Shoes on EMI

One of the world’s largest conglomerates, the Tata Group (Revenues – USD 83 billion in FY 11), sells shoes on EMI in India.

The shoe brand Tashi, is a speciality footwear retail chain owned by one of its companies -Tata International. The shoes business is a great business to be in. Its recurring revenue in retail, lots of outsourcing opportunities globally and can be superbly value based. Manolo Blahnik anyone?

The thing is we see shoes on sale all the time. Shoes on EMI, in three instalments (with HDFC Bank credit card), this is a first. I am curious. What happens if someone buys a pair on EMI and then refuses to pay the 2nd and 3rd instalment? Who bears the loss? Who owns the shoe then? Will it be repossessed? Will it find its way into the used shoe market?

Isn’t the basic principal of EMI to allow people to buy big ticket items that they can’t afford? Fail to understand the logic here.

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