What is the biggest hot spot in the home appliance industry this year? Trade in old for new.



More than 10 years after the last round of trade-in, with the encouragement of the policy, the window of home appliance trade-in finally opened this year, from manufacturers to channels. Speeding up the elimination of out-of-service household appliances and vigorously promoting green smart household appliances is in line with the general trend of consumption upgrading and industrial development. It is not only conducive to protecting consumers' personal and property safety, improving the quality of life, but also can stimulate the economy and promote sustainable development.



Data show that China, as the world's largest home appliance producer and an important consumer, has entered the peak period of home appliance scrap. In this process, how to deal with the obsolete household appliances, has become a problem of general concern in the industry. Industry insiders surveyed said the high cost of "exchanging old for new" poses a challenge. He said, intermediate demolition, storage, transportation, processing and other links cost high. In order to release the huge stock market potential, home appliances "recycling" weaknesses need to be made up.



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Old appliances are not broken or repaired? The hidden danger of "household appliances over age" cannot be ignored



"The air conditioning in my home has been used for more than ten years. When I saw the hot weather, I took advantage of the trade-in discount to change the new one." During the National Day holiday, Foshan resident Ms. Tao got rid of the old air conditioning unit in her home. She felt the improvement in her quality of life when she bought a new level 1 energy efficiency frequency conversion air conditioner with a size of 1.5 pips. "The old air conditioner has been used for 12 years, but it is noisy and consumes electricity. The new air conditioner is very quiet and comfortable to blow."



According to the home appliance trade-in policy of Foshan City, 10% of the actual transaction price of a single piece of new home appliance will be given a subsidy, with the maximum subsidy not exceeding 500 yuan per unit. The new air conditioner originally cost 2,599 yuan, but after deducting subsidies and business incentives, Ms. Tao spent only 2,150 yuan.



Like Ms. Tao, there are many consumers with new needs. According to the calculation of annual elimination rate of over 20%, it is estimated that 200 million household appliances will reach the safe service life in 2022. Among them, over 30 million TVS, 37 million washing machines, 52 million air conditioners, 58 million refrigerators and 18 million electric water heaters. More than 14 million range hoods.



"The window period for large-scale renewal of household appliances has opened in our country." Jiang Feng, executive director of the China Household Electrical Appliances Association, said that after the previous round of trade-ins and the policy of sending home appliances to rural areas, the rural market has basically come to the renewal period, while the urban consumer market has reached the stage of huge stock market.



At the same time, the phenomenon of overdue service of household appliances of urban and rural residents is still relatively common. The responsible person of Guangdong Provincial Consumer Committee also pointed out that, with the country and Guangdong and other places to introduce continuous measures to promote consumption, all kinds of household appliances promotion activities and profit policies have been placed on the ground, household appliances market is becoming an important power point to promote consumption, household appliances "old for new" has become a new trend, but there are still many consumers insist on old household appliances "not bad not change".



As everyone knows, the multiple hidden dangers of overage use of household appliances cannot be underestimated. Some insiders point out that, first of all, lead, mercury and fluorine are essential materials for many home appliances, and the overdue service of home appliances is likely to make these toxic and harmful substances leak out, affecting the health of consumers; Second, "over-age" appliances consume 30 to 40 percent more electricity and gas than energy-saving products. At the same time, improper disposal of waste household appliances will threaten the natural ecological environment and endanger human health; In addition, overdue service of household appliances "a minor repair in three days, a major repair in five days, repair and repair again" situation is very common, virtually for consumers to add time and use costs.



"In fact, most of the waste household appliances due to the size, disassembly and other problems, it is difficult for consumers to complete their own, need a special person to deal with. Encouraging recycling and trade-in of home appliances can help consumers iterate on old appliances in a timely manner, reduce usage risks, and promote consumption expansion from another perspective." There are insiders said.



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Who will recycle the used household appliances? Internet platform one-stop solution



I'm sure you remember hearing about expensive recycled refrigerators, color TV sets, washing machines... In the early years, most household appliances were recycled by private vendors, so it was difficult to get efficient, safe and environmentally friendly disassembly and recycling.



