Shulou(Shulou.com)11/24 Report--

Recently, a series of policies conducive to the construction of recycling system of waste household appliances have been introduced. From the "package of policies and measures to stabilize the economy" issued by the State Council, to the typical experience and practices of the first batch of household appliance production enterprises' recycling target responsibility system announced by the National Development and Reform Commission, and then to the Ministry of Housing and Construction to support recycling enterprises to carry out door-to-door recycling of waste household appliances, each time has aroused great concern both inside and outside the industry.

Encouraged by the national policy, the recycling of waste household appliances has become a key link in promoting the development of green and low-carbon recycling and improving the efficiency of resource utilization. Home appliance manufacturers and e-commerce channels have increased the recycling of household appliances and cultivated the "Internet + recycling" model to open up the recycling industry chain of waste household appliances. Among them, JD.com announced that the joint household appliance brand will launch a trade-in subsidy of 1 billion to promote the renewed consumption and green development of the home appliance market.

The harm of extended service of household appliances in the peak period of scrapping is serious.

According to data from the National Household Appliance Industry Information Center, the number of household appliances in China has exceeded 2.1 billion, of which a considerable number of household appliances were purchased during consumption-stimulating activities such as "trade-in for new appliances" and "home appliances going to the countryside" between 2009 and 2013. According to the safe service life of 8-10 years of household appliances, these household appliances are about to or have entered the phase of elimination.

At present, most consumers do not have a clear concept of "life" for the use of home appliances, thinking that even if there is a failure, repair can continue to be used. But in fact, over-age household appliances are very harmful. If the air conditioner has been used for more than 10 years, aging wires will lead to short circuit or fire, especially high-altitude electrical appliances such as external air conditioners may fall off and cause serious injury. Refrigerator for more than 7 years, the decline of refrigeration performance will lead to food decay and expiration, affecting the health of users. Aging TV picture tubes can also cause cancer.

According to the Fire and Rescue Bureau of the Ministry of Emergency Management, a total of 636800 fires were reported nationwide in the first three quarters of 2022, killing 1441 people and causing direct property losses of 5.5 billion yuan. Among them, the proportion of fires caused by electrical appliances is high, reaching 198100, accounting for 31.1% of the total number of fires, which is the first major cause of fire. It can be said that a large number of old household appliances with extended service have become the main reason for threatening the safety of people and property.

According to the data provided by the China Household Electrical Appliances Association, the number of waste household appliances eliminated in China increases by 20% every year, and more than 200 million sets of waste household appliances were scrapped in 2022 alone. Therefore, it is of great significance to update and upgrade household electrical appliances. A few days ago, the National Development and Reform Commission and other three departments jointly issued the Circular on organizing the second batch of household appliance production enterprises to carry out the action of recycling target responsibility system (hereinafter referred to as the "notice") to further improve the recycling and disposal system of waste household electrical appliances and promote the renewal and consumption of household appliances. The Circular clearly states that on the basis of the action of the recovery target responsibility system of the first batch of household appliance production enterprises, encourage more household appliance production enterprises to actively expand recycling channels, innovate recycling methods, optimize storage facilities, smooth transportation network, strengthen flow management, improve processing capacity and resource recycling and other aspects of related work. Encourage e-commerce platform enterprises to actively cooperate with household appliance production enterprises, strengthen information sharing, jointly build recycling networks, strengthen the control of the flow of recycled products, deeply participate in the construction of recycling system of waste household appliances, and promote the renewal and consumption of household appliances and green development.

Time-consuming and painstaking? It is urgent to enhance the enthusiasm of the public.

The demand for recycling of household appliances in China is urgent and strong, and there is no doubt about the market potential, but at the same time, the recycling industry of household appliances is faced with a series of problems, such as weak awareness of trade-in, unreasonable valuation system, time-consuming and costly transportation of large household appliances, and so on. To a certain extent, it affects the enthusiasm of consumers to eliminate old household appliances and replace new ones.

"my air conditioner has been used for seven or eight years, and I want to replace it with a mother-to-child air conditioner with low energy consumption. the old air conditioner is in good condition. The individual recycling vendor who comes to my house not only charges a low price, but also charges a fee for dismantling the machine. All I have to do is ask me to give him the money." Mr. Zhao, a Zhengzhou citizen, said. Due to the lack of a reasonable valuation system, recyclers blindly drive down prices, resulting in high maintenance costs for consumers, while the prices of old machines are "worthless". According to third-party data, the price of home appliances for door-to-door maintenance is usually about 300-450 yuan, and because it involves a series of operations such as door-to-door, disassembly, handling and so on, consumers even have to pay backwards in many scenarios.

