Friday Forum – We bring the hottest questions from the Chinese Social & Digital space to our brightest minds.
周五论坛——让中国社交与数字领域最热门的话题碰撞出思维火花

What risks and opportunities do you see with “Buy Now, Pay Later” features on e-commerce platforms?
你认为电商平台的“现在购买,以后付款”功能存在哪些风险与机会?

Rachel Zheng
Senior Account Manager / We Are Social

中国在线购物如今蓬勃发展,店铺也通过“先买后付”获得了更多的关注和销量,同时吸引了更多年轻的消费者,并且他们快速适应了在线购物带来的各种影响。据分析表明,分期付款制度是一个在疫情前就出现的新潮流,盛行在喜欢使用信用卡消费的Z世代和千禧消费者之间。根据CNN商业,尽管“先买后付”如今更加流行,但消费者的使用心态也变得更加谨慎。因为此类型消费的盈利模式主要是通过店铺首付,消费者支付尾款的方式,但未付清的尾款会影响消费者的信用积分,这一事实在如今的日常影响中非常重要,所以消费者对于财务问题也变得更加的谨慎理性。

Stores are betting on "buy now, pay later" as a way to reach younger customers and keep up with the rapid shift to online shopping in the pandemic. The "buy now, pay later" model was an emerging trend before the pandemic, especially among Millennials and Generation Z that wary of taking on credit card debt.

According to CNN Business, even though buy now, pay later is more widely available now, customers may want to be cautious of using it. These services typically make money from merchant fees and late-fees for consumers. Also, late-fees may impact customers' credit scores that are becoming a crucial factor for the Chinese's daily life.

Howie Jiang
Account Manager / We Are Social

先买后付的消费模式其实是一把双刃剑。对商家来说,这是一个可以控制存货量与成本的方式,商家可以首先拿到预付订单并且进行更多的生产备货。但这样的方式也有着一定的风险,比如长时间的等待时间让消费者可能出现的不良情绪,或许无法达到消费者的最初预期。最后,我并不认为这样的支付方式可以带来更多实惠,甚至更便宜,并且对于如何支配我的金钱我仍然保持理性和保守的态度。

It is truly a double-edged sword. For merchandizers, it is an opportunity to control their stock and save costs by first receiving pre-orders and then make a request for more production supply. However, they also risk failing in living up to consumers' expectations with longer waiting times that may generate complaints. End of the day, I don't think this type of model of pre-ordering is not much cheaper, and I'm very conservative about how I spend my money, anyway.

Monty Lin
Account Executive / We Are Social

“先买后付”对很多人,尤其是年轻人来说会提高他们的负债率,一旦收支不平衡,就会对他们的生活造成很大的影响。同样,收不到钱的商家也会资金周转困难。这就需要平台有选择性、针对性的开放使用人群。
机会:
“先买后付”在金融消费方面构建了多元化的消费场景,通过对用户消费行为的剖析,精准触达用户需求,更大程度上挖掘用户的消费潜力。特别是对于作为消费主力的年轻人,“先买后付”能很好的刺激他们的消费欲望,使他们超前消费。对于商家来说,这一举动能积极促进市场的繁荣。

The emerging trend of “buy now, pay later” is increasing the rate of debts, especially younger people. This imbalance of high expenses with lower incomes will affect the customers' financial situation, and eventually also hurt the merchants who cannot receive payments, thus risking not generate enough cash flow. Therefore, platforms need to be more cautious about whom they offer these types of services.

“Buy now, pay later” certainly builds a more diverse shopping scenario for payments. Through analyzing users’ shopping behavior and precisely touching users’ needs, users’ potentialities in shopping and purchasing are exploited to a larger extent. Especially when younger consumers as the main force in online shopping, this “buy now, pay later” successfully allows excessive consumption. For merchants, this move is making the market even more active and prosperous.

Lexi Qiu
Account Executive / We Are Social

“先买后付”的形式从消费者和品牌的角度来看,会有不同的结果。

从消费者的角度来看,很多年轻消费者无法接受延后满足,缺乏生活规划,缺乏风险意识,导致会做出先选择购买的行为,后思考要承担的付款风险,可能会导致消费者后期承担不了经济压力或者恶性循环提前消费行为。

从品牌的角度来看,我觉得“先买后付”属于麻痹用户式绑定行为,鼓励消费者满足购买欲望,麻痹消费者需要承担付款经济风险的意识。品牌可以从中获得更多利润和提高销量,相对于消费者而言,此形式更有利于品牌。

“Buy now, pay later” seems to have different consequences from a brand and consumer’s perspective. From a consumer point of view, many young consumers cannot assess risks and plan ahead which can lead to a level of consumption that goes beyond their capabilities with high financial pressures and a vicious cycle of excessive consumption. 

From a brand’s point of view, I think this purchasing model is a way to lock-in customers with the idea of fulfilling their needs without explaining the risk of potential financial difficulties. This “buying first pay later” model is profiting brands through boosting sales, which makes it more beneficial to brands instead of consumers.

Cassie Ma
Account Executive / We Are Social

在我看来,“先付后买”的消费模式有利也有弊。首先,对于品牌来说可以是有益的,因为它刺激了销售,消费者会由于低首付款而冲动消费,最终带来了更多销量。其次,对于消费者来说,“先买后付”会刺激更多的冲动消费,甚至带来超越经济能力的超前消费,最终背上越来越沉重的个人债务。

I think there are advantages and disadvantages to the "Buy Now, Pay later" models. First of all, for brands, this operating model helps boost sales. Consumers will make impulse purchases because of low prepayments, which are beneficial for sales. Secondly, for consumers, buying immediately and paying later will stimulate impulsive consumption, leading to excessive consumption by the masses that may lead to heavy personal debt.

Cecilia Yu
Account Executive / We Are Social

线上借贷引导人们去进行一些超越自己经济水平的消费,某种程度上似乎给消费者带来了更多的压力。一方面看,当人们处在疫情影响之下缩减开支,理性消费的大环境下,这样的消费模式似乎可以很好的刺激消费和生产,为市场带来繁荣;但从另一个角度讲,随之而来的社会性结果也有可能是人们滚雪球般陷入更多坏账,最终影响经济发展。

Online loans seem to release some pressure for consumers, persuading people to buy things that are beyond their abilities. On the one hand, this may be a good way to stimulate consumption and production, especially now during the pandemic when people are more concerned about spending. On the other hand, it may have great social consequences later on with people ending up with large debts that eventually could accumulate into larger negative effects on the economy.