Guangdong is embarking on an expansive endeavor to revitalize consumer spending with its latest "家520 (Home520)" shopping season, which aligns with a series of nationwide initiatives promoting the trading-in of consumer goods.
The shopping season, launched on April 28 in Guangzhou, marks a concerted push to stimulate consumption in key sectors, such as automobiles, home appliances, and home decoration. Leveraging both online and offline resources, the initiative aims to create diverse promotional activities for different consumption scenarios.
Wang Chunlin, the deputy general manager of the Guangzhou branch of Jingdong Five Star Appliance.
"Our stores and platform offer a 15% subsidy for customers trading in old appliances for new ones. And by teaming up with 15 major banks, we also provide a 5% payment subsidy," said Wang Chunlin, the deputy general manager of the Guangzhou branch of Jingdong Five Star Appliance. "During the upcoming May Day holiday, we anticipate a customer increase of approximately 30% because of this initiative."
Vehicle scrapping and replacing is another focus of the initiative. Individuals scrapping China III or lower emission standard petrol cars and purchasing new energy vehicles will receive a one-time fixed subsidy, ranging from 7,000 to 10,000 yuan depending on the type of car they scrap and buy.
Individuals who transfer their vehicles in Guangdong and buy new energy vehicles or petrol vehicles compliant with China VI emission standards in Guangdong will receive a one-time purchase voucher subsidy, ranging from 3,000 to 8,000 yuan depending on the price of the new car.
Hu Dong, the deputy director of the operation and management department of GAC Group
Moreover, automotive companies are set to roll out their own discount schemes. According to Hu Dong, the deputy director of the operation and management department of GAC Group, the trade-in discount ranges from RMB 4,000 to up to 51,000 depending on the sub-brand consumers choose and the types of car. Meanwhile, Xpeng offers a subsidy of RMB 15,000 for its own brand trade-ins, and RMB 10,000 for other brands. Guangwu Motor Trading introduces a dual subsidy of up to RMB 45,000.
As for home appliances, vouchers for the household appliance trade-in program will be issued, which are applicable for individuals selling any old household appliance and purchasing eligible green, smart, low-carbon ones, and electronic products. Subsidies are capped at 10% of the new appliance's purchase price, with each appliance (or voucher) subsidy reaching up to RMB 500 and capped at RMB 2,000 for each individual consumer.
The product range includes 17 categories of household appliances: air conditioners (including central air conditioners), refrigerators (including freezers), washing machines (including dryers), televisions, water heaters (including wall-mounted boilers), range hoods, gas stoves (including integrated stoves), dishwashers, floor sweepers (mops), printers, air purifiers, microwave ovens (including all-in-one machines), induction cookers, rice cookers, electric fans, water purifiers, and microcomputers (including desktop and portable computers).
The "Home520" shopping season, which extends until the end of June, serves as an extension of the national consumer goods trade-in program aimed at establishing a trade-in mechanism that facilitates the scrapping of used goods in exchange for smart, green, and low-carbon ones, as well as bolstering consumption.
Reporter: Eastbrook
Editor: Nan, Monica, James
