Local brokerage FounderSecurities just launched its online flagship store on Tmall, Alibaba’s B2C subsidiary. This is the first time a security company has ever entered a B2C platform. The news soon aroused the attention of its peers, accordingly many security brokerages said they also had the same plan now.
In this online store FounderSecurities offers various services such as personal investment advisory, trading tools or news consulting, of which the prices vary from twenty something to tens thousand RMB. Services like opening account or margin trading are not available yet due to the current regulations.
Yuan Hai, the Retail Business GM of the company revealed in an interview that their main businesses on Tmall would focus on news&search products, trading tools and advising services first and then on some financial products. In July 2012, FounderSecurities started selling the same products on its own online trading platform, and has brought in over RMB 5million within half a year.
Two months ago, China Securities Depository and Clearing Corporation Limited (CSDCC) officially seeked public opinions on the off-site opening account service. If this service is to be effective, security traders can open accounts and sell financial products online without regional limits. VP of the FounderSecurities He Yagang said that they stepped in B2C earlier just to be more prepared with the new regulations.
Actually more and more players in the finance sector are trying to reinvent their businesses on the B2C area. Some domestic banks as BOC and BEC have started offering gold bars and fixed deposits to online shoppers. Insurance companies like China Pacific Insurance, and Kuo Hua Life Insurance have already enjoyed pleasant sales number on Taobao. Accordingly every day more than 5 million insurances are sold over Taobao. Last December, Kuo Hua Life even claimed to have over RMB 101million turnover within only three days on Taobao’s group-buying channel. In addition, some fund companies are also on their way to this field.