Five-year plan for domestic trade or the introduction of furniture and building materials

Recently, Assistant Minister of Commerce Fang Aiqing revealed on two occasions on different occasions that the "Domestic Trade Development Plan (2011-2015)" will be introduced soon. This is the first national-level domestic trade development plan since the reform and opening up.

According to the Shanghai Securities Journal, the plan covers wholesale, retail, accommodation and catering, and residential services. It aims to play a role in guiding domestic production and expanding consumption. The goal is to achieve retail sales of consumer goods by 2015. The total amount is 32 trillion yuan, which is about 80% higher than the current scale.

The “Twelfth Five-Year Plan” of domestic trade is a broad and guiding plan. Although the policy of promoting consumption will not be directly reflected and implemented in the plan, the direction of policy encouragement can be seen.

It is understood that the relevant ministries and commissions will have a series of consumer promotion policies. Specifically, it includes: introducing measures to increase the subsidy for the retirement of existing old cars as soon as possible; subsidizing the consumption of furniture and building materials; promoting the introduction of tax reductions in circulation; and making appropriate adjustments to the consumption tax on some consumer goods. At the same time, in terms of promoting consumption support measures, in addition to subsidies, they will also make appropriate explorations in terms of tax exemption, tax rebates and interest subsidies.

Furniture and building materials used to replace the old pilot

In Beijing, some furniture circulation companies have taken the lead in piloting. Consumers who purchase new furniture can hand over the old furniture to the store for recycling. Regardless of the original price of the old furniture and the old and new, it will be deducted at 5% of the new furniture turnover.

Targeted stimulus policies have been introduced for some of the faster-growing products, and the effect of bright-point consumption to drive consumption growth has been an effective and most commonly used means.

Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, believes that policies should lead to the formation of new consumption growth points. At present, the consumption growth of China's furniture, construction and decoration materials has shown strong endogenous growth momentum. It is necessary to introduce corresponding expansion of consumption policies for the above-mentioned commodities, boost the growth of consumption of these commodities, and create new consumption hotspots.

"Furniture, building decoration materials, etc., the growth rate is more than 25%, but there is no corresponding policy stimulus." Zhao Ping said that although the sales growth rate of these products last year has declined somewhat, this year's growth rate is not very high, but its It ranks among the top three in terms of social retail consumption. If these products can receive policy support, the development space will undoubtedly be broader.

In 2012, 7 million sets of affordable housing will be built nationwide, of which 4 million will be completed by the end of the year. Unlike commercial housing, the occupancy rate of affordable housing is almost 100%. The construction of affordable housing will provide stable demand for furniture consumption. In addition, the rigid demand for second- and third-tier cities that have not yet been restricted will also drive the gradual release of the growth potential of furniture, construction and decoration materials. In the first-tier cities where the purchase restriction policy has a greater impact, after the upgrading of automobiles and home appliances, the consumption of furniture products may become an important carrier for the upgrading of consumption structure.

According to experts, the consumption growth of furniture, construction and decoration materials will reach nearly 30% in 2012, which has become an important highlight of consumption growth.

The expansion of furniture trade-in and building materials to the countryside has become a policy of greater voice. At the 2012 work conference, the Beijing Municipal Commission of Commerce clearly stated that in order to improve the long-term mechanism for promoting consumption, this year, we will explore various projects for the benefit of the people. Lu Yan, director of the Beijing Municipal Commission of Commerce, also told the media in July that Beijing’s “furnishing for furniture” policy will be officially announced in the near future.

Shen Danyang, spokesperson of the Ministry of Commerce, said that the policy of replacing old furniture with new ones is now being tested and promoted by the local commercial department. The Ministry of Commerce has a positive support attitude. "The pilot always has a process. If the pilot is good, it should be summarized. If possible, promote it nationwide."

A research report by Dongxing Securities pointed out that if the furniture trade-in policy is only implemented in Beijing, the overall furniture consumption will be less than 0.5%; if it is implemented nationwide, it will be able to pull about 15 according to the experience of home appliance trade-in. % of terminal consumption, furniture domestic sales growth rate will reach 35%.

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