China's trade-in program has become a key driver of household consumption, with 64 million households purchasing over 70 million home appliances and furniture items in 2024, as government subsidies continue to fuel demand and encourage upgrades across various sectors.
In Beijing, customers at home appliance stores expressed their satisfaction with the benefits of the trade-in policy.
"Our fridge has been running for over a decade, and we've been thinking about replacing it for a while. Luckily, there's a great discount program this year, so we can save quite a bit," said one customer.
"My new place is about to be ready, so I'm looking into home appliances. Energy efficiency is really important to me, so I'm definitely going with top-rated models. And they're eligible for a 20 percent rebate, such a great deal," another customer added.
The effectiveness of China's trade-in subsidy program is underscored by a marked surge in both foot traffic and sales, with major industry players reporting notable gains in demand.
"The government's 'trade-in' subsidy program has given the home appliance industry a significant lift. At this store alone, foot traffic has nearly tripled since the policy took effect compared to last year. Furthermore, in the first quarter of 2025, Haier saw a 14 percent jump in total sales, driven largely by strong demand for air conditioners and water heaters, which led the way in growth," said Meng Wenxing, head of Haier Smart Home at the Beijing 001 Experience Center.
With continued policy support for upgrading household goods and promoting new consumption, consumer engagement in the home appliance and furnishing sectors continues to rise. The latest round of trade-in subsidies now covers additional items, including microwaves, dishwashers, water purifiers, and rice cookers.
"Compared to last year, we've seen a distinct shift in consumer priorities. In 2023, price was the main concern; people were hunting for the best deals. But now, more consumers are looking at product quality, innovations, and how it can genuinely improve their lifestyle," said Chen Bo, sales director at Siemens China.
Experts believe that these consumer-focused policies not only help phase out outdated or energy-inefficient products but also stimulate innovation and competition among manufacturers.
Trade-in policy drives surge in household consumption in 2024
