The Prime Minister’s November 8th announcement made way for a financially tumultuous fortnight. We published our initial view within a week outlining the likely impact on various key sectors and the consumers in the coming months post demonetisation. Refer note here.
Here’s an update on the deeply significant demonetisation drive, with extensive insights from ground zero. The word on the street and in power corridors, is still that this move has completely eclipsed any previous radical experiments around the Indian currency. That said, the initial shock and awe have made way for some constructive criticism both from consumers and political leaders of opposition parties. Moreover, numbers show that it is not just Indian consumers and organisations that are keeping a close watch on developments, but global media and organisations as well. At this sensitive juncture, it is well worth it to move ahead with an ear firmly to the ground.
Our view on the first fortnight after the move, is the result of intelligence gathered from Nielsen Mobile Insights, the Nielsen Scantrack Modern Trade Service, the Nielsen Scantrack Cash and Carry Service and consumer conversations on social media. In this edition, we move from the macro view to an understanding of key affected categories. Thousands of responses later, we surmise that there is more to unfold with a shake-up in the way businesses and consumers transact. Being yet several weeks away from normalcy in cash flows, businesses would do well to display empathy, adapt, and stay nimble on the back of insights from the market. We trust this note will help strategise for the short term. In the meantime, watch out for further updates as consumers and industry continue to rapidly adapt to the new scenario.
For details, download the full note.