The Beijing furniture trade-in activity has been full for one month. In all the participating stores, red banners and yellow promotional color pages are hung in eye-catching positions. However, the sales companies that participated in the trade-in were as good as the ones agreed, and they did not publicize the event with great fanfare. They even sneaked a sigh of relief. What is wrong with this? How much more to sell? In the home industry, booth rents remain the main source of income for the store. Founded in 2000, Jiahe Jiamei is regarded as the “old name†of the home circle, and has always used the traditional business model of booth leasing. “When the bidding announcement of the Municipal Commercial Committee came out this year, the company’s leaders let me prepare the relevant materials as soon as possible to carry out the bidding work.†Wang Hongkai, the director of Jiahe Jiamei’s business, said, “At the beginning, many merchants said that they did not understand and believed that the old-for-new rules were too much. Many sales behaviors will be limited. The most obvious change is that merchants have to give up the bargain-selling model that they have been using, but in fact, customers who come home and shop in the US have become accustomed to bargaining and even enjoy the process. Merchants are very puzzled, why the store has to find trouble for themselves." However, the attitude of the family and the US-based leadership is very persistent. They believe that the trade-in of furniture is an opportunity for enterprises. "What we can do is to persuade the merchants to actively participate." Wang Hongkai said, "We have repeatedly mobilized the merchants to publicize the furniture and trade the old ones to drive sales. When we buy new furniture, we can receive subsidies when we deliver old furniture as required. This is still very attractive to consumers." The furniture trade-in policy stipulates that consumers can receive a subsidy equivalent to 10% of the actual sales price of new furniture, which is 5% of the government and furniture sales companies. Wang Hongkai said: "At present, more than half of the merchants in the family and the home are involved in the trade-in." 5% of the subsidy is paid out by the store. For home and home beauty stores that rely solely on booth rental income, will they face the dilemma of selling more and more compensation in the long run? 5% of the advantages and disadvantages of each An industry insider admits that the old-for-new subsidy that companies need to pay is directly proportional to sales. The better the sales of the merchants, the higher the amount of subsidies that the store will pay. "But the company needs to pay for it, and whether the company can afford it, I can't predict it now," he said. In fact, this concern is widespread in home-based stores that rely solely on rental income. In the home industry, there are many stores like Home and Home, which use the traditional booth leasing model to charge merchants a certain amount of store rent each year. Since then, regardless of the merchant's sales, they are not directly related to the store. At the same time, however, there are some home stores that use the sales commission model. Consumers will deliver the goods to the cashier at the store, and the store will return the money to the merchants on a regular basis. In this process, the store will charge the merchant a 1% - 3% management fee. The better the sales volume of the merchant, the more management fees are charged by the selling place. It is not difficult to see that for a store that does not receive merchant sales commissions, the pressure on the funds to pay for the old-for-new subsidy is greater. "We can afford it in a short time, but if the sales flow is large in the future, it will inevitably encounter some new problems." Liu Chengkuan, the general manager of Chengwai Chengjia Plaza, said, "The old-fashioned renewal pilot lasted for a month, if you refer to the sales flow at that time. It will be extended to half a year to calculate, the store needs to provide a large amount of funds to subsidize consumers. The actual sales during the trade-in period this year will not only be six times the sales of the pilot last year, it should be far beyond this value. How to solve the funds at that time? Problems, companies need to explore in the process of practice." “It’s not how much compensation the company has to pay, it depends on how to convert it.†Shen Yaojun, vice president of Jimei Home Furnishing, believes that “the store has paid 5% subsidies, but if the old trades bring more sales to the company, Still worth it." “The old-for-new policy is a policy of benefiting the people promoted by the government.†Wang Hongkai said, “On the surface, it seems that the family and the family have lost 5%, which seems to be a loss, but it is precisely because the company participates in the trade-in activities, the image of the store and Brand awareness has been greatly improved. Overall, the value!" Liu Chen, secretary-general of the Beijing Market Association Home Market Branch, said that this year's furniture trade-in policy is more rigorous and allows consumers to enjoy the benefits. The trade-in for the first half of the year, giving consumers enough time to consider furniture replacement, can effectively stimulate the growth of the furniture industry, which will drive the development of the furniture industry. Compared with these, the difficulties faced by enterprises are temporary and can be found in the process of practice. Home appliance companies use the old-for-new share Two years ago, the old-for-new trade was the first to pilot the home appliance industry. At that time, the old-for-new subsidy was 10% of the sales price of new home appliances, all of which was borne by the government, while the subsidy for furniture trade-in was 10%, but the government and the sales companies each took half. The reporter learned that during the old-for-new home appliance activities, in addition to the government's 10% subsidy, most of the home appliance stores launched activities such as double subsidies. In other words, the appliance store has also given the same amount of subsidies to give back to consumers. From this point of view, the situation faced by furniture sales companies now seems to be quite similar to the appliance stores of the year, but why are the enthusiasm of the two different? Experts pointed out that this is because the operating mode of home appliance stores is different from that of furniture stores. Appliance stores purchase products from home appliance companies, and then sell them at a higher price to earn the difference. Even if a certain amount of subsidy is paid, it will only be earned less, and the company will not lose money, but the resulting increase in sales can compensate for the expenditure to a certain extent, the so-called small profits but quick turnover. However, the business model of furniture stores is closer to commercial real estate. Even if some stores charge sales commissions, they are only a small part of revenue. Store rental income is still the main source of income for home stores. Under this model, companies paying for old-for-new subsidies are equivalent to self-sufficiency, and they cannot be filled by “multiple salesâ€. Zhang Feng, deputy manager of Gome Guangxuan, said that the 5% involved in the furniture trade-in policy should be affordable for furniture stores. He believes that the current home appliance and furniture industries are at a low point, and the relationship between the furniture industry and the real estate market is closer than that of the home appliance industry. Old-for-new can stimulate old owners to eliminate and update existing furniture, even though they may not have demand for home ownership. "At present, furniture trade-in is more to stimulate consumption and promote the development of the furniture industry." Gu Haibing, an economics professor at Renmin University of China, pointed out. He believes that in addition to driving consumption, the old-fashioned home appliances also involved energy-efficiency upgrades, eliminating old energy-consuming appliances, and saving energy and protecting the environment. In addition to the promotion of trade-in, the furniture industry should promote the concept of green economy. For example, the most noteworthy issue in the furniture industry is environmental protection. 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