“India Rising, Bharat Awaits…” – NCAER and The Economic Times share our concern

Devangshu Dutta

February 7, 2008

An article by Shailesh Dobhal and Bhanu Pande in The Economic Times today refers to a growing inequality of income in India. (“India Rising, Bharat awaits for the trickle to turn flood”)

The change for all of urban India is reported to be 15%, which is quite visible, especially in the larger cities where the change is possibly greater. What is worrying is that even in rural India the change is 13%.

And these figures are for 2004-05, from a report authored by NCAER’s Dr. Rajesh Shukla. My guess is that the difference would be even higher now, 3 years later.

Obviously at a personal level this should concern all. Each person is part of the ecosystem – there is only so long one can hide in ivory towers behind tall walls and locked gates. We are most secure and content when our neighbour is secure and content. Stark disparities that grow even more stark are not a way to develop security.

However, one might ask, why should business managers in consumer goods and retail sectors concern themselves with this phenomenon from a business perspective?

The answer should be self-evident – as shared in a presentation at the Confederation of Indian Industry (CII) National Retail Summit in 2006 – a retailer can grow its market by encouraging the development of smaller enterprises, especially those in lower income areas. As these enterprises grow, so does prosperity and available income.

“Grow your wealth by growing someone else’s.” That may seem like an odd notion. But think – is it so odd?

In May 2007 Arun Maira, Chairman of the Boston Consulting Group’s business in India, presented scenarios that were developed in an exercise a few years ago, about the possible developmental trajectories of India. These include:

  • “Atakta Bharat (India Stuck)” described as ‘Buffalos Wallowing’,

  • “Bollyworld” (the crazy mix of glamour and tragedy) described in two parts as ‘Peacocks Strutting, Birds Scrambling’ and ‘Tigers Growling, Wolves Prowling’ and

  • “Pahale India” (India First), subtitled Fireflies Arising.

Here’s his very thought-provoking article (India: Many Million Fireflies Now) that is well worth a read.

Organized Retail and Instant Noodles!!!

Sharmila Katre

February 6, 2008

As a working wife and mother who wants to run her home as competently as she runs her business, the advent of ‘organized’ retail, super markets and well formatted MBO’s seemed like an answer to one’s prayers. Yes, this was certainly what I dreamt of whenever I raced against the clock to get the month’s grocery shopping done in time to get home to cook dinner; or when the family had to subsist on instant noodles because picking up one’s dry rations and veggies from different locations at the end of a working day didn’t work out because of time and logistic constraints.

‘Organized’ retail is the answer to everyone’s prayers – the consumer and the producer…..or is it?

Products sit beautifully packaged on shelves which are easy to access, saying – BUY ME!!! Or BUY ME and get another like me free (oops, sorry! The free stock just ran out!)! Today I whiz around well lit and well laid out stores picking up products I need, and also don’t need, in double quick time to end up in a traffic jam at the cash counter!! And while I stand there watching the harried sales clerk struggle with the operation of a temperamental bar-code reader and the rush of shoppers waiting their turn to pay, I begin to notice (and miss) the many differences in my shopping experiences of the bygone days. I miss the ‘soft’ skills of the friendly neighborhood Lalaji who would notice and gently point out deviances to one’s standard shopping list; his mammoth memory bank that didn’t require him to cross check prices of unmarked/bar-coded products; his verbal promotion of new products; his ‘home delivery’ service of products that may not be in stock ……and all in all the complete warm, social and informative shopping experience.

For ‘organized’ retail in India to become an indispensable part of the shopping needs of the emerging segment of the urban Indian working women, retailers need to address many issues that go beyond large stylish stores, slick visual merchandising and bargains. Store planograms need to stock merchandise as per an Indian housewife shopping list which follows a pattern of ‘Dal’, ‘chawal’, ‘atta’, ‘tail’, ‘masala’…..rather than the western format which starts off with breakfast foods and so on. Shopping for Groceries in India follows a monthly pattern rather than a weekly pattern, and this needs to be taken into account while merchandise planning and stocking is done, so that stores are adequately and correctly stocked. Most importantly, deployment and training of staff needs to address peak and trough periods of the store traffic, and the ability to deal with client claims and returns efficiently.