At present, the recycling channels of waste household appliances are not only individual vendors, but also recycling enterprise networks and Internet platforms. Individual traders objectively reduce the amount of recycling from other channels, but the impact is far more than that. After obtaining the waste electrical appliances at a low price, some individual traders will simply refurbish the waste electrical appliances and then sell them again. This approach is not only unfavorable to the recycling of waste household appliances, but also brings security risks.



In order to regulate the household appliances recycling and solve the environmental pollution caused by the disordered recycling, a series of documents including "waste electrical appliances and electronic products recycling management regulation" were issued in our country, which makes the household appliances recycling form a normal recycling pattern. At present, recycling of old household appliances can be easily completed on various major e-commerce platforms such as JD.com, Tmall and Suning. In August 2022, JD.com announced that it would upgrade its electrical appliances trade-in service to support cross-category trade-ins of mobile phones, computers and digital appliances. Users can choose up to six old products for trade-in at the same time.



The Tmall platform has stable cooperation with six recycling enterprises, supporting users across the country to recycle air conditioners, TV sets, refrigerators, washing machines, water heaters, computers, mobile phones and other products. The recycled money can be redeemed in the form of cash or red envelopes.



At the same time, some home appliance giants have launched one-stop services such as door-to-door demolition, old machine transportation, recycling and door-to-door installation of new machines. The recycling network of Haier Zhijia (600690) has integrated 32,000 offline stores, more than 100,000 service soldiers and more than 100 logistics distribution centers, covering more than 2,800 counties and cities across the country, in order to realize "the home appliance recycling sink to every township". At the same time, users can also submit used household appliances through channels such as Haier Zhijia Experience cloud APP and official website. If there is a need for upgrading, they can receive the old and send the new home once, and complete the logistics once.



"Our (Midea's) green strategy is a complete green and sustainable industrial chain from raw materials to production, from transportation and sales to recycling, replacement and dismantling." Midea Group (000333) green strategy expert Chen Xingting said, users to buy a good new product, the staff will send the new pull old; After sorting, the used machines are sent to the green dismantling enterprise. After standardized dismantling, the recycling of resources can be realized, and the development of energy conservation and emission reduction and green circular economy can be promoted.



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Ever feel like your old appliances are being sold off?



Industry attributes are destined to be low, but the social benefits are huge



Although one-stop recycling is convenient and quick, the reporter found in the interview that many consumers have a suspicion that their old appliances are being sold at a low price.



Whether it is an international brand or a domestic brand, whether it has been in service for more than ten years or just used for two or three years, in the estimated quotation of the recycling platform, the waste household appliances can only be sold to tens to hundreds of yuan. Compared with the thousands of yuan or even more than 10,000 yuan when these appliances first came on the market, many people think they are too cheap.



Why are appliances so cheap to recycle? In fact, the nature of home appliances determines the recycling industry's attitude towards them. Both black and white electricity, as long as they are not the top products, are based on quite mature technology production, it is difficult to show obvious scarcity in the time span. This allows the recovery quote to be based on specifications rather than specific models, and the lack of differentiation smooths out the price gap. Take the appliance recycling option provided by a store as an example. For the air conditioner with high residual value, if the option of air conditioner, hang up, single cooling, 1.5P, no refrigeration/no operation is selected, an online valuation of 150 yuan will be given.



Although the recycling price of household appliances is low, the contribution value to the environment is very high and can produce huge social benefits.



The disposal of electrical appliances after recycling is mainly to disassemble and extract valuable components and metal materials. Waste electrical appliances are an important source of scrap metal, which contains many renewable resources.



It has been estimated that recycling an old aluminum can can save 20% of the money and 90%~97% of the energy compared to making a new one. Recycling 1 ton of scrap steel can produce 0.9 tons of good steel. Compared with ore smelting, it can save 47 percent of the cost, and also reduce air pollution, water pollution and solid waste.



After the "double carbon" goal was put forward in 2020, the importance of household appliance recycling in saving resources, protecting environment and so on becomes more prominent.



For ordinary consumers, the best way to deal with waste household appliances at this stage is actually to exchange old for new. Because under the influence of preferential channels and policy subsidies, consumers can significantly reduce the cost of buying new home appliances.

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