“Cdiscount Location” to Match Evolving Consumer Habits

Cdiscount had been testing a new service over the past few weeks and is now announcing the availability of “Cdiscount Location”: a long-term leasing solution applied to roughly 1,000 products, especially high-tech items. This e-merchant looking into means to stand out through adding more customer-facing service.

Cdiscount, e-commerce subsidiary of Groupe Casino, is making room for today’s customers’ e-purchasing habits via expanding their range of offers, mostly regarding home appliances, toys and leisure. They also try to feature low prices. These adjustments translate into their introduction of a new rental offer.

Their partnership with Banque Casino and CM-CIC Bail, allows them to propose long-term leasing contracts: 24 months (for smartphones) or 48 months (home appliances and TVs), including comprehensive insurance managed by SPB. Upon purchasing an item, the customer pays his first rental instalment using his payment card. Then, he fills out a form for credit financing online and scans the required supporting documents (banking information –RIB– and proof of ID). The contract is signed digitally, via SMS. The ordered item is shipped to his home address upon validation of his application, i.e.: within 48 hours.

This e-merchant tries to win a competitive edge through adding services, such as: Lydia-based payments, face recognition for authentication purposes, unlimited “free” shipping via “Cdiscount à volonté” (€29/year), “Coup de pouce” for instantly approved micro-loans (within 24 hours), and through betting on other projects, as is the case with Utwin, as regards to borrowers’ insurance.

Comments – Long-term rental gaining further grounds

Over time, long-term leasing tends to grow more popular and be considered by more industry sectors. Among players already betting on such options to attract customers: Caisse d’Epargne –via Natixis Car Lease– for car sales/purchases; or, more recently, La Maison de la Literie and Crédit Agricole Consumer Finance on proposing mattresses with 10 years lease-purchase option. This trend is gaining momentum: rental services for goods amounts to roughly 4.2 billion euros in France (+25% in 2017) and car leasing (including second-hand vehicles), heavily impact the market for consumer credit. According to the ASF, lease-purchase options for goods –besides cars and boats– have increased by 19% between 2016 and 2017. These rents build on transparency and budget management, since the monthly instalment of the lease is specified when the contract is signed: a convincing argument for younger customers. Cdiscount, for its part, chooses this option to improve customer loyalty through proposing associated services (insurance, assistance, maintenance) and stand out as they have to face Web giants like Amazon.