Where are the poster boys of Indian growth story?

When we spoke about the Indian growth story, mobile and cars were the poster boys...(apart from IT of course) every month we would quote the number of new mobile users being added and that we were the fastest growing mobile market in the world. Now with the slowdown and perhaps in a category like mobile the growth will not come from new subscribers. More about the mobile story in another post some time the focus is one falling car sales…

I had written blog posts every time the sales of cars would hit a new high, (raining cars in India) so thought it was but appropriate to write about the first fall in car sales in a decade (Car sales crash first time in 10 years). The reasons for the fall in the sales include the increasing fuel prices, expectation that prices would fall, and of course the negative mindset that the consumers have got into.

My take on the sales in the car market is that, the conditions which were driving the sales of car for the last ten years have not changed much, lack of public transport, the status symbol associated with owing a four-wheeler, increased choice for the consumer. Only thing which is not working in the consumers favor is the ever increasing fuel cost but that many of us realize is part of the reality. We typically take the extremes while reacting to either a slow down or a growth, something similar to which happens in a stock market, market is at its peak, one finds small investor rushing into the market and when the market is at its lowest the small investors are typically found busy selling...

The auto market and the growth is there to stay, this a just small blip in the sales chart.

And in the meantime it might be best of times to buy a car, best deals possible are currently on offer..

Desi Brands in the Smartphone Sphere

The mobile phone market seems to be again on fire, with the players who had initially missed the bus, in terms of the shift to the smartphone making most of the noise. Today Nokia is seriously looking at making a comeback with its Lumia Series and even blackberry is trying its best. For a market observer this a pattern which keeps repeating, the market leaders sticking to their old way of doing things and more nimble competitor identifying the next shift early and capitalizing on it.

The more interesting part is what is happening with the Local brands of the likes of Micromax, Karbonn and others. These Desi Brands had an initial dream run in the value segment, with companies like Micromax becoming overnight success stories and started being counted among the world's top 10-15 handset manufacturer. Again expected, that the local players would fill up the gaps in the lower end of the market…

But when the shift occurred and consumer started moving towards smartphones, with their own app ecosystems in place, many expected the local players to roll over and die, because the smart phone domain is expected to be more technology driven and not a price-only but feature rich market place. And this did apparently happen for atleast a couple of year with not much noise or activity from their end. But they have made their comeback (for more read, http://goo.gl/DLwUc), with Micromax in the second position in the market and Karbonn in the fifth place. I find this both interesting as well as heartening that these firms have been able to make a comeback, as they are supposedly the ones who are able to customize more...

I think the learning is that a value conscious segment exist in all markets, especially in the Indian market.

Auto rickshaw in Bangalore

I think many of you when you see the title of the post will start-off with a lot of bad experiences with auto drivers in Bangalore. Many years back I use to feel that Chennai auto guys were the worst , but in the last few years the Bangalore fellows seem to have caught up with them. But this post is not about a bad experience, for a change it is about a good one !!!!!

A few months back when I was travelling I came across this auto driver (in the photo) who had a small TV installed inside the auto, meant for the passengers. He would switch it on as soon as you get on and also engage in explaining the fact that he had put it for the passengers and ensure that you enjoy the experience. Now people like these auto drivers are an exception than a rule, but then some of these kind are also around and we tend to ignore them. I thought I should do my bit by sharing my positive experience...

Rural Marketing Videos

I came across a set of videos on rural marketing by CNBC TV 18 Story Board. They are little dated - 2009, but then in India it is very difficult to get anything updated on rural marketing,

Is "Fear of Bacteria" under threat

I think the last decade has seen the marketers capitalize on our fear of bacteria. The USP , if I were to use the term has been used by all from the toilet cleaners to the soaps to toothpaste guys. And this has been helping the sale of these products. But if suppose some one were to turn the concept on it's head and tell the consumers that some amount of bacteria (even the bad ones) is essential for healthy growth of children the fear of bacteria will come under threat and the marketers would be a worried lot.

This theory is called "hygiene hypothesis", which essentially says that diseases affect more individuals in the modern world where hygiene is given utmost importance.The exposure of bacteria early on helps develop a better immune system. But then what happens to the "100% Bacteria Free" proposition...

Technology Vs the Cab Driver

I just thought of sharing my recent experience of hiring a Meru Cab and the issues of technology versus human interface. As with many other experiences which I have shared earlier, this also is not one the best experiences which I have had, but...

To start with the positives of the experience, I was using the same number from which I had booked the cab earlier so I was immediately addressed as Rajesh, and asked where I want the pick-up from. I had used the service from two different locations, and once I told the location, the other details were not asked for, as it was already there in the system. The messages on the mobile followed and the cab also arrived 20 mins prior to the pick-up time. So all was fine...

Now comes the driver, during most part of journey he was busy on his mobile phone talking to some one and when he was not on the mobile, he was over speeding with the system shouting that you are exceeding the speed limit – “Please Slow Down”. This must have happened atleast 20 times during the 40 km journey. Then at the end he was very reluctant in giving the change back as if he had earned an extra tip for the experience he had provided. 

Not that I have had not had worse experiences with drivers earlier, being from Bangalore and traveled in the city auto rickshaws (only Chennai auto guys are worse). But then for me the advantage which technology had given was lost by the human interface, this was what set me thinking about how important it is to sensitize and train the human element in the chain.

Rural Retail

Mobile rural retailer in MP...

Interesting Print Ad

Saw a good print ad in the morning newspaper, thought of sharing it, looking at the limited life of the print ads...

Standard Pack Sizes : Impact on Price Points..

I was reading a newspaper article on a new regulation wherein the Government has decided to reintroduce standard pack sizes for several items of everyday household consumption. The argument is that companies have been reducing the quantity of the product without changing the price of the product, which is not in the interest of the consumer. A consumer would not check the weight of a biscuit pack every time he buys. The non-standard pack size made it easier as they would keep reducing the quantity being sold without changing the price.


But one of the main reasons why companies have been reducing the quantity (without touching the pricing) is that in many categories especially biscuits, chocolates, chips… they are trying to hold on to certain price-points which the consumers and retailers are comfortable with. Like in the biscuits business it is the Rs 5 which is very critical and the SKU at that price point tends to be the volume driver for many brands. The moment the regulation of standard sizes is introduced many of these brands will have to vacate that price slot and move higher or lower price points. The other reason reducing the quantity is to indirectly pass on the price hike to the consumer.

I feel that this regulation is not really needed for, on two accounts, one is the assumption that consumers are not smart to realize the change in the product quantity. He might get fooled once, and then he would realize & factor- in his next purchase. The second reason is that the convenience which certain price points give, both to the retailer as well as the consumer; imagine giving 7.25 for a 100 gm biscuit packet..

Too Much of Steve Jobs??

Missing out is Pepsi to Apple.....