The policy of trading in old for new helps to unleash the demand for consumer electronics, and AI technology products are favored.

Reporter Li Wanchenxi from this newspaper.

Recently, Guizhou, Jiangsu, and other places have further expanded the old-for-new policy, including consumer electronics in the subsidy scope. According to reporters, so far, many places have included 3C consumer electronics products in the scope of the old-for-new subsidy, and the policy implementation effect is obvious.

“Under the stimulus of the trade-in policy, there has been a significant increase in consumer demand for consumer electronics, directly driving the rise in sales of related products. At the same time, the policy encourages the purchase of products with higher technological content, incentivizing companies to increase R&D investment, promote technological innovation and product upgrades. In addition, the rapid update and replacement of consumer electronics products have put higher demands on the efficiency and responsiveness of the supply chain, thereby promoting the optimization and upgrading of the supply chain.” said Bai Wenxi, Chief Economist of the China Enterprise Capital Union China Region.

The subsidy scope continues to expand

The Department of Commerce of Guizhou Province announced that starting from December 1st, domestic mobile phones and tablets with a price of 3000 yuan or less will be included in the scope of subsidies for old-for-new appliances. The subsidy method is instant discount (no coupon required). The subsidy standard is a one-time subsidy of 20% of the purchase invoice amount. Each consumer can receive a subsidy for one item per category, and the subsidy amount for each item does not exceed 600 yuan.

On November 26, Jiangsu Province issued the “Guidelines for the Special Subsidy Program for 3C Digital Products” and the “Notice on Adding Subsidized Goods Categories for the 2024 SuXin Consumption · Green Energy-saving Home Appliances Trade-in Special Activity”, adding 7 categories of 3C products including mobile phones and tablets, as well as 20 categories of home appliances to enjoy a 15% subsidy.

In addition, in August this year, Hubei Province issued 100 million yuan of “Hubei Purchase Benefit” 3C digital product consumption vouchers across the province. Consumers can enjoy discounts when purchasing six categories of electronic digital products such as mobile phones, digital cameras, smart watches, learning machines, translators, and wireless Bluetooth headsets. For personal consumers in Guangdong Province purchasing tablets and smart wearable devices, if the order amount exceeds 500 yuan, they can enjoy a one-time discount subsidy of 15% of the product’s selling price, with each subsidy not exceeding 2000 yuan.

The person in charge of the Suning Easy Buy’s trade-in program revealed that, taking Jiangsu as an example, during the first natural week of subsidies from November 27th to December 1st, the sales of mobile digital products rose by 1701% year-on-year. The demand for trade-ins is concentrated in mobile phones, tablet computers, followed by smartwatches, Bluetooth headsets, and other categories.

“Currently, policies supporting 3C digital products such as smartphones mainly focus on local subsidies and trade-in programs. Depending on the different industries and financial situations in each region, the subsidy scope has been extended to include consumer products such as mobile phones and smart wearables. With the assistance of these policies, the market’s consumption potential has been further explored, leading to a significant increase in demand for consumer electronics,” said Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance.

CITIC Securities research report stated that it is expected that consumer electronics categories such as mobile phones and AIoT terminals will be included in the 2025 3C national subsidy, and the subsidized categories will be further expanded.

“Driven by the policy of trading in old for new, we are optimistic about the further introduction of subsidy policies. On the one hand, it will expand the subsidy categories, including mobile phones, AIoT, and other categories. On the other hand, it will extend the subsidy period, driving the consumer electronics industry chain into a prosperous cycle,” said Guo Tao, deputy director of the China E-commerce Expert Service Center.

Assist in the technological innovation of the industry.

The implementation of the trade-in policy in the consumer electronics field not only stimulates the consumer market, promotes the accelerated landing of new AI technologies and products, but also brings significant Favourable Information to related companies in the industry chain, helping the technological innovation and sustainable development of the industry.

Recently, the sales of AI technology products have shown a strong rise, especially in the consumer electronics field, where the application of AI technology has driven product innovation and market rise. Yuanshuai stated that AI technology products are most favored in the consumer electronics upgrade wave, mainly due to the widespread application of AI technology and the changing consumer demand, and the policy of trade-in also promotes this trend to a certain extent.

“With the widespread application of AI technology, related technologies are driving the continuous update of digital products. Smart terminals such as mobile phones and PCs are accelerating the integration of AI functions, bringing about new changes in the consumer electronics industry,” said Lin Xianping, Executive Deputy Secretary-General of the China Urban Expert Think Tank Committee.

To meet the diverse and personalized needs of consumers, many listed companies in the consumer electronics industry chain are actively promoting the upgrading of new-generation artificial intelligence terminals, and accelerating the exploration and implementation of new technologies and products.

Jiangda Circuit recently stated that the company is actively deploying industrial control automation and digital products, high computing power products such as AI servers and switches, electrification and intelligent products for automobiles, consumer electronics products applying AI technology, etc.

Jiang Bolong said that from the trend point of view, the landing of AI on the terminal side is still a high probability event, and the overall prospects of the consumer electronics market are still promising. The company will fully utilize its own technology, products, brands and other comprehensive advantages, actively seize the industrial opportunities, and achieve continuous breakthroughs in business.

Walkers also said that various new products with AI-related functions are under development, and the company will integrate the technology accumulated in the electronic and acoustic fields for many years, combined with an understanding and grasp of consumer demand, relying on its own Supply Chain capabilities, and launch relevant products to the market in a timely manner.

“Consumer demand for 3C digital products is no longer limited to upgrading, but has higher expectations for services, prices, quality, etc. This trend not only promotes the rapid iteration of electronic products but also has the potential to further unleash domestic demand.” Guo Tao said.

Yuan Yu, senior analyst of CCID Consulting Electronic Information Industry Research Center, said that artificial intelligence continues to innovate and integrate in the consumer electronics field, driving a wave of AI smartphones, AI personal computers, smart home robots, and other consumer electronics products.

Securities Daily Voice “Securities Daily” is supervised and organized by the Economic Daily and is a designated newspaper for information disclosure by the China Securities Regulatory Commission, the China Banking and Insurance Regulatory Commission, and the China Banking and Insurance Regulatory Commission.

Source: Sina

Author: Securities Daily