The Status And Development Of J Consumer Finance Company

China Banking Regulatory Commission (CBRC) promulgated the Measures for Administration of Pilot Consumer Finance Companies in August2009, and the first group of consumer finance companies in China established in March2010. By February of2013, they have existed approximately three years. During these periods, they faced some bottleneck in development. This paper discusses the origin of consumer financial industry and the advanced experiences of developed countries and regions. Then it states the survival and development status of domestic the first pilot group companies in China, and investigates the developing situation and countermeasures of J Consumer Finance Company using the strategic management theory. Specifically, it applies the PEST model of strategic management to analyze the external environment and studies its competitive environment with five forces model. Additionally, it gives some overall suggestions about the next step in improvement strategies for J Consumer Finance Companies together with specific measures for implementation.Since consumer finance is a new topic in China, most of the researches focus on questions from the perspective of macroscopic policies and industry development, few of them study the survival and practical development of consumer finance companies. This paper tries to put forward and analyze problems from the perspective of consumer finance companies and the micro-level of enterprises with the help of Finance, Management theory, so as to exploring the specific development countermeasures of the consumer finance companies. Generally speaking, taking the competitive environment into consideration, China’s consumer finance industry will not be perfectly competitive in the short term. Although the consumer finance market still needs to be cultivated and standardized, there are opportunities in the industry. Subsequently, this paper suggests that J Consumer Finance Company need to take combined strategies and centralized competitive strategies in the future. Moreover, it can expand consumption loans for general purposes with high profits embedded and promote the development of installment of durable consumer goods loans which may accumulate the number of customers and lay a foundation for the company’s long term future, and form core competitiveness together with establishing scientific risk control system and low cost automatic operation mode. In the implementation of the strategy, it needs to pay close attention to the macro environment and the trend of industry competition then adjusting strategies. It is believed that with the rapid development of consumer finance business in the future, J Consumer Finance Company will have a bright prospect.