Flipkart to Introduce EMIs on Debit Card on Big Billion Days Sale
The e-com giant, Flipkart has made a major announcement about Big Billion Days sale. The company is likely to let consumers buy products on EMI using debit cards.
Big Billion Days are one of the most sought after online sales. Flipkart reportedly sales over a billion products during the sale. The decision to let buyers make a purchase on equated monthly installments (EMIs) using debit cards is likely to boost company's revenues. The facility will be available for a special group under Flipkart's white list.
Sandeep Karwa, the head of large appliances at Flipkart said that there is a large population of users on Flipkart that is not able to shop for high-value products because they lack credit cards. This plan of making a purchase using debit cards on high-value products will push the overall sales up.
Flipkart already has the EMI facility on high-value products on credit card transactions. The company is in talks with State Bank of India and Axis Bank to launch a pilot project. As per the data, there are only 3.14 crore credit card holders in India while the number of debit card holders is 79.38 crore. Flipkart wants to bank on this high number to boost company's sales.
There are few online services that offer customers to buy products on EMI without a credit card. Services like Finomena, Snapmint claim to have thousands of transactions happening every day. However, these services charge interest up to 13% of facilitating such transactions.
The company is launching its own private label. Flipkart is likely to rebrand the Home Appliances with the new label. Karwa also confirmed that Flipkart is looking to open new warehouses to improve supply and operation chain. It will help big brands to ensure faster delivery to end customers. The new warehouses shall be opened before the festive sale starts. The company has 10 warehouses across India, the number will go up to 17 by Diwali this year.
Flipkart is trying on all fronts to boost its gross revenue. The company has a target to double the growth in large appliances segment this year. Most of Flipkart's large appliance sale is from its television business. While the company will introduce a flutter of discounts in beginning, it will soon reduce the same by end of the year. Flipkart has a target to break even by end of this financial year.