On May 10, at Suning Rural E-commerce School Foundation and the First County-wide Internet + Circulation Development Forum, Suning announced the establishment of Rural E-commerce School and released rural e-commerce strategies for 2016.
As a leader of financial O2O in China, Suning Finance preliminarily completed the “Sales, Loan and Purchase” strategic pattern of rural finance in 2016 and has been relying on the three major financial services represented by Corporate Loan, Willful Pay[W2] and Suning Crowd Funding to help rural enterprises get loans, promote rural consumption and innovate in the sales channels of rural products.
The“Three-Three”Pattern of Suning Finance in Rural Market
In the meeting, Suning published[W3] the outstanding achievements in rural e-commerce. It is said that Suning direct-sales[W4] network covers more than 1,000 counties, 5,000 towns and 50,000 villages nationwide, which has created jobs for more than 30,000 personnel all over the country, incorporated 88 online Chinese-characteristic Stores of Sunning E-commerce[W5] and provided 10,000 types of selected agricultural product SKU[W6] , with the product sales amount up to more than RMB 1 billion.
The rapid development of Sunning rural e-commerce proves again the 2015 Rural E-commerce Sample Report released by iResearch. It is stated in this report that the rural online shopping market scale in 2016 will be up to RMB 460 billion. The combination of online and offline modes of Suning becomes an important way for users to shop[W7] .
Despite of this, rural e-commerce also meets some bottlenecks during its rapid development, such as diversified and dispersed subjects, unbalanced development in each region, short term, high frequency and small amount of products, high financial service cost, seriously unsymmetrical information, lack of effective guarantee and traditional collaterals; small coverage and low penetration rate of formal financial institutions. Therefore, rural finance cannot simply follow the previous mode and experience of urban finance. Instead, it needs to create brand-new rural financial business types from the aspects of channels, products and services.
In view of the aforesaid, Suning Finance will focus on the characteristics and development trends of rural finance, and by virtue of mobile internet technology and big data credit investigation technology, will create opportunities and space for solving rural financing problems.
Suning Finance formulates Three-Three strategy i.e. the three major financial services represented by Corporate Loan, Willful[W8] Pay and Suning Crow Funding plus the three major products serving finance[W9] customized for rural e-commerce including Yinongdai, Yichuangdai and Yichoudai, to serve rural market. In addition, Suning will also make information cloud available to small and micro enterprises in third and fourth-tier cities to facilitate local enterprises for better internet connection and Internet +[W10] .
Suning Finance will provide[W12] three major financial services for rural business starters. Suning Corporate Loan will provide stable supply chain financial services for pioneering enterprises, and with the function of borrowing and repayment on demand, Willful [W13] Pay of Suning can provide flexible capital lending and borrowing service. High-quality rural products can provide both online and offline experiences through unique O2O display mode of Suning Crowd Funding.
In February of this year[W14] , Suning Crowd Funding, together with Chinese-characteristic Stores[W15] of Sunning E-commerce and Jiangsu Agricultural Committee, launched a financial product of consumer rights and interests type, i.e. “Xiaofeibao”. Users can buy meat, fruits and vegetables, rice and other products from Jiangsu rural areas with consumption coupons. “Xiaofeibao breaks through the traditional e-commerce mode of agricultural products, and enables 'adding value while consuming’; the overall brand effect of special agricultural products in Jiangsu is gradually evident”, financial insiders said. The data show that “Xiaofeibao” has won nearly 100,000 person-time support and raised RMB 45 million.
The hardship in obtaining loans is yet to be conquered to develop rural finance. Traditional rural financial institutions run with lengthy approval procedures, lower lending efficiency and insufficient capital supply. To solve these problems, Suning Finance has made two business layouts i.e. corporate loan and consumption loan. At present, many pioneering companies in rural areas on the open platform have obtained different lines of credit[W16] to solve the problem of capital turnover.
Rural consumers can also buy products in direct-sale stores through Suning Willful[W17] Pay to enjoy 30-day interest-free treatment and a credit line of RMB 200,000 at maximum. Sunning Consumer Finance also opened fast and convenient application channels for users, including the official website, mobile terminal and other channels[W18] .
In addition, Suning Money[W19] Management has also broken through the time and space threshold to provide current money management (Lingqianbao[W20] ), fixed-term money management and other money management products for them[W21] to enjoy wealth appreciation.
With the development of rural economy, the peasants will earn more income and the market of rural finance will expand continuously; Suning Finance marches into rural finance market, which has not only realized the value position of inclusive finance and low-cost[W22] finance but also promoted its own business to occupy rural financial highland in advance and take lead in the industry.
[W1]Suning Finance Goes to the Countryside
[W5]Pavilions on Suning.com
[W6]SKU number of choice agricultural products
[W12]focus on providing
[W14]In this February
[W15]Chinese Featured Products Pavilion
[W16]credit line limit