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By Soumiya Awasthi | August 07, 2020
Retailers looking for ways to accelerate their business must consider the EMI model. The business disruption caused by the COVID-19 pandemic has taken a toll on most of the retailers, but with the gradual reopening of businesses, EMI-driven retail purchases have increased even for low-priced items. A recent survey conducted by Pine Labs and ZestMoney, revealed that 72% retailers were promoting EMI schemes at their outlet during the lockdown. 1
According to The Economic Times report, Ritesh Ghosal, Chief Marketing Officer of renowned electronics retail chain, Croma revealed that most consumers have started purchasing lower-priced products on EMI and are opting for longer repayment tenure. Adding to it, Director of Vijay Sales, Nilesh Gupta disclosed that EMIs on cards now account for over 80% of total card swipes which earlier was around 60%.2
EMI has been gaining momentum in India and Pine Labs offers the same through both credit and debit cards. This provides the customer the convenience to a buy a product of his/her choice without spending a heavy amount all at once.
The more affordable a retailer makes the price of acquiring a product, it is more likely to attract customers. The cost of a product is a deciding factor for most customers whether they want to buy a product or defer the decision to a later stage. In times like these, when retailers are on the lookout to win back customers to their stores, offering EMIs can be the X factor to attract new and retain loyal customers. EMIs tend to attract such customers who would otherwise be put off by seeing the price of the product, but the option of paying for it in EMIs increases the chances of customers giving the product a second glance and in most cases buying it.
Though customers end up paying the total amount for the product in no-cost EMIs, the perception of paying less because they do not pay a lump sum amount but make partial payments every month is the key to convert those casual store walk-ins to sales. This not only turns prospective consumers into customers but also helps in retaining old customers.
EMIs certainly play a significant role in attracting customers to your business. To know more about Pine Labs' affordability solutions that offer no-cost EMI directly at the point of sale, click here.
1 Source: https://www.pinelabs.com/media-analyst/94-retailers-prefer-digital-self-serve-emi-financing-pine-labs-and-zestmoney-survey
2 Source: https://economictimes.indiatimes.com/news/economy/indicators/emi-purchases-on-cards-goes-up-with-consumers-buying-even-low-priced-items-on-finance/articleshow/76285454.cms?from=mdr
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