Study On The Development Strategy Of Wealth Management Business Of China Merchants Securities

After entering the 21st century,China's economy has maintained a trend of robust growth,and the level of per capital income continues to rise,and residents' needs for wealth management are also growing.Affected by the continued downturn of the A-share market,the transaction commissions continued to decline,and the profitability of brokerage business is also slipping.At around 2018,many securities companies have proposed to transform into the wealth management business.China Merchants Securities also attaches great importance to the development of the wealth management business and continues to promote its progress.However,the wealth management business of China Merchants Securities is still in its infancy,and it is urgent to find a development model suitable for China Merchants Securities' own wealth management business.This study investigated the development strategy for the wealth management business of China Merchants Securities through literature review and case analysis.The results of the study show that China Merchants Securities has the following problems in its wealth management business:firstly,the customer base is weak and the momentum for channel conversion is insufficient;secondly,high product homogeneity and lack of innovation;thirdly,the use of traditional marketing model leads to high labor costs;fourthly,the tight regulatory policies make it difficult to launch marketing activities.By referring to the current economic situation and regulatory policies in China,this study put forward a suggestion for optimizing the development strategy for wealth management business of China Merchants Securities,which is designated to solve the problems of small customer scale of the company and lack of competitiveness of the product mainly from the product and channel.Firstly,transform the customers from other departments to customers for wealth management via cross-departmental collaboration,and increase the source of customers for wealth management.Secondly,increase investment for product R&D,enrich product categories,create distinctive product series,and provide continuous professional services to the customers for wealth management,to enhance customer experience and shape product competitive advantage.The conclusions of this study not only provide aid in exploring the path for the future development of wealth management business in the securities industry,and promote the rapid development of wealth management market,but also propose new ideas for the development of China's wealth management market from product construction to product marketing,which is of great significance in increasing international competitiveness of China's wealth management business.