Technology Innovation Boosts the Development of Chinese Panda Gold and Silver Coins
Introduction of the Gold Coin Trading System
Over recent years, with the improvement of people’s living standard, gold trade has gradually becomes an important part in the development of national economy. In China’s gold market, Chinese Panda Gold Coin is considered as an unique product with artistic connotation, cultural trait and investment nature. It has been well recognized both domestically and abroad for its diversified varieties and specifications, long history of issuance and guarantee of the state credit. Compared with other commemorative coins, Panda Gold Coin is characterized by a low premium rate and a high degree of value maintenance, and it is the only legal tender that can be repurchased through official channels.
However, what is unknown to ordinary consumers is that Panda Gold Coin was once a kind of niche product with an annual sales of 463 ounces since its first issuance in 1982. Now it has grown into one of the most popular physical gold products, whose sales reached a half million ounces in 2012. The huge increase in sales not only reflects the infinite market potential of the product itself, but also reveals the great power of science and technology behind the scenes. One indispensable momentum is the IT application of the Panda Gold Coin trading, namely the R&D of the Gold Coin Trading System.
Born in the reform and development of the gold coin market
The R&D of Gold Coin Trading System may date back to more than a decade ago when the original fax quotation and manual operation could not meet the growing demands for Panda Gold Coins in the domestic market. In order to accelerate the development of Panda Gold and Silver Coins, Shanghai Gold Coin Investment Company got started on the R&D and implementation of the Gold Coin Trading System under the guidance of China Gold Coin Incorporation. Launched in 2004, the prototype of the system was the world’s only trading system dealing with precious metal products at that time, which was a milestone in gold coin industry.
The launch of the Gold Coin Trading System has solved various problems, such as the difficulty in information management due to the increase of clients and issues result from manual operations including complex process, poor security, heavy workload and high error rate. The processing capacity has been gradually enhanced to 65 transactions per minute from the original 20 minutes per transaction when there was no system. With the help of the Gold Coin Trading System, Shanghai Gold Coin Investment Company set an industry record of 4-ton sales of Lunar New Year gold bars within 3 days.
In addition, the number of clients has also been on the rise. The company had only 40 clients in the beginning while the number of clients has been increasing year by year since the system was launched, reaching 653 up till now. Besides the 96 franchised dealers of China Gold Coin Incorporation, nearly 400 branches of Bank of China, Bank of Communications, China Merchants Bank, China Industrial Bank, China Construction Bank, China Everbright Bank, Beijing Rural Commercial Bank and other local banks can order products in the system. By the means of instant notices, announcements and point-to-point SMS, the system enables more convenient communication and higher information transparency, thus improving the comprehensive services and perception of the users.
Since the launch of the Gold Coin Trading System in 2004, Shanghai Gold Coin Investment Company has achieved a total sales of 35.91 billion RMB.
Center on the customer experience and highlight five innovations
Under the era of Internet Economy, the new Gold Coin Trading System was launched and opened to all clients in November 2012, which marked a completely new phase for the sales of Chinese Panda Gold Coins. The diversity and extendability of the new Gold Coin Trading System provide not only a good “internet+” platform for various precious metal products but also a reliable basic framework for the innovation in the gold coin industry so that creating favorable conditions for achieving the interconnectivity within the entire industry. The new Gold Coin Trading System will bring clients with brand new experience. What are the five innovations indeed?
The first trading system to realize real-time quoting and real-time hedging. Gold Coin Trading System takes the lead in adopting real-time quoting which allows price adjustments according to price fluctuations of gold and silver. Real-time quoting keeps Chinese Panda Coin close to market price and has been followed by many other counterparties since it was implemented. In addition, the trading system is able to conduct real-time hedging operations based on transaction data in order to avoid the risk brought by the fluctuations of gold price.
