The Marketing Strategy Research On Domestic Factoring Of China Merchants Bank X Branch

The development of economy and trade and the increasingly fierce market competition give rise to changes in the status of the buyer and the seller in the business transaction, and the buyer becomes dominant. Such changes bring greater risk and financial pressure to Chinese enterprises, especially the disadvantaged SME suppliers in business trade. These enterprises in the face of the dual pressure of internal funds shortage and external credit risk have great demands for the domestic factoring business. But due to the interest rate liberalization, the reduced requirements for financial institutions and the impact of Internet banking, the business environment and competitive environment of China’s commercial banks are constantly challenging the traditional credit business. As a young and creative commercial bank in Ningxia, China Merchants Bank X Branch has timely transformed its business idea and shifted its marketing focus from traditional credit business to emerging business.Factoring is a new kind of financing business, in which banks act as factors and provide enterprises with a series of comprehensive financial services including financing, accounts receivable management and collection, bad debt guarantee, credit investigation. As the only branch offering factoring business in Yinchuan, China Merchants Bank X Branch is advantaged in marketing and process management of factoring business. This paper analyzed the characteristics, process, market competition and market demand of domestic factoring business and reached a conclusion that X Branch’s factoring business marketing had significant benefits for SMEs, buyers and itself, therefore it is the development priority of X Branch’s future credit business.After analyzing the SWOT matrix and the five-force model of X Branch’s domestic factoring business, this paper believed that the obstacles for China Merchants Bank X Branch to develop factoring business were wrong positioning of target customers, improvable factoring operation and regulatory process, inadequate training of relevant personnel, null incentives and insufficient marketing efforts for factoring business.To solve these problems, this paper studied X Branch’s domestic factoring marketing strategy, combined with the SWOT matrix and the five-force model of its factoring business, and made proposals for X Branch to develop factoring business from five aspects, i.e. customer base, product, operation and regulatory process, personnel and incentive mechanism.