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Home Credit says new 0% financing option helps bring in new gadget buyers

By Ashley Lucas - 6 Sep 2016

Home Credit says new 0% financing option helps bring in new gadget buyers

 

Leveraging on the ever-growing appetite of Filipinos for the latest gadgets, Prague-based consumer finance company Home Credit shared how its financing services have helped fast-growing players gain significant revenues.

With Home Credit's 0% installment deal, more consumers get to buy higher-end models, allowing emerging brands to gain leverage in the market place.

“It is definitely an exciting time not just for smartphone makers, but smartphone users, as even the flagship phone models are more accessible than ever,” remarked Home Credit Philippines Head of Sales Adam Bernasek. “Consumer financing has played a key role in bridging this gap.”

Considering Home Credit's three-month promotional tie-up with emerging mobile tech giant OPPO, which offered the F1 "selfie expert" smartphones at low monthly payments with 0 percent interest, the company's 0 percent financing option did prove to be an important factor in sustaining growth.

The promo is said to have generated nearly PhP 280 million in loans for the OPPO F1 model alone, with it accounting for five out of 10 products purchased through Home Credit in all establishments offering the promotion.

“Promos such as these, fueled by combined sales and marketing efforts of both parties, have really shown to be a win-win arrangement,” said Garrick Hung, Operations Manager at OPPO Philippines, adding that out of all OPPO F1 units sold during the promo period, 30 percent were due to Home Credit financing. “These innovative promos have allowed us to add on to our already growing market share.”

OPPO now finds itself in a winning streak, as it rapidly gains market share here in the Philippines and the rest of the region. A Gartner report showed that OPPO enjoyed a sales growth of 145 percent in the first quarter of 2016, giving it the best performance of the period ahead of other leading brands. OPPO has since jumped up in the overall global rankings for smartphone brands.

With new financing options in place to allow more customers to get their hands on these higher-end models, the prospects of the local smartphone industry are more positive than ever.

“As more and more consumers make the move from the entry level to mid- and to high-range, the demand for affordable payments will certainly rise,” Bernasek noted. “Home Credit and OPPO are more than happy to meet this demand, as we move forward in our partnership.”

OPPO’s latest addition to the F1 Series, the F1S, which was launched in the second week of August this year, is also available at Home Credit's 0 percent interest installments.

Source: Home Credit