With China's expansion of nationwide consumption subsidies and trade-in programs to include digital products and home appliances, a new trend has emerged in Spring Festival shopping.
Data from JINGDONG (JD), China's largest e-commerce platform, shows that searches for “subsidy” and “trade-in” have exceeded 20 million in the past month. Mobile phones, washing machines, and refrigerators are among the most favored consumer items this year.
Li Jiayi, a procurement and sales specialist in JD's 3C (computer, communication, and consumer electronics) division, works in a warehouse that ships approximately 7,000 phones per hour.
"Since being added to the national subsidy program, our 3C digital products have become a top choice for Spring Festival gifts. From the launch of the subsidy until now, our nationwide smartphone sales have grown by 260 percent quarter-on-quarter," said Li.
Smartphone sales are also soaring in brick-and-mortar stores. A Huawei HONOR retail store in Beijing is bustling with customers.
"The subsidy offers a significant discount. I think it's a great opportunity to buy phones as Spring Festival gifts for my parents," said one shopper.
The subsidy plan has significantly boosted HONOR's mobile phone sales during the holiday season.
"Since January 20, our daily mobile phone sales have quadrupled," said Yao Yuxuan, the store manager.
JD's data also reveals that in many third- and fourth-tier cities, as well as rural households, trade-in orders have more than doubled this year as people take advantage of the opportunity to upgrade their home appliances during the Spring Festival.
In north China's Hebei Province, dishwashers have become popular among consumers as a newly subsidized item.
"We’ve been here before and considered buying one, but the price was over 10,000 yuan (about 1,391.54 U.S. dollars), which was a bit high. Now that the national subsidy is available, covering 2,000 yuan, I think it's a great deal. So today, we hurried over to buy it," Mr. Lu explained excitedly.
Appliance installers are also busy on the road, delivering and installing products to ensure a hassle-free holiday for customers.
"This is my sixth installation today. We’ve been busier since the subsidy plan was introduced, often working overtime. Regardless of whether it’s Chinese New Year’s Eve or the first few days of the new year, we’re always on call to serve our customers," said Wu Jinliang, an appliance installer at Haier.
China’s expanded subsidies boost Spring Festival shopping for digital products, home appliances