At the same time, unreasonable charging items and opaque prices have become the focus of consumer complaints. Recycling air conditioners, washing machines and other large household appliances need to be dismantled, and it is difficult to solve the problem at one time, one-stop, and there is the possibility of being charged indiscriminately. In addition, mattresses, toilets and other household goods not only can not offset the money, but also charge for dismantling and clearing, especially for households without elevators, they have to pay extra to the recycling master. All these undoubtedly leave consumers the impression that it is time-consuming and painstaking to trade old household appliances for new ones.

What is more serious is that at present, waste household appliances are recycled through formal channels, and the proportion of environmental protection disassembly and recycling accounts for only about 20%. A large number of small workshops engaged in informal disassembly only disassemble waste household appliances and throw away the rest at will, causing serious pollution to the environment, while some valuable parts and materials can not be used.

In response, Xu Dongsheng, vice chairman of the China Household Appliances Association, said: "Household appliance recycling can be said to be the weakest link in the whole cycle of household appliances. At present, the recycling industry is basically based on social popular recycling. There will be high time costs, opaque prices, non-standard services and other problems, restraining consumers' willingness to trade in old for new."

Obviously, the current household appliance recycling industry can not support the recycling and disposal of a large number of waste household appliances, nor can it provide consumers with a satisfactory recycling experience. It has become an urgent problem for the industry to improve the recycling system of waste household appliances, break through the recycling blockage, improve the recycling network, optimize the recycling channels and enhance the treatment capacity. In this regard, Xu Dongsheng believes that exchanging old for new is a major form of the consumer market for home appliances at present, but it is more difficult to replace than simply buy new, because many household appliances are installable and need to demolish the old and send new ones, which should be focused on and solved from the circulation industry to the manufacturing industry.

1 billion subsidies + innovative services to build a high-level recovery system

Under the guidance of the "notice" and other national policies, home appliance manufacturers and e-commerce channels have attached great importance to the investment of funds and resources in the recycling of household appliances, providing consumers with more convenient recycling services for waste household appliances, and making the iteration of the renewal of household appliances more convenient, greener and more efficient. An upsurge of building a recycling system of waste household appliances is in the ascendant.

As a representative of the new entity enterprise, JD.com fully integrates the advantages of the supply chain and works with the brand to effectively improve the recycling capacity of waste household appliances through a variety of measures. Through "Internet + recycling" and other models, JD.com accelerated the organic combination of online waste and offline recycling to improve the recycling capacity and standardization level of waste household appliances. The trade-in service jointly built with recyclers further promotes the construction of the circular economy model.

As for the consumer side, JD.com, as a bridge between household appliance brands and users, has accurate insight into the pain points and demand escalation points of consumers' lives, and works with household appliance manufacturers to continuously launch 1 billion subsidies, price reduction, free trade-in and new-step delivery, and three-free services, such as trade-in concessions and service items, especially for toilet, air-conditioning and other categories that need to be cleaned after demolition. JD.com also provides free cleaning services. Let users trade the old for the new without worries, and cultivate the public's awareness of the trade-in. At the same time, JD.com actively publicizes the harm of waste household appliances to help users understand the service life of household appliances and protect the personal and property safety of consumers.

"I'm going to buy a new TV in JD.com. As a result, not only can the old TV be replaced, but the old washing machine that has been idle for more than a year can also be used to replace it. It not only saves more than 400, but also makes it convenient and cost-effective for the master to send the new to the door and pick up the old." Guiyang citizen Ms. Wang said.

On the one hand, with the advantages of trade-in services, supply chain capabilities, and omni-channel empowerment, JD.com works with manufacturers to effectively improve the recycling capacity of waste household appliances and help manufacturers achieve their recycling goals. On the other hand, JD.com solved a series of problems, such as spending money to "send the old" and "welcome the new", many complicated routines of subsidies, non-synchronization of sending the new and replacing the old, and the high time cost of multi-party communication, thus relieving consumers of their worries and igniting the public's enthusiasm for exchanging the old for the new. According to data from the Beijing Green Exchange, between July 1, 2022 and June 30, 2023, JD.com household appliances reduced carbon emissions by about 154900 tons through the trade-in of eight types of household appliances, such as refrigerators and washing machines. In addition, JD.com 's data show that during the JD.com period, the turnover of trade-in for home appliances increased by 150% compared with the same period last year, and the number of orders for the purchase of extended insurance services for home appliances increased by more than 230% compared with the same period last year.

Now, the second batch of household appliance production enterprises recycling target responsibility system action has been carried out in an all-round way. JD.com, together with upstream and downstream manufacturers and recyclers, has comprehensively built a high-level recycling system, leading the accelerated development of the home appliance recycling industry. Industry insiders said that the recycling of waste household appliances in China will pry the industrial chain of circular economy to become bigger and stronger, inject new vitality into the renewal consumption of household appliances, and further stimulate the consumption potential of household appliances.

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