Editor’s note: Three years ago, President Xi Jinping launched China’s ambitious Belt and Road Initiative, to connect vast transcontinental swaths with a common economic thread. The initiative has provided unprecedented opportunities for companies around the world to expand their businesses and access new markets. China Daily will feature a series of interviews with senior executives from overseas companies, examining the impact of the initiative on their operations as well as markets. Ondrej Frydrych, managing director of Home Credit Group in China, explains how the international consumer credit provider will work closely with Chinese partners to further diversify their earning power.
Home Credit Group, an international consumer credit provider based in the Czech Republic, will work closely with Chinese partners to add the number of loan products in Indonesia and India over the next five years to further diversify their capacity. gain, said its leader.
Many of these opportunities come from the rapid development of the Belt and Road Initiative with an increasing volume of trade and investment, as well as the growing demand of these countries for consumption upgrading, foreign products, utilities and flexible financing solutions.
Ondrej Frydrych, Managing Director of Home Credit Group in China. [Photo provided to China Daily]
Home Credit has formed a strong partnership with Chinese smartphone maker Oppo Electronics Corp, based in Dongguan, to strengthen its presence in member countries of the Association of Southeast Asian Nations, particularly in Vietnam and the United States. Philippines, to create new market growth points from the development of the Belt and Road Initiative.
Ondrej Frydrych, managing director of Home Credit Group in China, said the company provides these countries with consumer credit solutions that cover the entire process of lending, consuming, paying and building the credit system. .
Unlike dealerships or local banks, Home Credit is able to offer customers in the region a smartphone secured by a zero interest loan.
According to statistics from Oppo’s overseas mobile sales department, about 40% of Oppo’s mobile phones sold in Vietnam in 2015 were through consumer credit services provided by Home Credit.
Oppo’s sales in the Philippines also jumped to second place in terms of market share from January to August 2016, with more than 30% of sales of certain models coming from consumer credit services provided by Home Credit.
“The collaboration is showing encouraging results, and these two modern trade routes have brought even more opportunities to these markets and offered a platform where we could better integrate each other’s resources,” Frydrych said.
Home Credit recorded extremely rapid growth in new loan volumes in Asian countries in the first half of 2016: 109% in Vietnam, 164% in India, 321% in Indonesia and 466% in the Philippines.
Based on its experience of operating in Southeast Asia, Home Credit has found that many local residents still have a great need for basic necessities.
“The mobile phone will remain a stable growth point in Southeast Asian markets, while products that meet the needs of daily life such as household appliances, electric motorcycles and other durable consumer goods high quality and relatively low prices can have great market potential in the region,” Frydrych said.
The Eastern European company had more than 15 million active customers at the end of June this year, more than two-thirds of them in Asia: 7.3 million in China, 1.3 million in Vietnam and 1 million in India.
“The collaboration between Home Credit and Chinese enterprises well supports the popularization of consumer credit and facilitates the promotion of “Made in China 2025” in global markets, enabling China to serve more overseas consumers while promoting restructuring. and modernization of national industry,” Zhao Xian said. , professor of international trade at the Central University of Finance and Economics in Beijing.