Look cool while paying cool!

Innovative ideas are lifeblood for retail to sustain and this very truth is cocooned in the trend-setting package by Levi’s, the pioneer in jeanswear. The king customers can now indulge in flaunting the world-famous brand without burning hole in their pockets. The idea is somehow similar to those small traders who visit houses to sell their goodies on credit. Yes, Levi’s has come up with the idea of selling jeans on EMI!

The scheme has the financial support of the two well-known banks, HDFC and Axis, and if you have the credit card of these two banks you are entitled for the EMI. With the purchase of Rs 1500 and above you can use your HDFC Bank credit card for the EMI scheme, whereas for Axis Bank you have to buy merchandise worth Rs 5000 and above to grab this opportunity. The transaction amount will be split into three equated monthly installments that will appear on the credit card bills of the respective banks.   

The purpose it serves

The idea is striking as a low value item like apparel is not an ideal product category for the high cost of transaction process. These schemes are more popular among consumer durables, automobiles and housing sector where the money involves is relatively of higher value. But for the wide price range of Levi’s merchandise that starts from Rs 1399 and goes up to Rs 40000 the scheme nevertheless holds value for the customers. Levi’s is going to release Diva collection by Tarun Tahiliani and its higher price points will never be a dampener for the aspiring customers as bait of EMI is there to lure them.

The another purpose that will be served through this scheme is presenting its brand image as a big draw for the fashion conscious young adults who will love to don Levi’s but are not ready to shell out money in a large amount. Speaking about the prospect of the scheme,

Mr Shumone Chatterjee, MD of Levi’s comments, “At Levi’s, we truly believe this idea has the potential to change the apparel industry in this country. Considering that only 4-5% of retail in India is organized, and there too only 20% of that lies in the domain of Apparel & Lifestyle, the kind of headroom this industry has to grow becomes clear! This initiative takes us closer to many consumers in the country and enables them to have easy access to the most iconic jeanswear brand in the world.”  

Can competition give a tough time?

The strategy is sure to win hearts of many but the competition can heat up once other brands in the same space follow the example.  “We realize that we need a host of other brands to also offer similar facilities if consumers are to get comfortable with a concept that appears as radical as this one does at first glance! Similar efforts in other industries, eg, housing, automobiles, white goods, etc, have also really opened up the market only when a number of brands explored the opportunity together”, Mr Chatterjee sums up.