Submitted by: Namans Shah
Regarded as one of the major steps towards eradicating black money problem in India, Prime Minister Narendra Modi announced Demonetization on 8th of November 2016. Demonetization or in simple words discontinuation of 500 and 1000 rupee note has been hailed as a masterstroke by PM Narendra Modi. This Demonetization which initially paralyzed the economy is now behaving as a catalyst towards Digital Payments Ecosystem. This act triggers spurt in Digital payments paving the way for the country towards a Cashless Economy. All this simply means that we are witnessing an Economy Transition. This step by the government seems to have a widespread support from the common people. Let us now analyze the sectors that will be most and least affected by Demonetization with digital marketing.
1)Real Estate
There has been a decline of 37 percent in property registration across Maharashtra since demonetization. The buyers have gone into pause mode due to not having enough cash in their pockets, which has led to a delay in registration of properties. Also, the sellers have withdrawn themselves from investing in any kind of digital promotions as they are confused whether the buyer will fill the form? or will their campaign be a success? and will they get their desired ROI? The luxury real estate sectors graph has seen a decline as most of the transactions in this segment used to take place in cash. People now are not searching for buying homes on any search engines as they do not have enough cash in hand to take the process of registration forward.
2)E-commerce
E-commerce is the one to benefit from Demonetization. There will be few short-term impact on Cash on delivery orders but is sure to be tackled soon. While most of the E-tailers have stopped cash on delivery, they have now introduced alternative electronic payment modules for the consumer such as Card on delivery instead of Cash on delivery, which will help the consumer to overcome the psychological barrier on using these payment modules. During cash on delivery, most of the buyers would return the item which made the logistics cost to be barred by the company, but after demonetization and no COD, the E-commerce companies are sure to benefit as most of the payments will be made online and the company has to no longer bare the handling and logistics charges. It is the idea of boost digital marketing sector.
3)Banks
Banks have suffered the most. The long queue outside the bank branch actually made the life of the workers miserable. Well, now that it is supposed to be Cashless Economy era, Bankers are aggressively selling their credit cards, also most of the banks have their apps where in people can make the transactions from anywhere. Now that banks have too much of cash in hand they are now having attractive schemes for Loans, Credit Cards and also Saving Accounts. All this are sure to benefit Banks in the long run!
4)Luxury Goods & Automobiles
Luxury Goods & Automobiles will have a drastic negative impact. This is because a majority of people spend their undeclared income on all luxurious products. After demonetization, it is likely that all the luxury segments be it electronics, clothing, furnishing, luxury car and allied business sectors will take a hit. Hospitality and Media industry are also likely to get affected by demonetization.
About the Author: Digital marketing is the best way to avail many benefits comparing to offline marketing.
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