BEIJING, April 11, 2016 /PRNewswire/ -- On March 26, 2016, Shuai Ge Company held a press conference in Beijing to introduce its 'zero consumption at Shuai Ge' business model to the public, and share its experience with experts, partners and media representatives.
The introduction of encouraging consumption through consumer finance, which was incorporated into the Chinese government's work report during the recent 'two sessions', is leading to a new round of innovation in consumer finance. It is understood that the consumption-creating-value model displayed by Shuai Ge is designed to help consumers transform the value of physical objects they have consumed or will consume into economic value, and realize capital gain from the money that has been spent or will be spent through the operation platform of Shuai Ge Company.
'Zero consumption' refers to fully returning consumers' money and 1.5 times infused capital through the Shuai Ge Home Furnishing platform, changing the traditional consumption history of shopping without making profit.
Commenting on the new model Shuai Weibao, Shuai Ge's chairman, said, "Our company's business model allows manufacturers' products to go directly to consumers in a one-stop manner, which guarantees fast reach rate of corporate goods, increases product sales quickly without increasing the cost of sales and reduces inventory rate.
"Meanwhile, it accelerates the speed of innovative businesses and production enterprises to enter the market, improves the competitiveness of innovative enterprises and reduces attrition during circulation. More importantly, Shuai Ge changes the unprofitable traditional consumption for consumers into a profitable one."
Unlike traditional insurance and savings financial planning, with the Shuai Ge model consumers' capital is used flexibly and returned monthly, which does not affect their use of funds. This achieves the stimulation of consumption and creates a virtuous circle of consumption creating value.
Dr. Huang Qi, chief expert of China Enterprise Brand Research Center of Ministry of Industry, when talking about Shuai Ge model, said, "The model represents a sort of subversion and innovation of the traditional one. In the big era of consumer finance, if we want to give full play to the role of finance serving the real economy, we must create a win-win ecological platform for value addition through opening and sharing - realizing all-round opening and sharing of data, channels and human resources across industries by utilizing finance as the link. Through Shuai Ge's innovative platform, consumer finance not only becomes a shop's sales tool, it will also be their marketing tool, and the platform on which industry data are activated, appreciated and liquidized."
Doctoral tutor Wu Jinxi, director of Research Center of Strategic Emerging Industries, College of Social Sciences, Tsinghua University, believes that, in essence, the appearance of Shuai Ge Home Furnishings Ltd exerts far-reaching impact on peoples' clothing, food, shelter and means of travelling.
Over the years, enterprises and product quality across industries vary greatly; consumers are in the dark about the place of origin, development process, product composition, and warehouse logistics of the brands they buy. In addition to helping guard the production processes of its cooperation enterprises, Shuai Ge Home Furnishing Company facilitates the quality control of the products and regulation of competition order of the industry market. More valuably, Shuai Ge uses the business model of Zero consumption at Shuai Ge and pioneered the innovative financial concepts of consumption creating value, putting an end to 'supply and demand dislocation' and 'excess capacity', which restrict new economic development.
In the meantime, it also aids consumers to transform the physical objects they have consumed or will consume into economic value. It can be seen that the Shuai Ge Home Furnishing model is a major innovation of the traditional business model.
Shuai Ge's business model is expanding rapidly
Founded in 2011 as one of the first batch of companies that actively practice the concept of consumer finance, the accumulative total turnover of Jinan Shuai Ge Home Furnishing Company reached one billion yuan by 2015.
At this press conference, Shuai Ge Company signed strategic cooperation agreements with RuiZhi (Shanghai) International Trade Company, Hong Kong Royal Chinchilla Fur Fashion Ltd., De Pin Tang Home Ceramic Company, Jiangsu Amron Science and Technology Development Ltd., Hong Kong HC Asset Management Group Beijing sales branch, Human Body 4S shops (China) Headquarters and Hunan Jiangyong Property E–commerce Ltd., beginning in-depth cooperation about applying the Shuai Ge Home Furnishing business model into home furnishing, food, clothing, agricultural products, health care and so on.
It has crossed industries to serve people's clothing, food, shelter and means of traveling in an all-round way, with one representative of a partner company saying Shuai Ge Home Furnishing will not only help it to reach a substantial increase in product sales and lower channel management cost, it will also reduce the cost of marketing and product distribution.
About future development, Shuai Weibao said, "In 2016, Shuai Ge will view mega-cities, provincial capital cities and open cities as a market development and operation priority. It is planned that, by the end of 2018, there will be more than 60 Shuai Ge branches nationwide, and that its turnover will reach 50 billion yuan. By the end 2019, 100 branch offices will be established and turnover will reach 100 billion yuan. During this period, integrity will be our core principal and push our development and prosperity."
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SOURCE Shuai Ge Company