Available for Purchase with 24-Month Interest-Free Installments
Number of Transactions in Q1 Up 50% Year-on-Year
Lower Cost Burden Compared to Rental Products
#Jieun Kim, a woman in her 30s who is scheduled to get married this September, recently purchased a wedding bed set at Simmons. Due to the economic situation, Kim felt a heavy burden in making a lump-sum payment, so she utilized the 24-month long-term interest-free installment program operated by the company. Kim said, "It was a win-win situation because I could save a large sum of money and also buy the brand I usually wanted."
Simmons Bed's long-term interest-free installment program, 'Simmons Pay,' is gaining attention from consumers amid the economic downturn. Simmons
As consumer conditions become increasingly tight, Simmons' long-term interest-free installment program, 'Simmons Pay,' is gaining attention from consumers.
According to Simmons on the 9th, the number of Simmons Pay transactions in the first quarter of this year increased by about 50% compared to the same period last year. Despite high inflation and weakened consumer sentiment, the demand for beds has increased as the importance of sleep has been emphasized.
Simmons Pay is a program that allows customers to purchase products in installments without interest for up to 24 months. It is a purchase method, not a rental, so there is no need to return the product at the end of the contract. It can be used with major credit cards such as Samsung, Shinhan, Kookmin, Lotte, Hana, Hyundai, Nonghyup, BC, and Woori without issuing a separate card.
Using Simmons Pay significantly reduces the financial burden of purchasing a bed. The popular model 'Beautyrest Giselle (SS size)' can be purchased for about 127,000 KRW per month or 4,100 KRW per day when using Simmons Pay. The 'Beautyrest William (SS size)' costs about 6,200 KRW per day. Promotional benefits can make it even cheaper.
The lower cost burden compared to existing rental products is also cited as a reason for its popularity. In some rental bed companies, the total expenditure when choosing an installment option can be more than 30% higher than a lump-sum purchase. Moreover, rental products must be returned at the end of the contract.
Simmons introduced Simmons Pay in 2018 and has been steadily operating it. Despite the COVID-19 pandemic, high interest rates, high exchange rates, and high inflation, the company has maintained its long-term interest-free installment policy. This contrasts with most credit card companies and distribution channels that have abolished interest-free installment periods during this time.
A Simmons representative said, "In a situation where consumer sentiment is weakened, Simmons Pay is gaining attention as a realistic alternative that allows consumers to purchase products without the burden of a large sum of money," adding, "With increasing demand for beds due to weddings and new school terms, the high interest in Simmons Pay is expected to continue for the time being."
Meanwhile, Simmons Pay can be used at Simmons' directly operated flagship store 'Simmons Gallery,' consignment stores 'Simmons Mansion,' and the official online mall.
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