Currency ban causing tremor in retail industry.
Tuesday, 3rd January 2017
The government’s move of Demonetization has caused a serious tremor in the indian retail market due to the short flow of liquid cash. To understand the impact caused to the retail industry we visited a few stores in the Matunga east area. Matunga is located in the heart of Mumbai city, it is known for its south Indian restaurants and a famous market hub. Demonetization is an emboldened move by the Indian government announced by Prime Minister Narendra Modi on November 8, 2016
As per our analysis with a sizeable magnitude of retail stores like clothing, supermarkets and general stores etc. were strongly affected. In a chat with the owner of ‘Dreams- the world of gifts’, says that “the customers flow has decreased by 30-35% and people have started to swipe their cards more often. 90%of customers only use plastic money such as credit and debit cards”. However, the impact is felt more by small retail organizations rather than organized traders. More and more traders are encouraging alternative methods of payment to keep their business growing.
To conclude demonetization has caused a serious blow to the range of footfalls visiting the stores and people are using plastic cash in place of liquid money to pay. Demonetization will change the fate of the Indian country by making it digital.
