"Policy subsidies + corporate concessions" activate new holiday replacement demand

Staff Reporter Jia Li

On February 11, the State Council Information Office held a press conference. Vice Minister of Commerce Sheng Qiuping stated that the upcoming Lunar New Year will have a 9-day holiday, and the Ministry of Commerce, in collaboration with nine other departments, has planned a special “Happy Shopping for the New Year” Spring Festival campaign. During the holiday, a series of high-value policy packages will be launched to promote festive consumption, including a focus on trade-in programs. It was announced that at the beginning of the year, the Ministry of Commerce, together with the National Development and Reform Commission and the Ministry of Finance, allocated the first batch of 62.5 billion yuan in national subsidies, which has already reached local commerce departments. During the nine-day holiday, local authorities will be guided to increase subsidy distribution to fully ensure consumers can apply for subsidies according to policy requirements.

“This concentrated release of high-value policy packages will effectively stimulate the demand for trade-ins during the festival, inject strong momentum into the consumer market, and accelerate the green and intelligent transformation and upgrading of industries,” said Wu Xuehui, Deputy Director of the Technology Achievement Transformation Collaboration Working Committee of the China High-Tech Industry Development Association, in an interview with Securities Daily.

Meanwhile, local governments have issued detailed policies around targeted coverage and streamlined processes, increasing supply and optimizing services to ensure the public fully benefits from policy dividends. Multiple policies are stacking to significantly lower the threshold and decision-making costs for consumers to trade in, while optimizing the supply chain to efficiently convert potential demand into actual consumption, providing solid support for activating the holiday market and promoting consumption upgrades.

Tan Junhao, an adjunct professor at Zhongnan University of Economics and Law, told Securities Daily that “the relevant measures to promote consumption are organically combined to form a multi-layered, three-dimensional policy synergy. From the allocation of funds for ultra-long-term special government bonds to the coordinated implementation mechanisms across multiple departments, and various consumption promotion policies working together, this series of ‘combination punches’ not only focus on upgrading and replacing major consumer goods but also aim to boost the vitality of daily consumption. It is expected to generate significant consumption momentum during the Spring Festival peak season and create favorable conditions for the popularization of green and smart products, thereby driving industry structural optimization and upgrading.”

Under policy guidance, home appliance and mobile phone industry listed companies are seizing the Spring Festival consumption window by optimizing supply chains, increasing subsidies, and innovating scenarios, fully leveraging and amplifying policy benefits.

For example, Skyworth Group Co., Ltd. (hereinafter “Skyworth”) has made targeted arrangements for the Spring Festival market. Chen Yajun, Director of the TV Market Department at Skyworth, told Securities Daily that the company has made precise forecasts and comprehensive online deployment in supply chain, inventory, and innovative consumption scenarios. They have focused on increasing stock of products with high energy efficiency subsidies, secured core production capacity in advance, and optimized warehousing and distribution networks to ensure uninterrupted logistics and installation services during the holiday, meeting the nationwide demand for instant trade-ins.

It is understood that Skyworth will adopt multiple strategies during the holiday, including policy benefits and scenario innovations. On one hand, they will fully stack national and corporate subsidies, launching bundle purchase discounts and other activities; on the other hand, they will create immersive experiences such as e-sports and art in offline stores, with live online broadcasts offering benefits to engage young consumers. Chen Yajun said, “This Spring Festival, we aim to use policy dividends to stabilize consumption, while also making home appliance consumption more fun and festive through art, e-sports, AI, and other innovative scenarios.”

A relevant person from Changhong Electric Co., Ltd. (hereinafter “Changhong”) said that under the influence of policies promoting trade-in and festive consumption, inquiries about green and smart products like energy-efficient air conditioners, TVs, and refrigerators have increased significantly before the holiday. Changhong’s AI TVs, air conditioners, refrigerators, and washing machines continue to increase investment and R&D in green products, focusing on “AI technology empowering quality of life.”

He revealed that during shopping festivals and other consumption scenarios, Changhong further amplifies the actual benefits consumers gain from trade-in policies. Specifically, the company stacks government subsidies with corporate subsidies during shopping festivals, with overall subsidies for energy-efficient products exceeding 15%. For core categories, Changhong also offers clear after-sales benefits such as free mounting, ultra-thin brackets, and “ten-year warranty.”

Mobile phone companies are also leveraging the opportunity. A relevant person from OPPO Guangdong Mobile Communications Co., Ltd. said that under the continued national subsidies for digital products, the company has launched limited-time Spring Festival flash sales, combining with national subsidies for double benefits.

(Edited by Wen Jing)