Huashenghaoche Announced The Cooperation With Jingdong Finance on The New Retail
According to bbtnews.com.cn, Huashenghaoche announced to cooperate with Jingdong Finance on the new retail on December 26, 2018. The "Super Brand Day" will be promoted on the official website of Huashenghaoche, Jingdong Finance, and almost 500 on-site direct sale stores.
Dec 27, 2018 /EqualOcean/ - According to bbtnews.com.cn, Huashenghaoche (花生好车), one of the famous auto financing companies in China, announced the cooperation with Jingdong Finance (京东金融) on the new retail on December 26, 2018. The "Super Brand Day" is promoted on the official website of Huashenghaoche, Jingdong Finance, and almost 500 on-site direct sale stores.
The "Super Brand Day" lasts from December 26, 2018 to January 6, 2019. Huashenghaoche provides discounts for some car models, and reward the old customers with CNY 500 Jingdong Gift Card who pull new customers in. With the large scale sales promotion on both Huashenghaoche official website and Jingdong Mall, Huashenghaoche has a high probability to increase its sales in the "Super Brand Day".
As auto financing are widely accepted by the customers overseas that western customers are used to buy a car through hire purchase or chattel mortgage, and the chinese market still have potential for the auto financing. Hence, BATJ (Baidu, Alibaba, Tencent, Jingdong) all entered into this market, Huashenghaoche's cooperation with Jingdong for "Super Brand Day" shows Jingdong values more in this market. Below is the various investments in auto financing companies.
In China, authorized 4S shops dominate the markets of new car in big cities. Hence, the strategy of Huashenghaoche is to expand their service in small cities and small towns. With lower down payment, customers have the ability to purchase a new car through Huashenghaoche, this is beneficial for the customers who cannot offer the full amount of a new car.
However, there still exists some potential risks that the customers may not understand the contract they sign to purchase a car from Huashenghaoche is a lease contract, which has a higher risk than loan. The customers' lack of full understanding of the potential risks may bring a reputation reduction in the future.
- Author: TANG Shiyu. Write to TANG Shiyu at ShiYu@EqualOcean.com