Boosting Holiday Shopping The Importance of Trade-in Programs in China's Consumer Market Note that there are no quotation marks around the title, as it appears to be a straightforward heading rather than an actual title with a subtitle.

Boosting Holiday Shopping The Importance of Trade-in Programs in China's Consumer Market

As the holiday season kicks off in China, the nation's consumer goods trade-in program has proven to be an invaluable driver of retail sales growth. According to recent reports from the Ministry of Commerce (MOC), the program received a staggering 10.79 million electronic device subsidy applications over a four-day period starting January 20.

The MOC's data also reveals that automobile and home appliance trade-ins reached 34,000 and 1.04 million units, respectively, as of January 23. This surge in participation is particularly notable given the program's recent expansion to include mobile phones, tablets, smartwatches, and a wider range of passenger vehicles.

The Chinese Lunar New Year, also known as the Spring Festival, is the country's most important holiday, marking a time for family reunions and celebration. With the festive season in full swing, the strong participation in the trade-in program has boosted consumer sentiment and driven retail sales growth.

According to Vice Commerce Minister Sheng Qiuping, the program, combined with various shopping promotion events, will help meet the growing demand for Spring Festival shopping. The initiative's success is a testament to its importance in driving consumption and promoting a more sustainable economy.

In 2024, the trade-in program generated impressive results, with over 6.8 million vehicles traded in, including gasoline-powered and electric cars. Additionally, sales of home appliances, such as refrigerators, washing machines, and computers, reached over 56 million units. The total sales value of eligible products under the program topped 1.3 trillion yuan (approximately $180 billion), highlighting the program's immense potential.

The surge in purchases of smart and eco-friendly products is particularly noteworthy, with new energy vehicles (NEVs) and energy-efficient appliances experiencing significant growth. Notably, these trends align with China's efforts to promote a more sustainable economy and enhance the quality of life for consumers.

Recent years have seen consumer spending become an increasingly important economic driver in China. 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 pivotal role in shaping the economic landscape, surpassing investment and exports as the primary driver.

New consumer trends are emerging in China, 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. As part of its ongoing efforts to boost consumption, China has expanded the trade-in program to include a wider range of eligible products and increased funding allocation. Approximately 81 billion yuan has been allocated for the first round of funding this year.

The government's commitment to ensuring subsidies are delivered quickly and conveniently will further support consumer spending growth. 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.

Edward Lance Arellano 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.