Electronics retailers such as Vijay Sales and Pai International saw EMIs make up 70% to 80% of festive sales, directly offsetting sharp hardware price surges caused by expensive memory chips, currency depreciation, and freight charges. Concurrently, business platforms Shadowfax, BlackBuck, and Pine Labs reported soaring revenue and multi-fold profit growth during the September quarter. However, ecommerce firm Meesho warned that recent margin gains will reverse in the near term as aggressive expansion investments ramp up.
Key points
Credit solutions and extended repayment schemes are serving as the primary buffer against…: Credit solutions and extended repayment schemes are serving as the primary buffer against severe electronics price inflation.
Logistics platforms and business payment providers are seeing notable profit acceleration…: Logistics platforms and business payment providers are seeing notable profit acceleration driven by scale and merchant activity.
Ecommerce platforms are intentionally deprioritizing near-term unit economics to fund sea…: Ecommerce platforms are intentionally deprioritizing near-term unit economics to fund seasonal volume and customer acquisition.
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Happy Friday! Shoppers are turning to EMIs as electronics prices rise. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ Meesho eyes growth as costs rise
■ Honeywell’s physical AI bet
■ Virat Kohli’s stake in Agilitas rises
Soaring tech costs push festive shoppers towards EMIs
With prices of smartphones, laptops and other electronics rising rapidly in recent months, consumers are increasingly relying on equated monthly instalments (EMIs) and buy-now-pay-later (BNPL) options to make purchases this festive season, cushioning retailers against a slowdown in demand.
By the numbers: At Pai International Electronics, which operates across Karnataka, Andhra Pradesh and Telangana, 70-80% of smartphone sales this festive season were financed through EMIs, up from 40-50% last year. At Vijay Sales, which has…
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