The Government of India demonetised ₹500 and ₹1000 banknotes on 8th November 2016. At bounty, we studied the demonetisation impact on brick and mortar stores in Bengaluru.BbountyApp rewards its users for simply walking into a partner place (over 20, 000 partners). With over 4 lakh downloads of bountyApp, we are in an enviable position of having rich user data. Consequently, we are able to understand consumer behavior in a variety of commercial spaces.
Consumer Patterns Before and After Demonetisation
To understand the impact of demonetisation, we compared the before and after consumer patterns using the data on bounty. We noticed interesting behavioral changes! We compared the consumer pattern between 2nd and 6th Nov with the consumer pattern between 9th and 13th Nov. Our most noteworthy observation – consumer transaction at large restaurant and supermarket chains that accept debit and credit cards, went up by a staggering 192%!
On 9th Nov, first day after demonetisation, footfall in stores increased by 18%. With the banks being closed on the 9th, consumers were probably looking to transact with the old notes.
We also noticed that consumers did not compromise on basic necessities such as food and grocery. Restaurants and cafes saw a rise in footfall by as much as 20%, supermarkets and grocery stores by about 9.5%! Non-basics such as book and optical stores saw a reduction in footfall – book stores by 16% and optical stores by 18%!
*This data is derived by studying consumer behavior of Bengaluru users, who are predominantly in the age group of 18-35.
Some Media Houses Published Our Study on Demonetisation Impact
Deccan Chronicle – Card transactions zoomed 192 per cent between November 9 and 13: Study
Bangalore Mirror – Enjoy the Low Prices, For Now
Red News Wire – Impact of Demonetisation on Brick and Mortar Stores
Pocket News Alert – Ground Reality of Demonetisation Impact on Brick and Mortar Stores