Beijing,China:On May 7,2012,the Beijing Municipal Commission of Commerce denied reports that it will introduce policies to stimulate domestic furniture consumption.
Beijing Business Today reported that incentives to encourage locals to trade-in their existing furniture will be introduced in July later this year.However,a spokesperson for the Beijing Municipal Commission of Commerce has said the report is inaccurate and that no plans have been set to implement the new policy.
According to Beijing Business Today,the new policy is estimated to increase furniture consumption by several hundred billion yuan.The details of the policy are still unclear,but it is thought to be modelled after similar government incentives for trading-in used cars and upgrading used appliances.
In addition to promoting new furniture purchases,the government is also considering more subsidies for housing,appliances and other related expenses.Industry insiders say there are a few issues that need resolving before the furniture trade-in policy can be properly implemented:Such as how to evaluate and reuse the old furniture.Some furniture outlets have already begun offering discounts to capture a share of the flood of demand expected to result from the policy.