Barter Trade In India

With economic slowdown across gobal markets and covid breakdown in India many of well established brands faced a big challenge where companies are stucked with huge inventories lying at their warehouses. Many of those inventories belongs to FMCG goods like cosmetics, food products etc which contains fixed shelf life. Also due to fall in sales figure during this tenure companies have reduced their budget on media spents. In this difficult scenario barter is used by these brands as a emerging tool to clear of their inventories and exchange same with media promotions.
More and more businesses are accepting the idea of Barter trade. This is due to the fact that Bartering allows the exchange of goods and services through ‘trade credits’ instead of using your cash reserve. And at the same time reaching out to new customers worldwide. Openness towards Barter Trade has fuelled growing numbers of Barter Trade Exchanges.

Bartering today is not just limited to goods and commodities. Businesses are looking to barter their services and concepts as well. Bartering in India is just 10-12 percent of the total trade. But this number is expected to grow rapidly because of the current market forces. Barter is an amazing strategy to beat the cash crisis that almost every business is facing today. Nobody could have ever imagined that an ancient trade practice of Bartering can be a solution to many economic problems of today’s times.

Modern Advertising Services

The most common form of business-to-business bartering in modern economies involves the trading of advertising rights.
In these cases, one company sells its available ad space to another company in exchange for its product inventory. These can be variety of media spaces like Newspaper advertisements in regional vernaculars or National Newspapers, Television advertisements in different news or entertainment channels, internet advertisements on different OTT platforms, radio FCT’s, Hoardings or billboards or various other types of media like in cinema advertising, cab branding etc .

Bartering Product Inventory against Products Inventory or Services:
Bartering can also take place as an exchange for products with other products or services. For example if Hotel Room or a restaurant has occupancy rate of 50% than they can clear of balance 50% of rooms or restaurant space in exchange of hotel toiletries or tissue papers or other consumable which is cost to them.

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