How demonetization help Indian economy? Is Demonetisation a failure or success?
These days India is going through a great change called demonetization due to which old currency of INR500 and INR 1000 has been banned. Actually currency demonetization is an act of stripping a unit of currency legally. It is based on the fact that old currency will be retired with changes in currency unit.
After 8Th of November of 2016, when INR500 and INR1000 got banned. A tremendous change occurs in every field whether it is in local market, banking sector, marketing sector, or ecommerce business, and daily life of course. People were facing more problems of cash and only limited amount can be withdrawn from ATM or bank. Indian citizen move towards net banking and payment through internet wallet. People hugely move towards internet for most of their needs. Each and every people are affected by this announcement but it is not an issue for honest tax payers. According to government, if you have cash up to 10 lakh and you can prove it legal then you don’t need to worry about currency retirement. This creates problems for those who have plethora of black money in cash. Here are some good reasons of Demonetization:
- It applies a break on black money.
- It helps in controlling corruption.
- It brings transparency in economy.
- It can stops circulation of fake currency.
As demonetization affect almost everything and every field of life, in this case marketing and digital marketing is greatly affected. Let’s see how this after currency demonetization will impact business growth in India.
Digital marketing is a marketing tact which involves latest technology and digital media in marketing for advertising, selling, and purchase of any product or service. It involves a consistent evolution of strategies for enhancing user traffic on website, their engagement and interest in business, conversion rate, ROI, and many more. Since Rural areas are still in developing condition so not able to understand their strategies and its benefits also people feel insecure for online payment and they have trust issues towards digital media. Although these thought cannot pull down growth of digital marketing in India. Young generation understand its benefit and exactly how to involve in digital marketing with high benefits.
Since demonetization greatly affect selling and purchasing of goods with marketing strategies, so digital marketing is also impacted by this announcement in India.
What will the impact of digital marketing after currency demonetization in India?
Demonetisation brings tremendous changes in digital marketing with some positive and some negative points as well. Various sectors of digital marketing are affected in different aspects. Just after announcement of currency ban in India, there is a great fall in marketing only because of scarcity of cash. People suddenly cancel almost all Cash on delivery order or many of them offering old currency to marketers which led to great loss. Although Cash on delivery is changing to card on delivery with aided effect of enhancing customer’s relief still a temporary fall in digital marketing can be clearly seen but it is not for last long. Future will definitely brings positive change in digital marketing.
Digital marketing growth in India
Digital marketing has a bright future in India because of various reasons and demonetisation is an added reason. As this will brings an era of cashless India where digital media is being used for selling, and purchasing. Card or E-wallet play vital roles in marketing sector instead of cash all because of lack of INR currency and its limited ace through bank and ATM. People moving towards Digital India and this is exactly how Digital marketing can be assumed as a great future in In India in coming years.
As digital marketing has various sectors and all of them has been impacted by demonetisation. Ecommerce is a vast sector which plays a crucial role in marketing sector as well as in people’s life and so also not an exception to be effected by currency ban. Here are some brief point which can get you understand how ecommerce business is impacted.
10 reasons how currency demonetization will impact business growth in India
There are various changes occurring in ecommerce business and these are classified as long term and short term effects. Just after currency banned in India ecommerce business were facing with a sudden falls but it brings some vigorous positive changes as well which can be last for long time, these are:
- It causes break on cash on delivery payment. Many ecommerce marketers stop cash on delivery payment this brings a sudden falls in marketing because most of the people still have trust issues for online payment.
- Marketers stop accepting old currency of INR500 and INR1000 just after demonetisation which results in vast number of delivery returns for Cash on delivery order.
- This trend emphasise on payment through digital mode. Scarcity of cash forced people to use online payment mode or E-wallet. Special offers are being given on online payments.
- It leads to increment in delivery returns because of lack of cash. Most of the user after COD delivery said to take old currency otherwise asked to return the delivery. This led to many orders getting cancelled and consequently results in heavy loss to marketers.
- Ecommerce going towards offering heavy discounts and drive sale offers to increase sale by online payment.
- They also put discounts via online or card payment to increase engagement of users in selling and purchasing.
- Sudden increment in use of online wallet likes Mobikwik, pay money, Paytm, etc.
- Increase user traffic on even small website, like: big basket, grofers, etc., because these are accepting cards and online payment and scarcity of cash forced people towards these online stores.
- Increase in app download and their use because it gives a platform for better experience of marketing with special discounts and offers. It provides an easiest way to track order with keep payment details safe for further use as well.
- Every business man is looking towards ecommerce instead of commerce business because of demonetization. Since people are moving towards digital payment and digital marketing so businessman is also moving ahead accordingly.
Demonetisation brings so many changes in daily life and online marketing as well because of lack of cash. It can be easily seen that there are some short term effect and some long term effect on ecommerce business of currency banned in India. Short term effects can be shorted after some times when new currency will be circulated in market in well proportion but even long term effects can sustain for long time.
These effects will change ecommerce and its growth in India for coming years. Ecommerce moving towards fully digitalization and people and marketers will fully involve with through digital modes, like: cash on delivery changes with card on delivery, physical wallet changes with E-wallet, people will spend more time on online marketing instead going to local market, etc. So it can be a wise statement that ecommerce will have great future in nearby future and it wills obviously a favourite place for most of the need because of its transparency in marketing activities.