The “eyebrows†of consumer finance and consumption scenarios have spawned financial scenarios, especially in the second, third and fourth tier cities. However, the rise in the non-performing rate also indicates that the combination of the two is not "one-stop." But the market has already sniffed out the business opportunity of “financial scenarios that can solve consumer pain pointsâ€. So, who is in the consumer finance market of the Nuggets from 300,000 to 40 trillion yuan?
Focus on the mobile phone store and see it as a “cut†in the consumer finance scene.
There is a mobile phone shop of more than 100 square meters near a subway station in Longgang, Shenzhen. It sells about 30 mobile phones every month through financial instalment. This mobile phone shop also cooperates with Gitzo, 佰仟Finance and CMA CGM. Approximately 70 mobile phones can be sold only through the installment of consumer financial institutions. Most of these phones are Huawei, OPPO and vivo. In the peak season of the 11th and the New Year's Day, the store has 200-300 sales per month, and in the off-season, it can sell more than 100 mobile phones every month.
This is not a simple phenomenon in Shenzhen. In Harbin, thousands of miles away, there are several mobile phone shops in almost every street. Some streets and even several stores are crowded together. Although each store is not large, OPPO and vivo bright LOGO are hung in mobile phone stores. In addition, Harbin in the early spring is particularly conspicuous.
Why have mobile phone stores opened all over the country in recent years? The financial power behind the mobile phone store - consumer financial institutions have contributed. With the consumption concept of advanced consumption and credit consumption gradually becoming the mainstream idea of ​​the consumer market, mobile phone 3C consumer finance has become a must for all families. Consumer financial institutions have targeted a group of people who are able to accept new things. Strong, but not a banking service customer, a group that is not available to traditional financial services. This type of customer is the target customer of consumer financial institutions, and mobile phone stores have become an excellent consumer scene. “Finance is revolving around the needs of consumers and re-engineering the new industrial ecological logic. It is iterating from 'funding-scenario-people' (product-site-customer) to 'person-scenario-funding', and funds are no longer a core advantage. It's hard to form stickiness, the scene can stick to the customer; and even if the channel cost of some funds is slightly higher, in some scenarios the efficiency is higher, or the scene premium is higher, the return will be better.†Ali Finance Xu Min, general manager of Cloud, told reporters.
Mobile phone shop in the second, third and fourth tier citiesToday, when e-commerce has seized the market and retail prices are transparent, the gross profit of offline store sales is getting lower and lower, while the rigid costs such as rent and labor have been rising year after year. It is an indisputable fact that traditional retail enterprises have entered the era of low profit. When Ali and JD have used the e-commerce model to defeat the mall, the mobile phone shop has blossomed everywhere in the second, third and fourth tier cities. Take Harbin as an example. Hundreds of mobile phone shops are irregularly distributed in the main streets of the main city. There are even several shops open at the corners of the crowd. “It seems that the phenomenon of mobile phone sales is behind the phenomenon of consumer finance.†A local person who is doing money matching business told reporters that many shopkeepers did not sell mobile phones before, but did small loans, and the real economy has been sluggish in recent years. The risk of small loan business is relatively high, and it is turned to mobile phone stores. Because of the difference in earning mobile phones, while earning points back, the profit is very objective. “Some shopkeepers have opened more than a dozen stores, so there will be so many mobile phone stores in the entire city. I also recommend customers to buy mobile phones,†he said.
In addition to a variety of mobile phone stores of various sizes, Dickson, Gome, Suning and other local branches of the three major telecom operators also provide mobile phone staging services.
However, this phenomenon rarely occurs in first-tier cities such as Beijing and Shanghai.
佰仟 Financial user portraits show that most people who use mobile phone staging are living in third- and fourth-tier cities and labor-intensive areas. The age is between 18-25 years old, and the monthly salary is usually below 5,000 yuan. OPPO, vivo, Huawei, Gionee and other products of 3,000 yuan, with advanced consumption awareness. "For first- and second-tier cities, most people are already cardholders of bank credit cards. Most of them like to use Apple and Huawei's high-end machines. Young and blue-collar workers in first- and second-tier cities are the target customers of consumer finance, so Shenzhen There are a lot of mobile phone stores outside Guanwai, but there are fewer insides.†According to the person in charge of finance, as of March 2017, 佰仟Finance cooperated with more than 120,000 retailers, and 佰仟 Finance adopted a sales-resident model. Cooperative stores are stationed in the office to provide consumer financial loan services to target customers. For every mobile phone sold, 佰仟Finance will pay a certain percentage of the rebates of the merchants, benefiting from the profit of the mobile phone.
With the penetration of consumer finance companies into the market, consumer installment services have basically covered offline mobile phone stores across the country. The emergence of consumer staging has brought the 3C brick store to a certain extent to promote the development of the offline mobile phone sales industry.
Unlike 佰仟Finance, Gitzo mainly cooperates with OPPO and vivo. The cooperation mode is the traditional resident-style loan sales model. In the OPPO and vivo mobile phone sales stores, Gitzo POS is set up according to customer needs. The model and amount of the purchase, providing instalment loan service. As of the end of February this year, Gitzo has more than 158,000 POS points (loan service points) in China, distributed in 29 provinces and 312 cities in China.
“Gitzo has always been committed to inclusive finance, and has not been able to enjoy the consumption structure of traditional financial services. Mobile phones and computers are the products most needed by consumers in China today. Therefore, mobile phones account for Gitzo’s consumption. A large proportion of loans, this is more from the needs of consumers as the starting point." Gitzo people told reporters.
