Srinagar Braces for Subdued Eid Markets as Liquidity Crunch Tightens Consumer Belts
By: Javid Amin
As the festive season approaches, a significant shift is underway in Jammu and Kashmir’s market dynamics. A prevailing liquidity (cash) crunch is forcing consumers to prioritize budget-friendly products, leading to a noticeable downturn in overall market activity, particularly in the lead-up to Eid al-Adha.
Farhan Kitab, President of the Confederation of All India Traders (CAIT) Kashmir unit, addressed these pressing issues on June 15th. He highlighted the impact of the cash shortage on consumer spending power, emphasizing the need for retailers to adapt. “The current liquidity situation is severely affecting consumer spending power,” he stated. “Retailers must adapt by offering more budget-friendly products to meet the changing demands of shoppers during this festive period.”
Building Customer Loyalty Through Exceptional Service
Recognizing the importance of customer retention during challenging times, Mr. Kitab stressed the importance of exceptional customer care. “We, as retailers, must work on customer care and be friendly with them whether it comes to exchanges, refunds, or repairs,” he added. “Building strong relationships with our customers will help us navigate these challenging times and maintain their loyalty.”
Businesses Adapt with Affordable Products and Online Strategies
In response to the market shift, businesses are taking proactive steps. They are introducing a wider range of affordable products and implementing special promotions to attract budget-conscious customers. Recognizing the growing demand for convenient and cost-effective shopping, retailers are also enhancing their online presence.
Focus on Value-Driven Products for Long-Term Sustainability
“We understand the financial challenges our customers are facing this festive season,” acknowledged CAIT Kashmir. “Our focus as retailers should be on providing high-quality, budget-friendly products to ensure that everyone can enjoy the shopping without financial strain.”
While the immediate future might be characterized by a subdued market, CAIT Kashmir anticipates this trend could persist until economic conditions improve. They urge retailers to “continue innovating and offering value-driven products” to maintain consumer interest and market vitality in the long term.
