I have seen sofas or wardrobes that make me admire in the store, but the price factor may cause a one-time burden. Regardless of new houses, second-hand houses, want to decorate and worry about exceeding budget. As companies in the home furnishing industry have launched installment services, can these problems be completely solved? Shichuang Decoration Group also has a similar business. Financial Director Zhou Lihua told reporters that they have cooperated with China Merchants Bank, China Construction Bank and Huaxia Bank. If consumers already hold credit cards from the above banks, they can apply for the required amount of fees. For consumers who have not yet processed these bank credit cards, the designer can also contact the bank staff for assistance. The industry peak decoration also said that there is a similar business. The acceptance degree of furniture enterprises is not high
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Market dynamics
Some home improvement companies try to push installments
In fact, as early as two or three years ago, a home improvement company launched the installment decoration business, but when the particularity of the home furnishing industry encountered traditional consumer concepts, the new business of the home furnishing industry did not form the expected response. With the diversification of consumption methods, installment payment has once again become the focus of a new round of promotion for home improvement companies.
Wang Ke, the president of Yaguangya Decoration Group, told reporters that they cooperated with China Construction Bank during the “May Day†and tried to launch an installment business. Once consumers sign a decoration contract with them, they can get a VIP credit card of CCB, and the credit limit is increased to the same amount as the decoration contract. In other words, consumers can use credit cards to pay for decoration, and then return the arrears to the bank in installments. The repayment period is divided into 3 months, 6 months, 12 months and 18 months.
Although some home stores have launched installment payment services before, compared with home improvement companies, furniture companies do not accept installment payment in a high degree. The reporter found in the store interview that has cooperated with the bank to carry out this business that few furniture companies understand and accept this payment method. When the reporter asked if it could be paid in installments in some furniture stores, they all got negative answers. They told reporters that they can currently accept 20% of the first payment as a deposit, and the remaining payment can be paid at the time of delivery. But if you want to participate in discount activities in the store, you need to pay a one-time payment to participate.
People buy furniture is a large amount of consumption, installment payment can reduce the payment pressure of consumers, but not many consumers are willing to try this method, the store customer service staff told reporters that although the store launched an installment service in cooperation with the bank, but because of The unified cash register is adopted, and the general staff will inform the business when the consumer pays at the cash register. Although there are not many consumers who choose to pay in installments from the launch to the present, many people come to consult.
Consumer voice
"If the money is not enough, I will try to pay in installments"
Mr. Wang, who is paying at the checkout counter, told reporters that when he signed the contract, the sales staff did not tell him that he could use installments, and that he and his family had made a budget before buying furniture, so there was no need for a loan.
Ms. Li, who is planning to buy a set of living room furniture, heard that the store has this business and expressed her interest in it. She told reporters that her family had just purchased a three-bedroom apartment with a size of more than 120 square meters. Although she and her husband both liked solid wood furniture, they decided to buy panel furniture that was relatively cheap because of limited funds. "If you can really pay in installments, then I can buy solid wood furniture. The income of my husband and I is not bad, there is no problem with the repayment." Miss Li said.
In a random interview in the store, the reporter learned that many consumers are not in conflict with the installment payment, saying that if the funds are tight, they will consider the installment payment. However, some consumers said that the installment payment is equivalent to overdrafting future income, and without the pressure of the budget, impulsive consumption is likely to occur.
Industry views
Change consumption concept to accept new payment methods
Compared with a few years ago, people's consumption concept is changing, so the installment payment method has gradually been accepted by some consumers. Wang Ke told reporters that since the instalment payment was launched, only 40 or 50 consumers have chosen this method in just over 20 days. From the perspective of consumer groups, it is not just consumers with limited funds who are trying this method. Among the consumers who choose to pay in installments, there are both "just in need" with a decoration contract value of 50,000 or 60,000 yuan, and some 400,000 yuan. Single owner. "Just after the family needs funds, the installment payment can ease the pressure of their one-time payment, and many consumers with better economic conditions have financial plans. The installment payment avoids a large amount of capital transfer and will not affect their daily financial investment. "Wang Ke said.
Indeed, for some just-needed families who have just bought a home, the funds for decoration and furniture purchases are often limited, so even if they are interested in higher-priced furniture and building materials, they will give up because of price reasons, and the use of instalments not only It can alleviate the pressure of one-time payment, and can appropriately select higher-grade products according to its repayment ability.
At present, some white-collar workers are generally considered to be the largest group of installment payment for household products in the future. Qi Lin, general manager of Ronglin Shijia Furniture, said that there are not many consumers and merchants who accept installment payment when buying furniture. This is because For most consumers, the cost of buying furniture is not too much, and will leave a budget in advance. However, as they have higher and higher requirements for the quality of furniture and building materials, they will gradually accept instalments, and this business will usher in a period of vigorous development.
Strive to provide a longer interest-free period
At present, most home furnishing enterprises that accept installments pay by credit card. As long as the consumer's credit card has sufficient credit, they can pay the required fees in advance and then repay the bank in installments. At the same time, depending on the repayment period, the bank will charge a different proportion of handling fees. Take the 12-month repayment as an example, the proportion of bank fees is 8%, and decoration and furniture are large consumptions. According to this ratio, if the decoration fee of about 50,000 yuan is paid in installments, you need to pay the bank A handling fee of 4000 yuan. And who will bear the handling fee?
The reporter learned from the interview that almost all merchants indicated that they would not let consumers bear the full amount. Some companies say they will provide an interest-free period, for example, consumers pay within 12 months, there is no need to pay a handling fee, this fee will be borne by the company. Some companies will bear the handling fee together with consumers, but the proportion of companies will be higher.
The interest-free period of installment payment and who pays the handling fee will directly affect whether consumers are willing to try this method. Qi Lin believes that the threshold for instalment payments should not be set too high, and consumers must strive for a longer interest-free period and reduce or even reduce the proportion of their handling fees. It is difficult for a single furniture company to dominate the negotiation with the bank. If the store can link hundreds of companies to negotiate with the bank, consumers will benefit more.
Reporter observation
Payment installment
Service quality should not be divided into stages
Cash flow is a key factor for the sustainable operation of home furnishing companies, especially in the case of upstream real estate regulation affecting the decline in passenger flow, home furnishing companies need cash flow to maintain huge operating costs, and the instalment method is subtly eased Under this pressure, because the consumer pays by swiping the card, the bank will pay the money to the enterprise at one time, and then the consumer will repay the bank. In other words, after signing the sales contract, the enterprise can recover all the payment, which will undoubtedly shorten the time for the merchant to pay back.
But for consumers, after choosing installment payment, it is worth noting whether the merchant can still honor its promised service. Taking decoration as an example, the traditional payment method is 55% of the down payment, after the mid-term acceptance, another 40% of the mid-term payment is paid, and after the completion of the final acceptance, the final payment is 5%. It is a kind of "restriction".
If you choose to pay in installments, the decoration costs will be paid by the bank to the home improvement company at one time. Will the company's various service commitments to consumers be honored on time?
Taking furniture companies as an example again, returns and exchanges are often the case. If you choose to pay by installments, can you return or exchange goods smoothly before the repayment is completed?
It can be seen that, while helping consumers to purchase household products and services more economically and conveniently, it should improve all related links so that all consumers can equally enjoy the services and guarantees they deserve.