The Chinese government’s initiative to promote the replacement of old household appliances with new ones has proven to be a triumph for both the economy and the environment in 2024. By introducing a substantial program aimed at phasing out outdated equipment, the nation has successfully stimulated consumer spending, spurred industrial growth, and fostered a greener economy.

Statistics from the National Bureau of Statistics show that the retail sales of household appliances and audio-visual equipment exceeded an astonishing 1.03 trillion yuan, marking a notable increase of 12.3% compared to the previous yearThis is not just a simple trend reveal; this figure eclipses records from 2017 when sales peaked at 945.4 billion yuan, and it makes history by surpassing the trillion markSuch growth in the household appliance sector underscores a significant surge in consumer demand, showcasing the effectiveness of government policies aimed at reviving the economy.

Central to this policy is the “old-for-new” replacement initiativeThe Ministry of Commerce reports that this program has had a multifaceted impactIt boosts consumer confidence and spending while simultaneously promoting the production of higher-quality goodsImportantly, the initiative has enabled the ongoing liberation of consumption potential within the countryThe strategy is evident in several outcomes: the scale of the appliance industry is expanding steadily, resource recovery mechanisms are improving significantly, green consumption philosophies are gaining traction, and overall competition in the sector has become more robust.

One of the remarkable statistics emerging from this initiative is that the replacement policy directly invigorated appliance consumption, contributing about 270 billion yuan in additional salesData from the Ministry highlights that, as a result of the program, over 62 million units of the eight major categories of home appliances were sold in 2024, underlining a concrete output of the policy

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The statistics further reveal that from September to December of the same year, there was an impressive monthly growth spurt in retail sales figures with increases of 20.5%, 39.2%, 22.2%, and 39.3% consecutively over four monthsSuch figures reflect a burgeoning market and a reinstated consumer his confidence during a crucial period.

The broader implications of this policy extend to supply-side dynamics as wellThe initiative has nurtured the development of new productive capacities by unlocking latent market demandWithin the appliance manufacturing domain, there has been a notable uptick in the production of air conditioners, refrigerators, and washing machines, with growth rates of 9.7%, 8.8%, and 8.3%, respectivelyMoreover, an impressive increase in exports has been recorded; the first 11 months of 2024 alone saw exports of nearly 4.1 billion units—a staggering 21.3% year-over-year boostKey products such as air conditioners, refrigerators, washing machines, and televisions contributed prominently to this export growth, with increases of 28.0%, 20.5%, 13.8%, and 10.9%, respectively.

The advancement of resource recovery systems has also been significantly affected by the policy framework facilitating efficient coordination among manufacturers, e-commerce platforms, and recycling enterprisesThe recycling numbers have soared, with an impressive 14.83% increase in the amount of old appliances collectedThis positive trend in resource recovery aligns with the national efforts to develop a structured recycling ecosystem, including the establishment of 32 pilot cities dedicated to the recovery of renewablesLeading firms such as Haier are pioneering industry-specific innovations, such as the creation of interconnected recycling plants, while platforms like Tmall engage with over 2,000 districts to facilitate recycling initiatives.

The rising consumer preference for green technology has been a defining aspect of this transitionThe sale of high-energy efficiency products among the eight primary categories in the old-for-new program now dominates, reaching over 90% in sales share

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This shift showcases a keen consumer interest in sustainability, reflected by the expanding availability of subsidies for environmentally friendly appliancesIn 2024, more than 20 provinces integrated green smart appliances like water purifiers and dishwashers into their subsidy scope, catering to diverse consumer needs.

The environmental impacts of this drive for modernization are projected to be significantAccording to the National Energy Center, the adoption of high-efficiency appliances is expected to lead to annual savings of over 10 billion kilowatt-hours of electricity for society as a whole, reinforcing China’s broader commitment to sustainability.

Simultaneously, the old-for-new initiative is not only rejuvenating consumer demand but is also reinstating profitability across various segments of the household appliance industryData revealed that during the first 11 months of 2024, the cumulative revenue and profit totals of the industry grew substantiallyAmong listed companies in the sector, approximately 93 out of 106 managed to achieve profitability by the third quarter, exhibiting a near 90% success rate in terms of performance.

Furthermore, this governmental policy provides tangible benefits to everyday citizens, representing one of the most effective macroeconomic measures in recent years, enhancing the sense of well-being and security among the populaceWith upwards of 37 million individuals participating in the appliance upgrade initiative, interest surged dramatically, witnessing a jump from one million participants to five million in just 50 days.

The revival of the offline market indicates a notable grassroots movementAround 100,000 offline market players and over 150,000 sales outlets across the nation are actively engaged in this swap program, highlighting a community-driven approach to consumptionImportantly, it has also empowered older adults; over 2.6 million individuals aged 60 and above took part in the transition, showcasing an inclusive approach to modernizing household appliances

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