How Digital Transactions Enable Ethical Business Practices?
How Digital Transactions Enable Ethical Business Practices?

India is a country where over 95% of the total transactions are paid for in cash. While various initiatives taken by the government are slowly moving us towards a Digital India, we have a long way to go to join the ranks of cashless economies like Sweden, Finland, and Canada. There are still a lot of people who are more comfortable reaching out for cash in our wallet to make payments – no matter how big or small.

Problems with Cash

Yes, it is easy to give your children cash to pay their school fees. Yes, it is convenient to offer cash at the supermarket. Yes, Cash on Delivery might be the most suitable online shopping payment option for the sites where you are not sure about the delivery of products. But do you know the kind of challenges cash transactions present? Let’s have a look:

  • Cash is anonymous: When you deal in cash, there is no accountability. In the absence of appropriate controls and measures in place (which generally is the case), it gets really difficult to identify the source of a transaction and to track it through the cycle.
  • Fraud is easy: The amount of fake money in circulation is unimaginable – in 2017 alone, 762,072 fake notes were detected. Counterfeit scams are mushrooming, and for the common man, it is not easy to tell the difference.
  • Risk of theft: No matter how careful you are with your money, there is always the risk of theft and robbery. So, whether you’ve just withdrawn money from the ATM, or you’re on your way to deposit it at the bank, you always have to be vigilant.
  • Difficult to track: In spite of all measures you take to keep track of the money in your wallet, it is easy to lose count, misplace cash, or mix up denominations. How you keep account of loose cash in your wallet?
  • Black market: Cash transactions are the biggest contributors to the black market. They are the reason for the illegal sale of goods, corruption, inflated prices, and tax evasions.

Benefits of Elimination of Cash

Eliminating cash and moving towards a digital economy brings the transparency needed in the system. The benefits of cash elimination are manifold:

  • Monitoring of business dealings becomes easy and convenient (transactions of more than 3 lakh registered companies are under the radar by the government)
  • Right beneficiaries get the right entitlements (the government makes a direct transfer of Rs.74,000 crores to the financial accounts of 35 crore beneficiaries annually)
  • More tax gets collected (thanks to demonetisation, in 2017, there was an increase of 24.7% in tax returns filed)
  • E-governance becomes a breeze (about 52.4 crore unique Aadhaar numbers have been linked to 73.62 crore accounts)
  • Money laundering and the black market gets minimized (more than 37,000 shell companies engaging in black money and hawala transactions have been identified) 

How Digital Transactions AreHelping Curb Fraudulent Transactions

The Micro, Small and Medium Enterprises (MSME) sector in India has primarily operated offline, with a majority of transactions happening in cash.Cash transactions have caused a host of problems for MSMEs including delayed payments, untimely credit, and issues with getting loans. However, now, especially post demonetisation, MSMEs are left with no option but to turn digital. According to reports, as many as 41% of MSMEs said their clients have moved to electronic payments since demonetisation. Electronic payments are now enabling them to reach wider geographies which would otherwise remain outside their scope. As social selling picks up steam, MSMEs have also started operating their businesses through Facebook, Twitter, and other social platforms. Having a digital presence is helping MSMEs to expand their markets, safely and quickly process transactions, improve transparency, and enable ethical and legitimate record keeping. 


People prefer cash because it is quick, easy, and convenient. If the digital payment options provide all these benefits, consumers dependence on cash will start to diminish.Countries like Sweden prove that cash-free living is not only beneficial but also desirable. Curbing of fraudulent cash transactions boosts the economic growth of the country, and I believe, as Indians, we are happy to contribute towards that.

The article has been penned down by Jose Thatti, CEO, and Co-founder, Phi Commerce


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D2C Impact on Natural Skincare Sales: Exploring How Direct-To-Consumer Models Affect The Sales Of Natural Skincare, Emphasising Engagement
D2C Impact on Natural Skincare Sales: Exploring How Direct-To-Consumer Models Affect The Sales Of Natural Skincare, Emphasising Engagement

In the ever-changing landscape of the skincare industry, the rise of Direct-to-Consumer (D2C) models has been a transformative force, reshaping the way natural skincare products are sold and experienced. The fascinating world of  (D2C) marketing has had a profound impact on natural skincare sales, centered around the key element of customer engagement.

