Uxin Group: Customer centric philosophy drives online used car trading platform
Omni-channel marketing cultivates young generations
Chief Marketing Officer
Founded in 2011, Uxin Group has rapidly grown to become a leading used car platform in China. Chief Marketing Officer Cindy Wang joined Uxin Group from Uber, where she headed marketing in China. She has worked worldwide for several consulting companies, and was educated in China and the US, where she earned her master’s degree from Yale University.
COMPANY AND MARKET
Please describe what it means to be an online used car trading platform with wholesale and retail businesses?
Uxin offers the business-to-business (B2B) used car trading platform, Uxin Auction, and the business-to-customer (B2C) used car trading platform, Uxin Used Car, and other services. By gathering a massive number of buyers and sellers, Uxin Auction has built a more efficient bilateral market with its professional inspection system and delivery logistics system. In B2C, Uxin Used Car transformed the way people buy cars by offering a multitude of services, such as: used car listing, standardized inspection services, an intelligent pricing system, and comprehensive after-sales service. Uxin Used Car provides an excellent user experience, as well as a strong relationship with used car dealers.
How large is the market for used cars in China? How many used cars are sold annually and at what rate is the market growing?
According to China Automobile Dealers Association, China’s used car market has grown at an annual rate of 15-to-20 percent, since 2015. Over 12.4 million used cars were traded in 2017, up by 19.3 percent year-on-year. It is predicted that Chinese used car sales will catch up with new car sales by 2020. For Uxin, achieving sales and other Key Performance Indicators (KPIs) are importance, of course, but we believe that they are an outcome of our leadership in educating and serving customers and expanding the market.
How do you expect Uxin’s business to change over the next five years? What major opportunities do you see?
With the growth of per capita disposable income, China’s third- and fourth-tier cities, as well as rural areas, are becoming increasingly important used cars market. We plan to build more than 3,000 service centers by 2020, covering all county level cities and county towns with populations over 100,000. We are in process of improving our logistics system. In 2017, Uxin launched 10% upfront financing product for its used car business, making it more affordable for young people to own their cars.
What most differentiates Uxin from its competition? And what are key lessons that other brands can learn from Uxin’s success?
Uxin provides one-stop service to meet the needs of all parties during a trade. This laid the foundation for us to become China’s largest online used car trading platform. Uxin owes its success to the trust of consumers and car dealers. So far, we have served over 100,000 dealers and built strong loyalty with them. In order to offer the best user experience, we guarantee honest car reports, pricing, and sourcing, and fully protects consumers’ rights and interests. In addition, we focus on building the brand in innovative ways with customer-centric initiatives.
Does the name Uxin have special significance?
In Chinese, Uxin means high-quality and integrity. Uxin is devoted in building an open, fair, just, and transparent used car trading platform with the focus, dedication, integrity, and innovative spirit.
CONSUMERS AND THE CHINESE DREAM
Who are Uxin’s typical customers, both business-to-consumer and business-to-business?
When it began, in 2011, Uxin focused on the trading between car dealers. In 2015, Uxin announced its entry into retail sector. In 2018, consumers can search, and purchase used cars anywhere at any time by browsing Uxin’s used car website and mobile app.
Based on your knowledge of Uxin customers, what insights can you share about how Chinese consumers are changing? What are their key concerns when buying a used car?
According to our transaction data, used car consumers are getting younger and younger. The post-90s generation is on the rise. Having grown up with internet, they are willing to purchase cars online and are open to pay by installment. These consumers seek a more cost-efficient solution for used car purchasing with fixed budget. Top-tier car brands and best-seller car models are also popular in the used car market. Based on the many studies we’ve conducted to understand the key concerns of Chinese car buyers, we have prioritized the need to be genuine and transparent, core principles of the brand.
In many categories, growth in China is about penetration, especially into lower tier cities. Is that the case with the used car category? And how does Uxin increase penetration in lower tier markets?
Car registration in China’s third and fourth-tier cities as well as rural areas is lower than that in first- and second-tier cities. However, with steady growth of per capita disposable income, the car ownership potential in lower tier areas is increase immensely. By offering a multitude of full services, including car inspection, financial services, logistics and warehousing, transfer procedure, and after-sales maintenance, Uxin helps the consumers overcome geographical restrictions, and enjoy the one-stop car trading experience, only a click away.
The Chinese Dream is partly about helping people live better lives. How does Uxin help fulfill this dream?
Cars expand the range of people’s life and work, and shorten the distance to high-quality opportunities in education, medical services, employment, and tourism, for example. Our vision is to help 300 million Chinese families own their dream car easily, which is highly consistent with the core of Chinese Dream. As car purchasing matures in China, people are more open to used cars and the cost benefits they offer. The Uxin platform offers a full range of prices points to satisfy most purchase desires.
Brands across categories are also working hard to integrate their products, data, and logistics online and offline, something that Uxin apparently does well. What advice do you have for brands attempting to achieve seamless integration?
With the arrival of the New Retail era, online and offline integration is becoming a must, and the application of big data is one of the key steps. By integrating transactional and consumer behavioral data, along with product and services, we enhance the collaboration and allocation of online and offline information and resources. These steps improve industry efficiency and benefit consumers by making it easier to buy a car—in one day.
How does Uxin use big data and artificial intelligence to serve its customers better and gain a competitive advantage?
Uxin Used Car is the first to introduce big data and artificial intelligence technology into the industry. Based on the massive authentic transaction data on the platform, Uxin develops an artificial intelligence pricing system. During the transaction, consumers online data will be synchronized to retail stores, and sales staff can use the data for accurate recommendation. By leveraging big data and artificial intelligence, Uxinauctions can be done within seconds. With simple and convenient trading procedures, Uxin reduces consumer’s cost of decision-making and makes it more efficient.
What is the key message that Uxin attempts to communicate to consumers? And what are the key brand building and promotion elements of Uxin campaigns?
By building a trustworthy brand image we achieve our promise of connecting consumers with their dream car. To achieve this promise, Uxin implements omni-channel marketing campaigns, including variety show sponsorship and film product placement, to integrate our used car trading platform into the consumers’ new lifestyle.
What media mix do you use to communicate the Uxin brand? And how has that changed over time?
In this low-frequency marketplace, engagement strategy is necessary, and we take advantage of an inherent human desire for staying up-to-date. We understand our customer's journey and adapt our media mix accordingly. We are present at multiple digital touch points to inspire consumers and ignite their interest and desire. For example, in 2017 we adopted brand content for the well-known, anti-graft TV drama In the Name of People.
Our brand communication also pays attention to creative integration of content and media, such as with the film product placement in Transformers 5: The Last Knight.