[SMM Hot Topic] Leverage the "Golden Key" of Trade-in Policy to Open Up New Space for Market Growth

[SMM Hot Topic]Leveraging the "Golden Key" of Trade-in Policy to Unlock New Growth Opportunities in the Market

"Market sales have rebounded significantly, with rapid growth in trade-in-related goods." This was stated by Fu Linghui, spokesperson for the National Bureau of Statistics (NBS) and director of the NBS's Department of Comprehensive Statistics of the National Economy, at a press conference held by the State Council Information Office on June 16. Implementing trade-in policies for consumer goods plays a crucial role in boosting consumption and expanding domestic demand. Since the beginning of this year, various regions have continuously intensified their trade-in policies, effectively stimulating market vitality and becoming a "golden key" to promoting economic growth and enhancing people's well-being.

In the first quarter of this year, the trade-in policy for consumer goods boosted the growth rate of total retail sales of consumer goods by 1.6 percentage points, effectively driving the sustained rebound and improvement of the market landscape. Meanwhile, China has also been intensifying efforts to "expand the scope" of implementing trade-in policies for consumer goods this year. For example, it has introduced, for the first time, a purchase subsidy policy for three types of digital products: mobile phones, tablets, and smartwatches (bands). The scope of trade-in products for eight major categories of home appliances has been expanded to twelve categories. Additionally, 300 billion yuan of ultra-long-term special treasury bond funds have been arranged to support the intensification and expansion of trade-in policies for consumer goods.

As the trade-in policy continues to show its effectiveness, the consumption demand for green, intelligent, and high-quality products continues to be released, driving production growth. According to data from the China Association of Automobile Manufacturers (CAAM), since the implementation of the trade-in policy this year, China's automobile production has achieved positive year-over-year (YoY) growth for five consecutive months. In May, the production of trade-in products such as new energy vehicles (NEVs), tablets, and e-bikes also increased by 31.7%, 30.9%, and 20.5%, respectively. Whether it's automobiles, home appliances, digital products, or home improvement and kitchenware, the power of industries moving towards "newness" can be seen behind them. Through product innovation, more products that cater to consumer needs are developed, allowing more high-quality consumer goods to enter ordinary households and achieving a positive interaction between industries and consumption.