DBD (dealer buy down) is a fee paid by a merchant to banks and non-bank companies for providing zero-interest EMI payments facility. Retailers pay DBD charges close to 1.5 percent to NBFCs on financing mobiles.
Dealers of Vivo, an offline-focussed brand, have waived off DBD fee to aid mom-and-pop store owners burdened by dwindling sales in the offline channel and mounting losses.
As per latest data by research firm IDC India, the share of offline sales in the June ended quarter declined 56.8% on an annual basis, while decline in online sales was lesser at 39.9%.
“Our valued retail partners have shown immense resilience and have worked tirelessly to ensure healthy growth during these testing times. As we grapple with the global pandemic, we feel it is important to stand with our retail partners and protect their business interests,” Nipun Marya, Director- Brand Strategy, Vivo India said.
The All India Mobile Retailers Association (AIMRA), which represents 150,000 such sellers have been pushing all brands to incentivise the offline channel by ensuring price parity and equal distribution of stocks in both offline and online in the upcoming crucial festive season.
“VIVO is a trusted Mainline Brand in India, supporting retailers when the economy and businesses are in crisis. Retailers are thankful and will continue supporting Vivo in each and every store in India,” AIMRA said in a tweet.
“We thank All India Mobile Retailers Association (AIMRA) for recognizing vivo India’s effort in sustaining growth prospects for offline retailers, and hope for a speedy economic recovery,” Vivo’s Marya said.