The Power of Trade-in Programs Boosting Holiday Shopping

The Power of Trade-in Programs Boosting Holiday Shopping

As China's trade-in program continues to gain momentum, it's no surprise that the holiday season saw a significant surge in sales. According to the Ministry of Commerce (MOC), a whopping 10.79 million electronic devices were traded in over just four days, with mobile phones, tablets, and smartwatches being particularly popular.

The Boom in Trade-ins

The expansion of the trade-in program, now including mobile phones, tablets, and smartwatches, has been a major driver of growth. Additionally, automobile and home appliance trade-ins have also seen significant increases, with 34,000 and 1.04 million units respectively being traded in as of January 23.

Strong Consumer Sentiment

The strong participation in the trade-in program has boosted consumer sentiment, with many shoppers taking advantage of the program to upgrade their devices or purchase new appliances. According to Sheng Qiuping, vice commerce minister, the program is expected to continue driving retail sales growth and boosting consumer confidence.

A Key Driver of Retail Sales Growth

The term trade-in has become a buzzword in China's consumer market, driving steady retail sales growth and boosting consumer sentiment. In 2024, over 6.8 million vehicles were traded in, while over 56 million home appliances were sold under the program.

Promoting Sustainable Consumption

The trade-in program not only boosts consumption but also promotes a more sustainable economy and enhances the quality of life for consumers. As MOC official Li Gang notes, the program has revitalized consumption momentum, promoting a more sustainable economy and enhancing the quality of life for consumers.

Consumer Spending A Vital Component of Economic Growth

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 Emerging

China's consumer market has seen significant growth in recent years, with new trends emerging such as 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.

Government Support

The government continues to support consumption by expanding the trade-in program and increasing funding for the initiative. As part of its efforts to boost consumption, China has allocated approximately 81 billion yuan for the first round of funding for the program this year.

Expert Predictions

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.