Yixin Group launches major advertising campaign
19 Sep 2017
Yixin Group (otherwise known as Daikuan.com, Yixin Chedai or Yixin Capital Ltd.), China’s leading provider of used- and new-auto financing and auto transactions, launched a new advertising campaign for its customer-end platform Taoche.com (淘车). The campaign is being fronted by celebrity actor and singer Deng Chao 邓超.
The campaign covers both traditional television advertisements (on state broadcaster CCTV, as well as Hunan Satellite), and video ads on video streaming websites, including Tencent Video (腾讯视频).
Yixin Group’s first, major advertising push has been expected for some time now, with the company flush with cash after a series of funding rounds in addition to its issuance of various debt instruments, most asset-backed securities, which it issues now with the assistance of recent backer Zhongtai Securities (see here).
Total funding raised via this method now adds up to 9.3 billion RMB ($1.4 billion U.S.), following the most recent issuance last week (which we reported on here).
Advertising has proven to be a mixed blessing for the biggest players in China’s used-auto sector. Guazi ershouche, Uxin and Renrenche each spent at will on large-scale and multi-channel campaigns that have led to whispers that they are close to their margins. Little has come of this, however, with Uxin’s most recent foray anchored by movie star Wang Baoqiang, leading to a downturn in users.
The ads are putting out that Taoche.com already boasts an inventory of over 30,000 used autos and 50 million users.
According to Zhang Xu’an, CEO of Yixin Group, Taoche is being envisaged as a gateway for consumers to enter the company’s wider ecosystem of financing, insurance and auto maintenance services.
Yixin Group was founded by Bitauto (NYSE: BITA), with major investments early on coming from Tencent, Baidu and JD.com.
Bitauto recently announced that all of its vehicle transaction business will be moved over to the Yixin Group umbrella, with Taoche.com as the principal transaction outlet. Bitauto’s revenue from transactions was up 161 percent year-on-year in Q1, and 181 percent year-on-year in Q2 of FY2017.