer goods, including mobile phones, tablets, and smartwatches, has fueled a surge in digital product and home appliance sales over the Spring Festival, as consumers take advantage of government incentives and retailer discounts.
The trade-in subsidy program encourages consumers to replace outdated electronics and appliances with energy-efficient models, offering direct discounts and retailer incentives. This year, it covers more products, including microwaves and dishwashers, and coincides with the Spring Festival for the first time, driving a surge in purchases.
At an electronics store in Beijing, shoppers crowded the mobile phone section, with sales of telecommunications products jumping 200 percent compared to the same period last year.
The increase follows the roll-out of a government subsidy program on January 20, offering a 15 percent discount on mobile phones, tablets, and smartwatches priced below 6,000 yuan (over 830 U.S. dollars).
"The government is offering subsidies, and the store is adding another 100-yuan discount, bringing my total savings to 600 yuan. I think it's a great deal and definitely worth it," said Lin Yi, a Beijing resident.
Under the policy, consumers purchasing products priced between 3,333 yuan and 6,000 yuan (roughly 460 to 830 U.S. dollars) can receive a maximum subsidy of 500 yuan (about 70 U.S. dollars). This price range has been the most popular in major retail stores, significantly boosting sales.
"Sales have surged by 400 percent compared to before, especially with some popular brands, which sell around 10 units per day on average," said Li Tiantian, a sales representative at a mobile store in Huai'an City, eastern Jiangsu province.
Retailers have further stimulated demand by stacking additional promotions on top of the government subsidies. Many young shoppers have been eager to take advantage of the discounts.
"With the government's discount policy and subsidies, this is a really cost-effective deal. Treating myself to a new phone for the Chinese New Year makes me feel truly happy," said Xiang Youqi, a college student in Huai’an.
According to the Ministry of Commerce, from Jan 20 to Feb 1, a total of 14.7 million consumers applied for subsidies on 18.9 million digital products, including mobile phones.
The trade-in subsidy has also fueled strong demand in the home appliance sector, with newly eligible categories such as water purifiers and dishwashers encouraging consumers to upgrade household essentials.
"I recently bought a new home, so I'm using the holiday to get all my appliances. The Spring Festival discounts are great, and the government's consumer benefit program is really helpful. I'm very satisfied," said Zhang Qing, a Beijing resident, who saved over 2,000 yuan (about 280 U.S. dollars) on a refrigerator through combined subsidies and retailer discounts.
According to government data, between January 1 and February 1, 1.59 million consumers purchased 1.91 million units across 12 major home appliance categories. Kitchen appliance sales, in particular, have surged in some areas.
"For kitchen appliances, we sold over 300 units in January alone, with total sales reaching around 800,000 yuan, more than a 60-percent increase from last year," said Yang Rong, sales manager of an appliance store in southwest China’s Sichuan Province.
To meet rising demand, home appliance manufacturers have ramped up production. At an air conditioner factory in Jiujiang of eastern Jiangxi province, all six production lines are operating at full capacity.
While the Spring Festival is typically a slow season for air conditioner sales, the trade-in policy has driven a 15 percent increase in orders compared to last year.
"We've introduced a digital management platform to enhance production efficiency, and with equipment upgrades, we've boosted capacity by 10 percent to meet growing demand," said Ding Yanhua, production manager at the factory.
With both digital products and home appliances seeing strong sales growth, the trade-in subsidy program is proving to be a key driver of China's consumer spending during the holiday season.
China's trade-in subsidy boosts digital, home appliance sales over Spring Festival
China's trade-in subsidy boosts digital, home appliance sales over Spring Festival