Only Financial and Gitzo have more than 200,000 loan service points across the country, and there are far more than two mobile phone staging services in this market.
Behind the phone shopIn Binzhou, Shandong Province, Mingjia purchased a vivo mobile phone with a total price of 2,498 yuan, only paid 260 yuan, and the other 2,238 yuan was repaid through 10 points of Gitzo, paying 279.35 yuan per period. According to the agreement, the total interest of this installment business is 220.89 yuan, and the total cost (including customer service fee, loan management fee, handling fee and flexible repayment service package fee) is 334.61 yuan, and Mingjia needs to pay in addition to the loan principal. The amount is 555.5 yuan.
The above-mentioned person who is doing the money matching business in Harbin told reporters that the mobile phone shop owner can get the full amount of the mobile phone in time, on the one hand, 5-8 percentage points from the installment amount, and the settlement method of the consumer finance company and the store owner is generally T+0. Or T+1, plus mobile phone price difference, each mobile phone profit is nearly 10%, but different mobile phones, different channels, different subsidy methods, the profit is different.
"Now our main product is '008', that is, zero down payment, zero interest rate, and payment in 8 installments." Gitzo told the Economic Observer that such a concession to consumers, Gitzo relies on the commission of the partner merchant to maintain Business development, at the same time, merchants can also promote sales, is a win-win cooperation model.
Although zero down payment and zero interest rate, the total cost remains unchanged, which is one of the profit methods of Gitzo and partner merchants. According to the reporter's understanding, there is not much difference in interest and fees for mobile phone installment products provided by various companies.
“Mobile phone consumption segmentation reflects the user’s willingness to consume and does not improve the user’s ability to repay.†A person from an online consumer financial institution told reporters that consumer financial institutions rely on offline staff for face-to-face review and user submission. The information is combined with the back-end online system for cautious review, and the offline pass rate is generally 60%-80%. With the development of science and technology, the business of many organizations such as Gitzo is moving online. The anti-fraud ability is an important factor in the risk control capability. The online platform mainly acquires user information through information technology such as big data and machine learning. The credit value is evaluated from different dimensions such as long-term borrowing.
With the continuous expansion of the mobile phone market, the product defect rate has shown a rapid rise. According to an industry source, the average NPL ratio in the second half of last year was more than four points, and it has now climbed to around 7%.
“Online store launches mobile phone staging, which is in line with the strong market demand, providing young consumers with meticulous financial services and recognition of the market segments.†Xiao Cheng, a partner of Dacheng Law Firm, said that although the Internet Financial turmoil, but real-life financial scenes are also steadily moving forward. If you withdraw the concept of "Hyun", whether it is online or offline, as long as financial consumers really have demand, there is a market for consumer finance. In the foreseeable future, market demand will drive companies to find financial scenarios, solve consumer pain points in the scene, and help manufacturers to sell products or services, which is a "three wins."
In addition to mobile phone staging, this model has been replicated in other industries. Gitzo said that as long as it is a consumer product that meets market and consumer needs (not involving auto loans and mortgages), Gitzo will further develop. At this stage, in addition to 3C products such as mobile phones and computers, cooperative products include electric bicycles and motorcycles.
In fact, according to Dr. He Fei, a special expert of the Shanghai Pudong International Finance Institute's Financial Academic Committee, from the perspective of foreign development, the initial consumer finance is the consumption staging model provided by physical stores and retail stores. Compared to financial institutions, physical businesses are more aware of consumer needs and have a scenario advantage. In this context, several different consumer finance institutions have been formed in China. One is to own a physical store, obtain a consumer financial license through joint ventures, and develop a consumer finance business, that is, an industrial consumer finance company; Shop, but has e-commerce platform and online consumption scenarios, that is, e-commerce Internet consumer financial institutions; there is also a non-consumption scenario, and must provide consumer financial services through cooperation with entities, including commercial banks and banking departments. Financial companies, Internet staging platforms, etc. At present, the third mode of employment is more common, and since consumer financial services are mainly for long-tailed people, they are usually dominated by college students and blue-collar workers. Considering the income and consumption levels, 3C products have become the main consumer financial products. Many people like it.
However, He Fei believes that in addition to scene acquisition, the most important factor in consumer finance is to control risk. Currently, fraud risk and credit risk are the two main risks of consumer finance. Among them, the former is an urgent problem faced by Internet consumer finance institutions, mainly through the exploitation of fraud rules. The latter is a common problem faced by consumer finance institutions. Due to the special nature of the long-tailed people, the institutions cannot conduct credit according to the PBOC credit report. Usually, they need to obtain other “alternative data†to evaluate the credit status of the borrowers based on these data.
Boston Consulting predicts that the balance of consumer finance loans will increase to 300,000 to 40 trillion yuan by 2017. Among them, the funds provided by banks will account for the majority, but the unmet needs of banks are increasingly attracting consumer financial institutions, and some scene consumption is becoming the focus of consumer financial institutions.
"The era of domestic consumption accounting for a larger proportion of economic activity has just begun." Fan Gang, a member of the central bank's monetary policy committee and director of the National Economic Research Institute, said recently that household personal consumption credit has the highest proportion in all categories, more than 20%. Although 3/4 is a mortgage loan to buy a house, only 1/4 is a consumer loan, but it is already quite a lot.
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