Home appliance companies do not want to get into the recycling industry without profit

The State Council approved a paper approved by the Development and Reform Commission and other departments to "enhance the expansion of domestic demand, to encourage cars, home appliances," replacement program". The National Development and Reform Commission said that the “new-for-new” policy will replace 5 million home appliances and facilitate the recycling of resources.

However, in the face of a huge home appliance recycling market, home appliance manufacturers that are known for their production are mostly unwilling to deal with it. "Recovered home appliances mostly can only be treated as waste copper and rotten iron, but also have to add labor costs, it is better to directly outsource to the recovery unit." A home appliance manufacturer said.

"Refresh" to update 5 million home appliances?

Following the “home appliances going to the countryside”, the introduction of the “old-for-new” policy for household appliances has undoubtedly provided a good opportunity for urban consumers to upgrade their home appliances. According to the State Council’s deployment, this year’s state finance will arrange 2 billion yuan for television, Computers, refrigerators, washing machines, air conditioners and other five types of home appliances "old for new" subsidies, the maximum amount of subsidies does not exceed 10% of the sales price of home appliances.

"Because the groups faced are urban residents with higher spending power, if the policy of 'replacement of old ones' can be continued, the effect of boosting household appliances consumption will be no less than the stimulation of 'home appliances going to the countryside'." TCL Group Brand Management General Manager Liang Qichun pointed out in an interview with reporters. He told reporters that at present, a considerable number of TVs, air conditioners, and other products in Beijing, Shanghai, and Guangzhou are close to or even exceed their useful lives, and the policy of “replacement of old ones” may lead to a new wave of upgrading. The “General Requirements for the Use of Household and Similar Electrical Appliances for Safe Use and Recycling”, which was implemented by the state on May 1 last year, also pointed out that the useful life of color TVs and air conditioners is 8-10 years, that of refrigerators is 12-16 years, and that washing machines are 8 years, the personal computer is 6 years.

According to the National Development and Reform Commission’s forecast, after implementing the “renewal old” policy for home appliances, it will be able to update 5 million home appliances. Calculated with an average price of 3,000 yuan for a home appliance, the replacement of 5 million home appliances will directly drive 15 billion yuan in home appliance consumption. At the same time, with a subsidy cost of up to 10%, 5 million home appliances contain at least RMB 1.5 billion in home appliance recycling market.

Most manufacturers are reluctant to get involved. However, the huge home appliance recycling market does not mean that home appliance companies are willing to get involved in recycling. In the interview process, many home appliance manufacturers have expressed that they mainly focus on the production field. Most of the recycling business is outsourcing or cooperation with the corresponding recycling units. In addition to TCL, Changhong and other companies to carry out color TV "old for new" activities, other home appliance companies are mostly unwilling to get involved in recycling.

“Using air conditioners as an example, the recovery prices for an air conditioner are mostly ranging from 150 yuan to 200 yuan. However, with artificial freight, dismantling costs, etc., it is not worthwhile to free up one hand to recycle used appliances. "A home appliance manufacturer who does not wish to be named says that most of the waste household appliances can only be treated as waste after recycling, and there are not many parts that can be recycled.

In home appliance stores, except for a few companies such as Gome and Suning, which provide “new trade” services, most other home appliance retail stores do not support the trade-in business.

"Regular Army" Can't Beat "Guerrilla"

In fact, an important reason why household appliance manufacturers do not want to be involved in the recycling market is that the recycling market in China is still in an unordered state, and it is unprofitable for manufacturers to recycle home appliances. Recycling tasks eventually fell on vendors who walked the streets. On the one hand, these vendors reduced the price of recycling. On the other hand, most of them did not handle the recycling process in accordance with the formal procedures, making the recycling market a vicious circle.

At the same time, due to the huge profit margins for the recycling of used home appliances, the “regular army” as a recycling company has to face the challenges of recycling “guerrillas” who are playing “obsolete items” billboards. “Recycling profits of used home appliances are more than 20%.” Lin Chuntao, chairman of Ogilvy Environmental Protection Investment, disclosed to reporters that as a formal environmental protection company, the biggest challenge is to be able to recover enough old household appliances, small vendors, and workshops. Has become the mainstream of recycling of used home appliances.

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