ICB » Fashion » As sales tank, Fashion eCommerce companies resort to “buy now pay later” concept

As sales tank, Fashion eCommerce companies resort to “buy now pay later” concept



As the companies stay hung through a thread due to the lockdown imposed by the government as a vital measure to prevent the spread of the coronavirus disease, the eCommerce fashion sites find their way out.

Many fashion websites like Tjori, Voylla, Peachmode amongst others are trying to entice customers with great discounts and special sales up to 80% with a promise to deliver it to them after the lockdown. This move comes with a simple intention to cut down the growing pile of inventory in the warehouses and to attract more and more customers, as they have abundant time to scroll through the collection of these websites while they sit at home.

“People are sitting at home and have more time to engage with the brand and look through our products. We do not want to close our doors on them,” said Vishwas Shringi, founder of Voylla, which sells jewelry and other fashion accessories,

This concept of “buy now pay later” is helping the e-tailers achieve their objective as a famous fashion website “Tjori” was able to achieve its target of 70% normal sales as a result of this initiative and started manufacturing essential items like sanitizers and disinfectants in the wake of coronavirus pandemic. On the other hand, large eCommerce companies still choose to keep their deliveries at a halt for the non-essential items while disseminating the essential products throughout the country.

“We built our lineup for the season and had already made purchases and had to pay our weavers and craftsmen,” said Mansi Gupta, founder, Tjori that sells home decor, apparel, and other lifestyle products.

Courtesy-Tjori

Peachmode, another fashion selling website has also opted for the same model on which Anupam Tulsyan, the co-founder comments “We are giving 25% more discount on selling price without looking at our margins.

The ban on nonessential items during the period of lockdown put many businesses in economic stress and left them wondering about their survival in the market, but as the saying goes “necessity is the mother of invention” it seems as if companies have pivoted their ways of conducting business and are trying unique approaches.

The eCommerce companies are somehow still managing to take orders from the customers and are not completely shut as compared to the “brick and mortar” stores. This has compelled many large retailers like Reliance Retail, Levis Strauss, etc. to contemplate on their online presence.

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