After trying out an offline-model, the Flipkart-owned fashion and lifestyle e-commerce company has been repeatedly experimenting with newer schemes and incentives to give Myntra a much-needed makeover. In a bid to give sales a push, Myntra has launched a first-of-its-kind EMI option for apparel in India.
The company will now offer EMI’s of as little as Rs 51/- a month for the purchases of clothes and other products on its platform. Myntra is the first online fashion retailer in the country to offer EMI’s on clothing.
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What Is Myntra EMI?
The Myntra EMI offers an Equated Monthly Instalment option like the one typically offered on credit card purchases of high-value items. The Myntra EMI is available for products sold on Myntra which are worth Rs. 1,300 or even less. Now you can buy any clothing, apparels or accessories on Myntra, and pay later with the easy instalment option.
Myntra is hoping that the new feature will help it to broaden its appeal, and at the same time will provide an opportunity to explore a new domain of buyers who want to try and experience expensive brands and clothes.
Myntra EMI: How It Works?
Myntra has partnered with multiple Indian banks which include HDFC Bank, ICICI Bank, Citibank, State Bank of India (SBI), Kotak Mahindra Bank, Amex, HSBC and many others to offer an exclusive EMI option on all products sold on Myntra.
The banks will charge a 13 to 15 percent interest on the purchases, which can be paid over a period of 3 to 24 months.
The new Myntra EMI scheme has been launched to encourage customers to buy first and pay later. The feature will help young buyers who are fashion-savvy and have lesser financial responsibilities. There are a number of financing companies in India who offer this feature, but it’s the first time a company has launched a Pay Later EMI option for clothing and apparel.
Myntra is planning to target buyers in Tier II and Tier III cities who like to spend more strategically and spread their expenses over a period of time.
Can Myntra Compete With Brick And Mortar Stores?
The new Myntra EMI will help the online fashion e-commerce company to widen its customer base and compete with the brick and mortar retailers. The fashion retail industry in India is going through a digital transformation as more buyers are getting onto the internet.
Around 10 percent of the Indian fashion market has already been digitally influenced and presently stands at a $70 billion threshold. The market share is expected to increase fourfold to around $30 billion by the end of 2020, which will constitute about 60-70 percent of the total branded apparel online market.
The EMI Option is Myntra Exclusive, No Love For Jabong
Myntra acquired Jabong two years back, and the company is finally looking to increase the differentiation between the two platforms. Myntra will continue to focus on the mass premium fashion segment, and Jabong will now focus more on the luxury and global brands in the premium fashion segment.
The EMI option is not available on Jabong, as Myntra is trying to turn Jabong into an exclusive platform for private labels. Jabong and Myntra have a combined base of 12 million customers.
Myntra will continue with its offline retail model, and is also planning for a franchise-based business for its global brands with third-party sellers!