Affordable Benefits Boost Consumption: Hubei Mall Actively "Subsidizes Interest" to Stimulate Market

Shanghai Securities News, China Securities Network (Reporters Ding Peng and Tan Mi) — Recently, the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration jointly issued the "Implementation Plan for Fiscal Interest Subsidy Policy on Personal Consumption Loans." Personal consumption loans (excluding credit card services) that meet relevant regulations can now enjoy interest subsidy policies.

How effective is interest subsidy in boosting consumption? At the end of March this year, Wuhan-based Wushang Group, in collaboration with the Hubei Branch of the Industrial and Commercial Bank of China (ICBC), launched a "0-Interest Easy Purchase" campaign in its malls. Customers who spend over 2,025 yuan at Wushang Group’s shopping malls or supermarkets can enjoy interest-free installment payments for up to 12 months, with the interest subsidized by the mall.

"‘0-Interest Easy Purchase’ allows consumers to enjoy tangible benefits," a Wushang Group representative told reporters on August 14. Currently, the annualized interest rate for 12-month bank installments ranges from 3% to 9%. This means that if a consumer purchases a 50,000-yuan product at Wushang Group, they can enjoy an interest-free discount of at least 1,500 yuan.

At the DJI | Hasselblad Concept Store on the third floor of Wushang MALL, a customer selected their desired product and learned about the "0-Interest Easy Purchase" campaign through in-store promotional posters. They completed the payment with a 12-month interest-free installment and also enjoyed an instant 300-yuan discount from ICBC. At the CHJ Jewelry store on the first floor of Wushang MALL·World Trade Plaza, another customer purchased nearly 10,000 yuan worth of gold jewelry and opted for "0-Interest Easy Purchase" upon the staff’s recommendation, simultaneously enjoying a 300-yuan discount from the Agricultural Bank of China (ABC).

It is reported that Wushang Group’s "0-Interest Easy Purchase" covers a wide range of categories, breaking the traditional limitation of installment plans to high-value purchases. The benefits extend to international luxury brands, gold and jewelry, cosmetics, electronics, daily necessities, and more. Whether buying a fashionable coat, a set of exquisite cosmetics, or daily groceries at the supermarket, consumers can enjoy "0-Interest Easy Purchase."

The Wushang Group representative noted that the "0-Interest Easy Purchase" model has significantly boosted consumption, with customers’ willingness to use installment payments increasing month by month. According to statistics, by the end of July, the proportion of customers voluntarily participating in the campaign rose from 28% initially to 76%. Both ICBC and ABC offered varying levels of spend-and-save subsidies, with 80% of installment users enjoying these discounts. Among the popular items, domestic brands like DJI and Huawei were particularly favored by consumers.

The representative stated that this model not only provides consumers with a new shopping experience and savings but also offers fresh insights and references for the retail industry’s development. In the future, Wushang Group will continue to deepen cooperation with financial institutions and hopes the innovative "0-Interest Easy Purchase" model can be widely promoted.