The demonetization move acts as a further impetus for online players to leverage the shift to digital platforms for consumers, reveals a report by premium lifestyle online portal Luxehues.com.
The study, conducted in November, is a result of approximately 150 qualitative interviews based on a structured questionnaire.
On being asked if demonetization of Rs 500 and Rs 1,000 notes would impact the way brick-and-mortar retailing of premium and affordable luxury products had been operating so far, the general consensus was that it would not have an affect on consumers already shopping via credit or debit cards.
However, there is a feeling that some of the retail offline demand will eventually move to online due to sheer convenience and value that the channel offers.
The study reads: “A lot of the high-end purchases made at the stores using cash were primarily discretionary spends because consumers could easily afford it. There is one section of consumers who would not be able to convert this card purchase and hence demand from this segment will go out of equation over the next two to three years until fresh cycle of liquidity in the new currency became easy to access.
“By then the online channel would also have grown significantly. At the same time, several felt that if the cash-on-delivery facility dried up, it would impact online sales in the near term even as transactions would start to become much healthier.”
Puneet Gupta of Puneet Gupta Invitations, which provides bespoke invitation cards, says he is hopeful this will lead to a structured and simplified style of business in the Indian market.
“A lot of Indian clients prefer to pay in cash and we are hoping that this demonetization move will streamline things and make it all digital,” Gupta told IANS.
As per the study; e-commerce will propel faster growth in the affordable luxury segment by providing distribution access, authenticity of goods purchased is a key criterion for online shoppers, and niche brands must invest in creating brand awareness to facilitate faster growth.
Woodsia is a brand known for manufacturing exclusive gold and silver plated decorative items using natural products and their by products. It is also retailed via Luxehues.com.
Anuj Malik, the brand’s proprietor told IANS here that the Indian market lacks takers of these products which are made using flowers, leaves and more to create immortal gifting items through electroplating technology — as there’s dearth of understanding the thought and value behind these. He said they get better response from clients in Canada, US, Australia, New Zealand and Belgium.