Technology can impact business!

When I  heard that "UPI" is killing the candy business, I was taken aback....did I hear it right or it was something else. Further exploration, was an eye opener with hard to believe detail as to how a business was built on "chutta nahin hain" went downhill as UPI arrived.

In early 2010s almost all big Candy payers, including Mondelez, Mars, Nestle, Perfetti, Parle and ITC reported staggering growth and future prospects. But as UPI arrived, most of these brands have reported a steep decline in sales of toffee. Hershey's, one of the world's biggest chocolate and toffee maker said India is one of the worst hit markets in the post COVID era hitting their expansion plan.

So what really changed? Before UPI, shopkeepers would trade toffees for loose cash, a transaction that wasn't happening the other way round. These small amounts over days did wind up to becoming large sums of money, as accepted by many buyers in studies. With UPI, all of this stopped. People paid the exact amount that was due with no scope for change, ultimately eating up the daily toffee sales.

The pandemic added fuel to the fire. With most of the audience scared of the pandemic, everyone wanted to do contact less payments. This also created a sort of push towards digital payments and toffee went of the picture. No chocolate (toffee) company would have ever thought of finance products as their astheir competition. Toffees were cash substitutes and UPI replacedthis requirement and behaviour.

It is a big lesson for any business as one need to keep an eye on "What are the reasons people buy our product and what would change that behaviour? Do we find reasons which aren't really our direct competition but can potentially replace our product usage?"

A lesson on how technology can impact business.

Courtesy. What'sApp

Tailpiece.

Got up at 3, the chores and we were ready well in time. We kicked off for Muhamma for Lekha's dental appointment at a half past 5. Breakfast was around a quarter to 8 at the Aryaa's restaurant at Edappalli. 

We reached Mallan's clinic around a trifle past 9. A pre-surgery conversation with the doctor made us understand the current impasse and proposed corrections. Work over, we set off for Panampilli Nagar to buy medicines and to have lunch at another Aryaa's outlet.

We commenced our return trip soon after and reached Guruvayur by a quarter past 4. Bought our fruit basket and finished a small job at the bank.

Settled down at home and Lekha needed nursing after the surgery that she'd undergone today.