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Asian Journal of Management
Year : 2018, Volume : 9, Issue : 3
First page : ( 1208) Last page : ( 1212)
Print ISSN : 0976-495X. Online ISSN : 2321-5763.
Article DOI : 10.5958/2321-5763.2018.00194.4

Examining the Effect of Demonetisation on Grocery Retailing in India

Bhat Ishfaq Hussain1,*, Singh Soumya2

1Research Scholar, School of Management Studies, University of Hyderabad, Hyderabad

2Research Scholar, School of Management Studies, University of Hyderabad, Hyderabad, souharsh@gmail.com

*Corresponding Author E-mail: ishfaq8086@gmail.com

Online published on 30 January, 2019.


India is known as the land of kirana stores, as it has a number of small unorganized retail shops at every nook and corner. This has always made shopping very accessible and time saving in India. But in the past few years this highly unorganized face of the Indian industry has undergone tremendous change. While transforming itself into a more organized sector, the sector has contributed, on an average, about 10% to the country's GDP every year. The dawn of the Internet era opened up amazing new possibilities and e-commerce has emerged as a perfect amalgamation of technology and marketing acumen. The Internet has been increasingly used to facilitate online business transactions between business entities and consumers for various products and services. A number of retailers have set up systems to accept orders over the phone, apps and or even on websites which in itself can be an independent business model. One can buy Indian grocery items online from online grocery stores at the most affordable prices and can avail heavy discounts on each purchase in the form of loyalty points or 8th loyalty cards. This study explores theeffect ofdemonetisation policy (launched on November’2016) on grocery retailinginIndia. The study is exploratory in nature and secondary data was used to collect the data. It was found that the sudden cash crunch evoked by demonetization proved to be a significant motivator for transacting online. Even the connoisseurs of kirana stores and roadside stalls for grocery shopping turned to e-stores for their daily necessities. Although demonetization successfully created a space for e-stores esp. e-grocers in the retail sector, its role is limited only to being a switching barrier.



Online Shopping, E-grocery, Switching Barrier, Perception, Demonetization.


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