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ATRenew, which operates China's largest online trading platform for pre-owned consumer electronic devices, is poised to benefit from Beijing's subsidy programme for consumer goods to boost flagging consumption.
ATRenew and e-commerce partner and stakeholder JD.com launched promotions to coincide with the Lunar New Year holiday, said Jeremy Ji Zixiao, general manager of international business and head of strategy and investor relations.
"We will work together with our major shareholder JD.com to provide attractive product offerings and additional incentives for consumers to take advantage of the opportunity," he said, without elaborating.
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From January 20, Beijing began offering a subsidy of 15 per cent for consumers buying new smartphones, tablets and smartwatches worth up to 6,000 yuan (US$828), with a cap of 500 yuan per item per category. The scheme is part of a nationwide trade-in programme launched last year to boost consumption and support the manufacturing industry.
Jeremy Ji,Zixiao, general manager of international business and head of strategy and investor relations at ATRenew. Photo: Xiaomei Chen alt=Jeremy Ji,Zixiao, general manager of international business and head of strategy and investor relations at ATRenew. Photo: Xiaomei Chen>
Chinese consumers, concerned about employment and wage prospects amid a slowing economy, have tightened their purse strings. As a result, China's real consumption growth is expected to hover around 3.8 per cent in 2025-26, according to a UBS report on January 20. Consumption grew by 5.5 per cent in 2019 and 6.2 per cent in 2018 before the Covid-19 pandemic, according to the National Bureau of Statistics.
Ji said he expected Beijing to maintain the scheme for the entire year in a bid to boost consumption, which would spur its collection and trading volume.
Shanghai-based ATRenew's business could benefit from consumers' propensity to buy used devices amid a multi-year economic slowdown, said Michael Kim, an analyst at Zacks Small-Cap Research.
"[As] average prices for new phones continue to trend higher [it will] stimulate demand for pre-owned devices," he said.
ATRenew had about 1,800 self-operated and jointly operated stores in more than 260 cities across the nation at the end of last year. It aims to boost the number of stores to 5,000 by 2027 and employ 5,000 workers to provide on-site device quality inspection, data cleaning, pickup services and trade-in prices.