I recently saw an advertisement and it caught me off-guard. I was bewildered for a moment. Most of them who did come across this ad would have felt the same as I did.
Levis and Co which invented Jeans and made it so popular and trendy that everyone wanted to own a pair, has come up with a unique concept to beat the slow sales and keep its cash registers clinking.
They are it seems offering jeans with an EMI option for 3 months with 0% interest. Its a pilot project that's been started first in Bangalore and it will be introduced to other cities as well if this scheme works out. They have a tie-up with ICICI credit cards. Minimum purchase must be of Rs 1500. So if I buy a pair of jeans for Rs 1500, then I have to pay Rs 500 each month for the next 3 months. And the jeans company takes care to pay the bank's service charges for these 3 months, so you need not have to shell out anything extra. Isn't this cool? Its weird too. It does seem to be working out for them. It seems the sales has gone up by 50%. So just keep your eyes and ears open; for you might just end up discovering the same scheme in your city.
Maybe the company is doing it due to downturn. People are not spending on apparels as much as they used to spend earlier. But apparels in India is not value-priced. Or is this scheme available only on nominally priced jeans? What if I want to buy a cool pair of jeans with Swarovski crystals embellished on the rear or real diamonds maybe?
It would have taken everyone by surprise, the retailers, the competitors. It seems to be the first of its kind for apparels. I am not sure if this has been already tired anywhere else in the world. But does it make sense? How about the returns, the transaction charges incurred? Would it work out for the company? Would it work out for the franchisee? We have seen EMI options being offered for cars, consumer durables where their value is high and the product can be recovered if the customer defaults.
What would the bank do by repossessing Jeans? Wash them again, redo the embroidery, stud in crystals if they are broken or worn out, fix the fly and resell?
I wonder what would they do if someone defaults payments. Would the bank's recovery agents chase that person wearing the jeans and strip him off on the road!!!!
Talk about new ways of selling!!