ARIZA: There is a Great Market to Grow InBy Alejandro Enríquez | Fri, 07/03/2020 - 12:31
Q: Considering that the leasing industry in Mexico is relatively young, what market niches has Ariza identified in the Mexican market?
A: ARIZA does not have a specific market niche as our portfolio contains clients from all sectors. A major challenge we face is leasing’s lack of market penetration and the lack knowledge regarding the different leasing products and the difference between leasing and buying. Given that more than 75 percent of the market remains unattended, the opportunity is there.
Q: How does the company differentiate from current or future competitors such as TIP, ALD Automotive, Casanova Rent and Element Fleet?
A: We have a transparent business model. Our clients have clarity in each component of the leasing contract, so they can rest assured that they will not find hidden charges or fees related to tricky clauses. Our main differentiators are visibility, flexibility, transparency and control.
Q: What strategic partnerships is Ariza creating with dealerships and potential customers to increase its market share?
A: We are strengthening our relationship with major car dealership groups. They have always been great partners and we are trying to formalize their shops through KPIs while the performance of service-level agreements is monitored and managed on an on-going basis to ensure top-of-the-game service. We launched three new leasing products in 2019 to adequate better to potential client needs and we will continue developing products to make their operations easier and more efficient, with greater flexibility and transparency.
Q: How has Ariza invested in technology and Big Data to improve its operations?
A: Last year, we invested heavily in improving our management information systems and increasing operational efficiency, focusing on technology as a main tool so customers could make maintenance service appointments digitally. This has made us more efficient and improved customer satisfaction from 4 to 5 percent. We also offer our Ariza Vos platform, which allows us to simplify the communication with our customer during the purchasing process.
Q: How has the electrification trend influenced Ariza's operations and what plan does the company have to incorporate these vehicles into its fleet?
A: Rising gas prices and stricter emission controls resulted in a boom in hybrid vehicle use. Before that, only two of our clients were trying to incorporate hybrids into their fleets. People who have some experience with hybrids are seeing their investments generating yields. For example, when talking about gasoline prices, users see savings reflected directly in their accounts. As for full-electric vehicles, the industry remains doubtful about charging points, batteries and infrastructure. These cars and autonomous vehicles are coming but without government incentives and the adequate infrastructure, it will take a while for them to really penetrate the market.
Q: Given the state of the industry, what are your growth projections for 2020?
A: The leasing market has been growing at a double-digit rate. This year we expect our growth to remain steady.
Ariza is a fleet management company focused on optimizing processes and solving complex corporate mobility challenges. It was founded in 1995 as a joint venture between ARI and Corporación Zapata