A successful business man does not restrict himself only to the account books. He or she always keeps an eye on surrounding events. And if the incident is that of demonetisation, then it is compulsion to be alert. As we are all aware, Demonetisation process is undergoing in INDIA – the currency note of 500 and 1000 are pushed out of the economy. Currency change results into the eminent shift in the paradigm of the INDIAN market. This decision of Honourable Prime Minister wobbled the INDIAN market. Many of us fail to decipher the dilemma created in the market after currency ban. This article will give you the clear picture of it.
A sale of goods or services mainly depends on the following criteria:-
- A need or desire of a customer.
- Willingness to pay for the good and services to be use or purchase.
- Ability to pay for the good and services.
All three criteria must be fulfilled to sell the goods/services to the customer. If any one or more criteria are not satisfied then there will be no sale.
Demonetisation reduces the cash flow in the economy which directly affects the need, willingness and ability to pay of the customer. Because of lack of cash in hand, customers are not willing to buy any commodity or product. So there is decrease in the sale of the goods and services. If we consider the online marketplaces, most of the cash on delivery orders are cancelled by the customer because of lack of cash resources. It causes heft loss to all the online market places.
But In the era of digitisation the customers use the options like online banking or mobile wallet for the payment. There is no issue of cash resources as electronic money is used for transactions. So the revenue generated by it is unaffected. According to survey, sale of apparels, shoes, electronics is not affected at all. So we cannot say that the market is totally collapsed. Many sellers stop promoting and advertising their product at online marketplace under the wrong impression of not getting sale. It is suggested that you continue all the marketing campaigns as it will help you to improve your market index. This is the start of digital era and gradually the use of electronic money is going to increase to the extent of reducing the use of physical cash to lowest requirements. Our Prime Minister also focuses on the target of making India Digital. The future will be dominated by the trend of “GO CASHLESS”. Perception of all these aspects leads to the conclusion that continuing all marketing campaigns will help you to improve your market index. Market index is directly related to the market share for that product category. So this is the right chance for the vendors to gain some ground for them and create brand value.
It’s a time to expand you customer base by brand awareness and promotions. Visit http://www.bmconsulting.in/ for further insights and consultation by market strategist.
(Compiled by Nikhil Patil)