Recently, under the support of the trade-in policy for consumer goods, various regions have intensified efforts to boost consumption and improve residents’ quality of life. Among the key areas supported is home renovation, with many local governments launching subsidy policies and promotional activities to facilitate renovations and partial upgrades of older homes. These measures not only enhance consumers’ living environments but also unleash spending potential and invigorate market vitality.
**Strong Policy Support**
At present, trade-in programs have emerged as a highlight in the consumer market. In Jiangsu, local authorities have focused on home renovations and kitchen and bathroom upgrades, significantly increasing support for residents and continuously stimulating home-related consumption. Recently, the Jiangsu Provincial Department of Housing and Urban-Rural Development launched the “Golden Autumn Home Renovation Trade-In Event” in Nanjing. Over 50 Jiangsu-based high-quality renovation companies pledged on-site to provide affordable products and services aimed at creating “happy homes,” focusing on aging-friendly modifications and renovations.
In May of this year, Jiangsu released the “Action Plan for Promoting Large-Scale Equipment Updates and Consumer Goods Trade-In,” proposing the development of new business models like “Internet + Home Renovation.” By August, Jiangsu introduced the “Implementation Plan for Supporting Trade-Ins of Consumer Goods with Long-term Special Government Bonds,” clarifying key measures to support trade-ins further. In the home renovation sector, the plan encourages the purchase of eco-friendly building materials, offering consumers vouchers worth about 15% of the purchase price for buying green products, with individual limits set at 3,000 RMB without requiring pre-approval.
This year, Shanghai has been ramping up support for trade-ins in home appliances and renovations with continual new policies being implemented. Recently, the Shanghai Development and Reform Commission and the Shanghai Finance Bureau released the “Implementation Plan for Advancing Trade-Ins of Consumer Goods,” expanding the subsidy range to include various appliances and home renovation products. Eligible items for subsidy include sofas, mattresses, cabinets, bathtubs, toilets, and various smart devices, providing tangible financial benefits to consumers. Currently, the guidelines for implementing the national trade-in subsidy policy for home appliances have officially been rolled out, covering major energy-efficient appliances with subsidies ranging from 15% to 20% based on the appliance category.
In Zhejiang, proactive measures uphold the home renovation focus on sustainable, green, intelligent, and aging-friendly designs. The “Notification on Further Promoting the Trade-In Action Plan” states that there will be a subsidy of 20% on the purchase price for specific renovation materials, up to a cap of 20,000 RMB per household. Following this, cities like Ningbo, Hangzhou, Zhoushan, Wenzhou, and Jinhua have published operational guidelines for various renovation materials and their corresponding subsidies.
**Subsidies Benefiting Residents**
The current trade-in initiative emphasizes the combination of stimulating consumption and enhancing residents’ well-being. Recently, the first model aging-friendly home renovation space in Zhejiang was unveiled in Hangzhou. It included essential modifications for safety and accessibility, featuring products like cabinets, toilets, wash basins, and gas alarms aimed at making life easier for the elderly.
In Hangzhou, where the elderly population is significant—representing 27.6% of the total population—local officials have made it a priority to ensure that aging-friendly products become part of daily life for seniors. According to Pingyuan, Deputy Director of the Hangzhou Civil Affairs Bureau, the subsidy scheme encourages renovations tailored to seniors, allowing them to select projects based on personal needs and receive financial support afterward.
Currently, Nanjing has initiated the “Beautiful Renewal” campaign, planning to focus on essential living needs with over 100 events already conducted, benefiting more than 20,000 households. In Lianyungang, local authorities collaborated with home renovation firms to introduce sample homes in shopping malls and communities tailored to bolster home renewal spending, leading to a substantial rise in furniture sales compared to last year.
From the beginning of this year, Jiangsu has concentrated its efforts on four key sectors, conducting over 3600 promotional activities, distributing over 830 million RMB in consumption vouchers, and involving more than 100,000 merchants. A local decoration company remarked that their commitment to providing up to an additional 5% discount for consumers is part of their strategy to enhance service quality and meet diverse consumer needs in the realm of home renovations.
The Shanghai Hongxing Meikailong Global Home Store on Zhenbei Road has been bustling with activity. At the entrance, bold advertisements announce “Up to 30% Subsidy for the Golden Autumn Consumption Season.” With participation from eight stores, the promotional range includes 800 brands and over 30,000 products. A representative indicated that customers can combine offers, enjoying up to a 30% subsidy with a maximum of 4,000 RMB per transaction.
**Opportunities for Businesses**
The trade-in initiative not only benefits consumers but also presents new opportunities for businesses. Bailian Group actively responds to the policy through its “2024 Bailian Consumption Renewal Festival,” running from September 15 to December 31, focusing on five major categories, including home appliances and aging-friendly products. At the Shanghai Haomeijia store, a variety of home improvement products capture the attention of consumers, who are seeking information about the trade-in policies and participating in the promotion.
“This time of year is traditionally busy for renovations, and with many looking to move into new homes by year-end, consumer interest is high,” said Jia Jianyu, Strategic Administrator at Haomeijia. The inclusion of building materials in the subsidy program is expected to boost sales by 30% to 40% in the fourth quarter alone.
With the recent policies, average transaction values have risen, marking an excellent opportunity for appliance vendors. He Xiaowei, General Manager at Suning for Shanghai, confirmed that these trade-in policies are a chance for firms to enhance player experience, optimize inventory, and offer superior service while driving robust sales.
“Having just renovated my older home, the range hood I used was over a decade old, so I see the holiday as a chance for an upgrade,” said local consumer Yu Qian in Zhejiang, who recently decided to purchase a new energy-efficient model following the launch of the trade-in program. The store manager reported a dramatic increase in foot traffic and sales since the program began, with daily sales up nearly 100%.
In Shenzhou City, which is a vital production hub for kitchen appliances, the ongoing trade-in initiative supports the phasing out of older, inefficient models, providing a platform for brands to showcase innovation while meeting consumer demands. Qiuxuefu, President of the Jiangsu Decoration Industry Association, noted that creating quality projects while ensuring consumer rights will be a focus moving forward.
Jiang Zhao Yi, a researcher at Jiangsu Academy of Social Sciences, emphasized that the trends in home renovation are leaning towards quality, differentiation, and personalization, and that further expansion of supportive consumer policies will aid in meeting increasingly diverse community needs.
