Salesmen of uber luxury products now find it a tough to cajole the customers to reveal their permanent account number (PAN) details.
Looking at the results so far, it looks seemingly difficult to reach the monthly targets; further more, they seem to be losing out on their regular customers.
According to the Times of India, “The Indian luxury market has been pegged at Rs. 16,300 crore in 2015 by market research firm Euromonitor and is expected to touch Rs.39,000 crore by 2020 with an annual growth rate of 19 per cent.
The admission of PAN details has been made absolutely mandatory by the government over the transactions of Rs. 2 lakhs in quest to shell out all the black money and get the corruption levels down.
However, its quite evident from the statistics that this drastic, financial move has indeed moved all the wealthy buyers from buying luxury products which mainly include, handbags, watches, and writing instruments.
“Our bags start at Rs. 2 lakh. Sales at our store have been hit badly because of our regular customers have stopped coming.” said a senior executive of a French luxury brand. he further adds to this by saying that many would prefer paying by cash, who will now prefer shopping abroad.
“We have taken hit of several lakhs of rupees over the last few days but have not been able to figure out a way around the problem.” said an executive at the store.
He further explains the plight of the company by saying, “The other say, a lady who had come to buy a bag said she wouldn’t risk getting her husband into trouble by furnishing his PAN card details. Eventually, she walked out without buying anything.”
The CEO of the Genesis Group, Nikhil Mehra, who is the JV partner for Canali, Burberry and Villeroy and Boch and which also has the marketing and distribution arrangements for many haute couture, like Jimmy Choo, Giorgio Armani, Emporio Armani and Tumi said, “However for most of our brands it is not a challenge because prices are within the Rs. 2 lakh limit.”
Tags: Indian Government PAN PAN rule
