pawnshop is a living fossil industry. In ancient times, pawn jewelry was exchanged for money, which was more common in the less developed commodity economy. After the business of modern bank like to do mortgage loans to the garage, unlike the traditional pawn service to the poor, the pawn industry high-end services in the affluent population, because a single amount is relatively large, although the customer is not much, but profitability is still very strong, but in the Internet + tide, the Internet can help pawn radiation to civilian areas, accelerate the speed of transactions, and to help complete the loop line of credit.
according to Amoy pawn CEO Wang Yi introduction, the pawn industry exists in 1500. However, China has been suspended for 50 years due to historical reasons. At the end of last century, there were only more than 7500 remaining pawn shops in China. They were basically independent individuals, and chain operation was rare. At the same time, by the recent years, the real estate market booming development, the current pawn business has and Guarantee Corporation, small loan companies without distinction, the basic property mortgage loans based. In fact, the real sense of pawn line, China does not exist, so it will be blue ocean market.
pawn shops in real sense are better developed abroad. Public information shows that in these fifty years, foreign pawn began to flourish. For example, the United States has more than 20000 big and small pawn shops, with an average of less than 20 thousand people, there is a pawn line. These are the basic pawn chain business, mortgage basically with civilian products, one of the biggest three companies: FirstCash, Cash America, EZPW has been on the NASDAQ or NYSE listing, the market value of more than $1 billion.
Wang Yi believes that in addition to the establishment of Internet connectivity, speed up the connection, another problem is to meet the needs of the people. Public data show that China’s current credit card penetration rate is less than 20%, the United States is 80%. In the United States, there are 20000 pawn shops in order to meet the demand for mortgage loans, China should have more than 10 pawn shops in order to meet the current needs. There must be a big market for pawn in the civil products, but it is very difficult to do bigger and stronger in the old way.
according to Amoy pawn data, the current Amoy Amoy business people rarely have to take the house as collateral, more jewelry, watches, luxury goods, and even antiques and other supplies to do mortgage loans. However, this seems to be back to the past, the reason is the industry has been fading, the beginning of the pawn industry, people are holding jewelry, toys and paintings to the pawnshop to borrow money. But now pawn operators feel that to find a group of appraisers hard to do these things, making money faster than a set of mortgage to cost-effective, so they have dismissed appraisers, direct housing mortgage. But Wang feels it abandoned the pawn essence, and there is no bank competitiveness and there was no difference, and the foreign pawn market, with the help of the Internet will be able to use the new wine wine bottles.