It is essential for any retail business to have a strong presence and a well-planned strategy for their products to thrive in the market. One of the major challenges faced by most businesses is that they have to ensure that their products continue to appeal and stay relevant, while the business itself attempts to retain and expand its consumer base.
EMI offers are steadily becoming popular as they significantly widen one’s purchasing power and options. They have been welcomed and implemented by businesses that sell electronics, furniture, home décor, musical equipment, etc., as it allows these businesses access to larger volumes of subscriptions.
In fact, even businesses like Vinayak Furnishings, a local home décor business from the North East, operating out of Guwahati have adopted this mode of levying payments for their products.
Recently in March, Vinayak Furnishings implemented EMI offers on their products to commemorate their 12-year anniversary in tandem with the launch of the ‘Home Décor Festival’. They had announced that their products were available under EMI with a down payment of Rs. 12. They had tied up with Bajaj Finserv, a financing company that operates across 950 cities in India. Vinayak Furnishings have more than a decade’s experience of rendering services to customers in the region with home furnishings such as dining and crockery sets, office and home furniture, upholstery, curtains, carpets, bed sheets, wallpapers to mention a few.
“When products are purchased under EMI, it tackles the problem of saving for months on end before the customer is ready to purchase the product they desire. In fact, EMI offers increase a consumer’s financial flexibility and the range of products he or she can acquire. For instance, if an individual wants to buy a sofa worth Rs. 1 lakh, with EMI options, he or she can consider purchasing of sets over Rs. 1-2 lakhs. Similarly, we want people to have their dream homes set up with a bare minimum deposit of Rs. 12. Owning a home is a matter of great pride and joy and for Vinayak Furnishings to be a part of that dream is a great feeling,” said Kulen Kalita, Manager of Vinayak Furnishings.
On March 2018, they become the first local home décor business to implement EMI offers on their products in eight easy installments.
“This EMI scheme has given the people a chance to decorate their home in the upcoming festival seasons without putting much pressure on their pockets,” he added.
In the long run, the option of purchasing desired products under EMI makes the customers’ shopping experience convenient and flexible. For businesses that can optimally market their products under EMI, they have the opportunity to attract higher revenue and funnel more investment into their business.
Unlike credit cards, products under EMI are primarily calculated on the price of the product (principal amount), the EMI (constant amount), and the duration of the loan (EMI scheme). The customer has the option to choose the duration of months over which the loan is to be paid off, generally ranging from three to 24 months.
