Boosting Holiday Shopping How China's Trade-in Program Drives Consumer Sentiment

Boosting Holiday Shopping How China's Trade-in Program Drives Consumer Sentiment

Boosting Holiday Shopping How China's Trade-in Program Drives Consumer Sentiment



Boosting Holiday Shopping How China's Trade-in Program Drives Consumer Sentiment

China's consumer goods trade-in program has remained a highly popular initiative at the start of the year, particularly during the Spring Festival shopping season. The Ministry of Commerce (MOC) reported receiving subsidy applications for 10.79 million electronic devices over a four-day period starting January 20, following the inclusion of mobile phones, tablets, and smartwatches in the trade-in subsidy program.

The expansion of the initiative, which was launched in March last year, has led to significant growth in trade-ins. As of January 23, automobile and home appliance trade-ins had reached 34,000 and 1.04 million units, respectively, according to the ministry.

The Spring Festival, or Chinese Lunar New Year, is the most important holiday in China, marking an occasion for family reunions. This year, it falls on January 29.

The strong participation in the trade-in program has boosted consumer sentiment in the holiday market. According to Vice Commerce Minister Sheng Qiuping, the program, along with a series of shopping promotion events, will help meet the growing demand for Spring Festival shopping.

Since last year, trade-in has become a buzzword in China's consumer market, driving steady retail sales growth and boosting consumer sentiment. In 2024, more than 6.8 million vehicles were traded in, while over 56 million home appliances were sold under the program. The total sales value of eligible products topped 1.3 trillion yuan (approximately $180 billion), highlighting strong market vitality and immense potential.

The trade-in program has revitalized consumption momentum, promoted a more sustainable economy, and enhanced the quality of life for consumers, according to MOC official Li Gang. The program's success has also driven growth in smart and eco-friendly products, particularly new energy vehicles (NEVs) and energy-efficient appliances.

In recent years, consumer spending has become an increasingly important economic driver. In 2024, final consumption expenditure accounted for 44.5 percent of economic growth, boosting gross domestic product by 2.2 percentage points. Consumption now plays a more pivotal role than investment or exports in shaping the economic landscape.

New consumer trends in China have gained significant momentum, including a resurgence in tourism and rapid growth in digital entertainment, online education, and livestreaming e-commerce. Green products, such as energy-efficient appliances and NEVs, have also emerged as new growth areas.

In 2025, supporting consumption will remain a top priority for the government. At the Central Economic Work Conference in December 2024, China's policymakers highlighted the need to vigorously boost consumption and expand domestic demand on all fronts.

To support consumption, the government has expanded the trade-in program by including smartphones, tablets, and smartwatches, increasing the number of eligible home appliance categories from eight to 12, and adding a wider range of passenger vehicles to the program. Approximately 81 billion yuan has been allocated for the first round of funding for the program this year.

The government has also ensured that subsidies will be delivered to consumers quickly and conveniently, according to Vice Commerce Minister Sheng Qiuping.

Experts predict that with such supportive measures in place, consumer spending will continue to grow steadily this year, while the Chinese economy demonstrates strong resilience, underpinned by solid fundamentals and enormous potential.

Conclusion

The success of China's trade-in program has boosted holiday shopping sentiment, driving retail sales growth and promoting a sustainable economy. As the government continues to support consumption, we can expect consumer spending to continue growing steadily in 2025, underpinning the Chinese economy's resilience and potential.


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Edward Lance Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.

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