The first trading system of precious metal commemorative coins to be connected with clients’ operation system. Effectively integrating clients’ demands with stock information through standardized interface services to enable quick feedbacks and excellent experiences for clients in system interaction. At present, Gold Coin Trading System has been connected with the systems of China Merchants Bank, China Industrial Bank, Beijing Rural Commercial Bank and Beijing Gold Coin News Company. The interface’s maximum number of concurrent connections is 200, and the system’s maximum processing capacity can reach 50 transactions per second.
The first trading system to provide professional logistics tracking services on precious metal products in China. Owing to the organic combination of advanced information network technology with modern logistics technology, the delivery capacity has been increased by 10 times and the costs of logistics and management have reduced tremendously. Establishing the real-time logistics tracking system for Chinese Panda Coins makes the real-time logistics tracking of each order a reality. The logistics tracking service greatly improves customer experience since it saves the 30-minute communication time on telephone.
The first trading system to be connected with the gold coin detector in the repurchasing of Panda Gold Coins. The self-developed Panda Gold Coin detector is connected with the Gold Coin Trading System. While inspecting the repurchased Panda Gold Coins, the detector sends the real-time inspection data to the trading system. In this way, Gold Coin Trading System improves the repurchasing process and further realize the investment nature of Chinese Panda Gold Coin.
The first trading system to enable the mixed sales pattern which is unique in domestic market. As the system has been gradually improved, it is able to manage the whole process of trading and settlement online. The system significantly shortens the time spent by both the clients and the employees on confirming the price, stock and other basic information. The employees therefore could concentrate more on customer experience, business innovation and sales channel development.
Clients can design or choose different trading patterns even a mixed trading pattern according to their own needs. Accurate data aggregation and classification also provide important basis for sales and decision-making.
Achieve remarkable economic benefits by promoting the brand value of Panda Gold Coin
By 2015, 11 years has passed since the launch of the Gold Coin Trading System. As a mature online sales system, it realizes reliability, safety, instantaneity and operability at the same time, and integrates sales, finance, logistics and materials effectively. The system successfully coordinates sales with raw material purchasing and production, resulting in an integrated system for information transfer and processing. The “delay” between production and sales, and also between supply and demand turns into “real time”, which has greatly improves the sales forecast and inventory management, while reduces the inventory cost of the whole supply chain. The goal of intelligent management, lower cost and higher efficiency has already been achieved. In one word, the Gold Coin Trading System promotes the brand value of the Panda Gold Coin as well as the company’s operation capacity in all aspects.
Since the new system was launched in 2012, it has completed more than 30 thousand orders and a total sales of 17.85 billion RMB, which comes from the sales of 1.376 million-ounce Panda Gold Coins, 8.723 million- ounce Panda Silver Coins and 35.6-ton other derivatives. These statistics were unimaginable in the traditional trading pattern. Therefore, it is obvious that the power of science and technology is bringing significant social and economic benefits for the development of precious metal commemorative coins, and also advancing the information construction of the issuance of precious metal commemorative coins in China. We firmly believe that with the help of technology innovation, Chinese Panda Gold and Silver coins will enjoy an ever brighter future.
Shanghai Gold Coin Investment Co., Ltd was established in 2002, which is the subsidiary set by China Gold Coin Incorporation in Shanghai. Shanghai Gold Coin Investment Company is one of the first comprehensive members of Shanghai Gold Exchange with registered capital of RMB 150 million. The company’s business includes the sales of Chinese Panda Bullion Coins and other precious metal derivatives.
In 2012, China Gold Coin Incorporation approved to establish the Marketing Center of Chinese Panda Bullion Coins based on the existing Shanghai Gold Coin Investment Co., Ltd. As an organic component of China Gold Coin Incorporation, the Marketing Center of Chinese Panda Bullion Coins is responsible for specific operations on the marketing of Chinese Panda gold and silver bullion coins under the leadership and authorization of China Gold Coin Incorporation, meanwhile fulfills certain management functions.