This Christmas will probably be the worst for the entire world. The market slowdown has a direct impact on the mindset of the people. One might wonder if there is a recession in the market, what it has to do with the celebrations of the festival. The answer is simple: this is the time when people buy and sell a whole lot of gift items outstretching their limit. Now, with economic slowdown at the back of their mind, they may not be very generous with their money. As a result, the business and the rotation of money will be affected.
IT being the last priority on the buying chart of consumers, the slowdown has already cast its dark shadow on the IT industry. With corporates having put their purchasing plans on hold, the market has lost its lustre. The cash flow has been affected severely. There have been payment issues across the board. The margin of profit has dwindled.
All of a sudden, a large number of buyers in the IT and ITeS sector have gone into hibernation. The number of young people working in BPOs and call centres, who were the major consumers of digital lifestyle products, mobile products and even mobile value-added services, are now more concerned about their jobs. The corporate expenditure has also gone down. They have introduced austerity measures in their day-to-day functioning. The domestic buyers have also become careful in spending their money. And, nobody is actually sure of how long this slowdown will continue. The industry pundits are also unable to give any clue.
On the other hand, imports are most likely to get streamlined. Earlier, people having one or two crores of rupees used to travel to Taiwan, Singapore or Hong Kong for buying IT products or import directly. With the appreciation in the dollar rate and the rising cost of air tickets, they no more find it profitable. In this scenario, the established importers find less competition in the marketplace and are thus able to enjoy a good margin. Similarly, the pricey dollar has also brought about a change in the mindset of gray marketers. Overall, the market is going to be more organized and if the IT industry people continue to persist in business patiently, they will have a good time. The second important thing is that there will be a number of defaulters and fly-by-night operators. So, one should be on one’s guard in dealing with such shady characters.
Sanjay Mahapatra
Editor
