Innovation

From the onset of our initial research and following our interview with Mr. Liang Long CEO of Carloha, it became evident that the company has progressed into groundbreaking territory within the pre-owned vehicle industry. Since its establishment in New York in 2014, Carloha has become a used car e-commerce industry leader. With an intentional purpose of stepping outside of the normal confines of used car dealing, the company set its sights on providing a one of a kind consumer friendly atmosphere. The objective is for consumers to feel secure in purchasing while utilizing companies Online to Offline platform. This platform allows consumers the ability to buy, sell and trade amongst each other, or use the company’s vehicle services to purchase from Carloha directly. In addition to car buying services, Carloha also offers maintenance and repair services at your request.

Innovation and sustainability are at the forefront of Carloha’s vision for the future. In 2019, the company expanded its reach to Africa, in the effort to integrate global resources. While the company is located in the United States, China having a globally elite factory system, is utilized as the company’s manufacturing and technological base, while Africa has become the companies new target market. These globally integrated resources, as well as the Online capabilities, allow for amenities not offered with most used car businesses. The company offers economically feasible priced cars, as well as high end luxury vehicles for affordable prices. Consumers can purchase with assurance that each vehicle is certified after undergoing a thorough inspection to ensure that everything is operating to standard. Carloha also offers a vehicle report at no additional cost, free shipping within the continental U.S., as well as a suggested purchasing price for each vehicle.

Inspiration

Following a successful ten-year career working for automobile companies including Toyota, Mr. Long had a vision to supply customers with a used car buying experience that most people truly desire. Since 2017, his vision has been to start conducting business globally. After extensive research, Mr. Long and his consultants came to the conclusion that the best opportunity for growth and sustainability was to focus their attention on the rapid expansion in Africa. The expectation is that the future in the automobile industry for the next 30 years in Africa will closely resemble the success that China has experienced during the previous 30 years. Mr. Long explained, “We all know that during the past 30 years China grew a lot, in the future, we think Africa will grow a lot. That’s why we came to Africa.”

Providing a system for the African people to purchase an affordable vehicle is of the upmost importance for Mr. Long and his inspiration for the innovation. He was adamant in expressing that, “Usually when we talk about the car industry, we talk about how many cars for 1000 persons. In the U.S. 1000 persons have 838 cars, in China the number is 181, in Nigeria its only 64. So, what does that mean? Only 6% [of Nigerians] have a car.” This is something that Mr. Long recognizes as both a problem and an opportunity to expand the business, while providing an affordable solution.

Overall impact

The overall impact of the innovation is that expansion will increase the global business as a whole. The new market entry into Africa creates a sense of global unity by instilling the business model into uncharted territory. Mr. Long touched on how the coronavirus pandemic has played a major part. He stated how the China, U.S. and Europe markets have been deeply affected by the pandemic, but Africa has not been impacted in the same manner. So, the growth in Africa has had a chance to blossom while the other markets are regressing. The growth rate in Africa is currently higher than anywhere else.

Mr. Long feels that in the short-term future, Carloha can facilitate the bulk of the African transportation needs for years to come. The plan is to start the industry expansion in Nigeria, then progressively make their way into other countries such as Ghana, Congo and other areas. Overall the long-term goal for Carloha is to foster a long-lasting relationship with African consumers, in order to become a permanent fixture in multiple countries spanning the entire continent. Providing affordable cars will benefit the country’s ability to travel further distances and in essence increasing economic stability. The evidence behind this impact is the 1.2 billion people that reside in Africa, that represent a fairly untouched market who will ultimately benefit from an increase in transportation options

Business benefit

Carloha has acquired a factory in Nigeria that is flourishing. The growth rate of the company within Africa is at the 50% mark on a monthly basis. For other countries, the growth rate of 50% yearly is suitable, but the market in Africa is growing at a rapid pace. The revenue is over $3 million on a monthly basis. This is a major accomplishment and increase for the company as a whole. The company currently has 80 Nigerian people on the payroll. As the company continues to grow within the market, the expectation is that they will continue to hire within the local communities.

Other benefits to the business provided through the innovation is a goal of 2% market share in Nigeria, while providing a more sustainable inventory of vehicles for the local communities. With the largest market in the U.S. as its headquarters, Carloha has the ability to maximize the benefit of the global resources. The company also has the benefit of utilizing the China manufacturing experience. This experience will benefit Africa as a whole, because the plan is for the company to remain in the area long term, and begin to create more jobs.

Social and environmental benefit

The innovation Carloha provides benefits multiple parties globally. Their products and services can shift the entire infrastructure within several countries in a positive way. The increase in job opportunities makes it possible for local citizens to learn new skills that may not have been available to them before. These opportunities benefit the economy as whole. Once the company expands into different surrounding countries, it can create promotion opportunities for even more citizens as new facilities are built.

The impact of growing nations gaining transportation resources will drastically change society and the environment altogether. Once there are more cars on the road, the need for more roads and highways will become inevitable. This will open the door for employment opportunities to construct these new roadways, while simultaneously providing easier routes for people to travel. Once additional people have affordable and reliable vehicles allowing them easy travel to different areas, it creates opportunity for trade and business between different neighboring countries to grow. Overall, society benefits from easier access to free-flowing transportation and the economic benefit of job security.

Interview

Liang Long (Leo), CEO