Banking turns to online malls

A Lastest News about Mail Order, Electronic Commerce in China

Last updated: 29 Jun 2011

Major Chinese mainland commercial banks are trying to increase credit card usage by running online shopping malls, under familiar names like e-shop, Egou and Tesco.

The popular purchases range from mobile phones and other digital products to household electrical appliances, jewellery, cosmetics, garments, shoes and headgear. The list goes on.

Most banks have adjusted their caps for single online transactions online or daily accumulated debits downward, so this move has made it difficult for big ticket items to be purchased online.

However, this has also created opportunities for hire purchase arrangements in banks' online stores. Payment by instalment suits the needs of middle income shoppers going after luxury goods, stimulating spending.

For instance, many people find it expensive to land a branded handbag with a price tag of Rmb10,000, but they're more willing to buy if payment is made by monthly instalments of, say, between Rmb700 and Rmb800.

Many consumers hold high hopes for these bank-related online stores. Many reckon that, compared with normal online stores, products and services provided by banks offer better assurances. Once any problems occur, they can resolve them with the banks, they believe.

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Posted: 28 June 2011, last updated 29 June 2011

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