The curtain has closed on the extended “618” shopping festival, a promotional period that stretched across nearly 40 days, concluding on June 20th. As consumers increasingly embrace “efficient” spending habits, interest-free installment plans have emerged as a popular payment option. Data from a major payment platform indicates a 19% year-over-year increase in users opting for installment plans during the “618” event.
The trend highlights a strategic shift in consumer behavior, where shoppers are actively seeking ways to optimize their spending. This financial prudence extends beyond simply seeking discounts.
The core narrative of “618” centered on key promotional drivers: direct price reductions, government subsidies, consumer coupons, and, crucially, interest-free installment plans. The appeal of these plans is evident in the significant rise in adoption.
This trend is further fueled by the myriad of installment plan offerings provided by e-commerce platforms and participating merchants. Across popular online marketplaces, a vast selection of products, including mobile phones, computers, appliances, home improvement, and even electric vehicles, and jewelry, were available with 12-month interest-free installment options. The availability of installment plans with longer terms experienced a 21% increase compared to the previous year.
A recent survey on installment payment habits underscores this shift, with a majority of consumers opting for installment plans even when they have the resources to pay upfront. Many shoppers confirm their pre-purchase analysis incorporates a check for interest-free installment availability, reflecting a deliberate strategy to maximize financial efficiency. Social media platforms are replete with “money-saving guide” posts detailing how to combine government subsidies with installment plans, highlighting the appeal of these methods.
Merchants are undoubtedly attuned to this shift.
The “618” sales event saw robust performance in sectors beyond the traditional domains of electronics and home goods, which historically benefited from demand for installment plans. Categories such as automotive parts, stationery and educational supplies, electric vehicles, and collectible toys experienced the most rapid growth in installment plan transactions.
The data indicates that the availability of longer-term, interest-free options translates to elevated sales volumes, with categories such as electric vehicles reaping the rewards. During “618,” many electric vehicle brands offered 12-month, interest-free installment plans. The electric vehicle segment saw a 30% year-over-year increase in sales, with one in five transactions being made through installment plans.
Regionally, areas known for financial savvy topped the list of installment plan adoption. Consumers in Guangdong, Zhejiang, and Jiangsu provinces were most likely to use installment plans during “618.” Shanghai, Shandong, Fujian, Sichuan, Anhui, Hubei, and Beijing followed.
The types of goods purchased through installment plans also differed by region. In Beijing, for example, pet supplies were a popular choice, reflecting the city’s high pet ownership rate. Shanghai consumers favored home cleaning and personal care products. In Guangdong, a major hub for the apparel industry, purchases of men’s clothing were frequently financed through installment plans.
According to analysts, interest-free installment plans represent a “win-win” scenario for both consumers and merchants. They not only align with consumers’ growing emphasis on financial planning, giving them the flexibility to optimize their cash flow, but also reduce barriers to purchase, which spurs sales growth and invigorates the consumer market. The result is a synergistic effect that benefits all participants.
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