Wednesday, July 20th, 2016

The importance of EMI in Indian Business

Manik Roy | July 20, 2016 11:30 am Print
Actually, the main purpose for the Monthly Installment Marker(MIM) is to make the minimum fixation for the monthly installment payment of the Indian consumers
Buying car through EMI : In the Indian automobile industry, the monthly installment is the prime booster for their product sale

For any Indian consumer, easy monthly installment is a boon for fulfilling their purchasing dream. The reason is that it will make their payment capability easier as well. But one thing is sure that if the total purchase amount is converted into some parts, then the buyers can feel comfortable to pay it in equal installment. For the context of the Indian consumers, EMI is an instant fillip for them. For this case, there should be a marker for it for all Indian buyers also.

Moreover, this marker will be fixed in such a way that the Indian buyers can pay their monthly installment in the easier way. The most important proposition is that the Monthly Installment Marker (MIM) will be determined on the economic status of the Indian consumers as well. It is observing that the Indian consumer society is primarily occupied with the middle-class group who are highly powerful in the Indian purchasing scenario as well. Actually, the Indian middle-class group rotates the Indian business cycle through their purchasing involvement and ability. It is true that this middle-class group has two varieties.

One is the higher middle-class and another is the lower middle-class also. Therefore, the Monthly Installment Marker(MIM) will be based on this criterion as well. The default Monthly Installment Marker(MIM) for the lower middle-class will be Rs. 2,500 and for the higher middle-class will be Rs. 5,000 as well. These demarcations will be visible throughout the Indian business circle as well as the consumer society also.

Actually, the main purpose for the Monthly Installment Marker(MIM) is to make the minimum fixation for the monthly installment payment of the Indian consumers. This kind of fixation will be beneficial for the Indian consumers as well as Indian product manufacturers also. If the Indian manufacturers fix their product price according to the Monthly Installment Marker(MIM), then they will get benefit in the long run as well.

Automobile
In the Indian automobile industry, the monthly installment is the prime booster for their product sale. The reason is that the Indian middle-class group is steering its movement through its direct participation in their product selling. Therefore, the Indian automobile industry is highly depended on EMI for pushing their sale upwards. Practically, the monthly installment is a norm for any automobile buying. If you are intelligent, then you will see that the middle-class group has keen liking towards EMI due to its easier repayment as well.

The most challenging matter is that when you will look for deeper sale into the Indian society for your automobile sale, then you have to decide the price of the automobile according to the Monthly Installment Marker(MIM) norm. It is not an impossible task but if you can do it, then you will make huge impact on the Indian business circuit as well. Moreover, it will be more feasible when you will offer the Indian consumers a customization option for their automobile.

Consumer Electronics

For consumer electronics segment, the EMI is highly visible always. But sometimes, the default Monthly Installment Marker(MIM) will come handy if you implement it wisely. It is observed that nowadays, the consumer electronics segment has vast varieties. Therefore, there will be huge scope for the proper use of EMI through Monthly Installment Marker(MIM) norm. Actually, what happens is that in this segment, all kinds of economical groups will be visible and you will feel the heat of it as well. Therefore, you can envisage the EMI in such a way that all quarters of the Indian society can taste the power of consumer electronics easily.

Fashion

In fashion industry, the concept of EMI is very much scanty at all. Actually, what happens is that the average price of Indian fashion products is usually within Rs. 2000. Therefore you can’t think about the EMI in this context. Rather, if the designer fashion product is concerned, then you can think about EMI through Monthly Installment Marker(MIM) norm. It will make the payment easier for the Indian buyers as well.

Pharmaceutical
Sometimes, the life-saving drugs become very expensive for the patient party. In this context, the introduction of EMI is applied, then the pharmaceutical and the Indian consumers will be benefited as well. Particularly, if you apply Monthly Installment Marker(MIM) in this segment, then you will able to give the Indian patients a great relief as well. Moreover, you should know that the average medicine expenditure in an Indian family per month is Rs. 1500. Therefore, you could not think about the introduction of EMI in this amount of expenditure. But when the expenditure exceeds more than Rs. 10,000, then you can think about Monthly Installment Marker(MIM) norm.
Therefore, the importance of EMI in Indian business has the two-way directed benefits which the Indian consumers and the Indian business will be in a win-win combination as well.

Manik Roy
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