Lifting The Curtain: Enhanced Transparency: Transparency and sustainability have become critical for conscious consumers seeking for natural skincare solutions. D2C brands, equipped with the ability to communicate directly with their target audience, have the opportunity to showcase their meticulous sourcing practices, manufacturing ethics, and commitment to sustainability. This not only aligns with the values of environmentally conscious consumers but also develops a sense of trust and authenticity.

Tailoring Customer’s Skincare Journeys: D2C models build direct communication channels, allowing brands to offer their customers a personalized and customized experience. Through engaging interactions, brands gain insight into individual preferences, skin concerns, and feedback. This personal touch fosters a sense of connection, converting a transaction into a relationship. The skincare journey is transformed into a one-of-a-kind and personalized experience that resonates strongly with customers.

Building A Skincare Community: D2C brands thrive on community building, cultivating an environment where customers feel valued and connected. Exclusive benefits, early access to new products, special discounts, and loyalty rewards programs are the foundation of establishing a skincare community. This increases customer retention and also converts customers into brand advocates, which starts a chain reaction of positive word-of-mouth marketing.

Overcoming Geographical Barriers: Natural skincare brands that use direct-to-consumer methods are no longer constrained by traditional retail limitations. Brands can reach a broader audience, including those in remote areas, by moving beyond physical stores towards online platforms. The virtual shelf space has no boundaries, making it accessible to all those looking for high-quality natural skincare solutions.

Data-Driven Marketing:  In the age of analytics, direct-to-consumer brands use data to understand the nuances of customer preferences, behaviors, and purchasing patterns. This wealth of data is an extremely effective tool for targeted advertising and strategic marketing. Brands can create compelling campaigns that resonate with their customers and foster a deeper connection by acquiring a detailed understanding of their audience.

The Backbone of Brand Credibility: Trust is the backbone of successful direct-to-consumer natural skincare sales. Positive feedback, customer loyalty, and word-of-mouth recommendations increase a brand's credibility. When customers believe in the efficacy and quality of the products, trust increases. D2C models strengthen trust by promoting direct communication and community engagement, laying the foundation for long-term success.

The Online Advantage Offers Maximum Reach at Lower Prices: Online platforms and targeted marketing strategies enable D2C brands to reach a wide range of demographics and geographic locations. The low cost of online channels allows for maximum visibility, propelling brands into untapped markets and increasing market reach while eliminating the constraints of traditional retail overheads.

Real-Time Feedback Loops: Direct sales channels allow brands to create real-time feedback loops with their customers. This process of continual improvement enables brands to improve their products and services in response to community preferences and needs. The dialogue between brand and consumer grows into a dynamic collaboration, ensuring that skincare offerings evolve according to customer expectations.

Subscription Services: Subscription models are emerging as a strategic play for direct-to-consumer natural skincare brands. Brands can secure a steady stream of revenue by offering subscription services, as customers commit to receiving products regularly. This not only ensures consistent sales and cash flow but also strengthens the brand's relationship with its subscribers, ultimately leading to a loyal customer base.

Social Media Influence: Influencers have a significant influence on consumers in today's social media age. D2C natural skincare brands can tap into this power by collaborating with influencers who authentically represent their brand's values. User-generated content (UGC) which demonstrates real people using the brand's products is valuable social proof. Utilizing this content across social media platforms and the brand's website creates a compelling narrative that appeals to potential customers.

Conclusion: Direct-to-consumer (D2C) models have a significant impact on natural skincare sales. Enhanced transparency, personalized experiences, community building, increased accessibility, data-driven marketing, trust-building, online reach, feedback loops, subscription services, and social media influence all contribute to a shift in the way consumers perceive and interact with natural skincare brands. As brands navigate this transformative landscape, the key is to harness the power of direct-to-consumer models to not only sell products but also build long-term relationships with a community of skincare enthusiasts. The future of natural skincare sales is more than just a transaction; it's an immersive experience in which brands and consumers interact to create a narrative of beauty, authenticity, and sustainability.


Authored By


Himanshu Sharma, Co-founder & Managing Director, ORGATRE


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