Till then, either which ways, instant noodles will be the standard family fare on the nights that ‘mom’ goes grocery shopping!

Tippy Tippy Tap – What “product” do you want?

Tarang Gautam Saxena

February 6, 2008

A few days back I met a friend, a mother of a six year old and a primary school teacher by choice (so that she can be “gainfully occupied”!). We exchanged the woes of being a working woman, and she exclaimed that she was planning to begin getting her lunch and dinner organized through a “dabbawala”. This would free up the time spent on “non productive” chores of buying monthly grocery, the weekly veggies and stocking up to spend on “more important” activities in life.

No, she is not necessarily representative of a particular consumer segment, nor can one say at this stage that there is a significant number of such women in our society that “dabbawalas” should sit up and take notice of, who would want to give up the pleasures of browsing, shopping and bargaining and then let go of the appreciation that follows conjuring up the delicious cuisines.

But it is does make one think about how our changing lifestyle and attitudes are changing our needs and wants (and hence the desired products and services).

It makes one want to gaze into the crystal ball and see what promise does the changing social fabric of India hold for the market of products like pre-cut vegetables, or ready to-eat food, what about products like sanitized wipes. What does it mean for the potential of services like that of a qualified nanny or a temporary baby-sitter, or house cleaning services, or professional laundry services or dial-a-cab?

What would you (as a consumer or a marketer) like to add to the wish-list?

Brand Building – Context, Consistency and Constancy (Time) – LEGO® Turns 50

Devangshu Dutta

January 29, 2008

From a simple tower to human-sized figures of cartoon characters – we’ve seen a whole range of creative expression using a simple plastic brick. (Well, to be accurate, a wide variety of plastic bricks – but all developed around the same principle.)

An icon in a child’s world, the LEGO ® brick has just turned 50-years young.

According to the company, “there are actually more than 900 million different ways of combining six eight-stud bricks of the same colour.” Ample room for creativity!

The company itself is about 75 years old, and was named LEGO after the founder Ole Kirk Christiansen put two Danish words together – “Leg godt” – meaning “play well”.

The company has had its ups and downs, the brand has been extended to include other product / service offerings, and the group also includes other brands today. But the power of the simple LEGO brick lives on, even in this wired (or increasingly wireless) world.

The time the brand has been around just re-emphasised the point about consistency and time being very important building blocks for brands.

“Play Well!”

CSR – Philanthropy or Empowerment

Sharmila Katre

January 28, 2008

We’ve been discussing Corporate Social Responsibility (CSR) and whether its implications (and need) is fully appreciated by businesses.

A couple of years ago I did a project with the weavers of Chanderi and it was a good reality check of the India that struggles to live behind the facade that the world thinks real India is. India really isn’t only about Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, or Jaipur, Jodhpur, Agra for that matter. Neither is it about the stage set villages with its token computer/cyber point dressed up for visits of foreign heads of state. The potential to develop an economically sound India actually lies in its rural areas, in its cottage industries, in the small scale businesses of the unorganized sectors. The talent, the pride, the dignity of human life, the shrewd and competent business brain all exists there, but need to be nurtured and developed and most importantly need to be given a fair hearing and chance. Rural India is not looking for charity or ‘assistance’ – it is looking for empowerment. Unfortunately most of us don’t understand the difference. Corporate Social Responsibility is about empowerment, and does not mean ‘giving’ but ‘encouraging, developing, nurturing and sustaining’. CSR practiced in its truest sense would be a ‘win-win’ for both the buyers and the sellers in a given business environment.

With the growth of consumerism and wealth in urban India, businesses must realize that community awareness and service is not an option but a requirement. CSR can no longer be a sub-department of the personnel and HR division of the company. There is need for the ownership of CSR at a much higher level, on par with all other activities and decisions that drive the business. Corporate activism must be sustainable and accepted as a valuable change agent of today’s business environment. Corporate Social responsibility must have a much broader implication in modern India and reduce dependency on the government for social change.

Empowerment and concern for the society is often misunderstood as socialism. However one must realize that a capitalist economy only thrives when every citizen is a contributor and a participant in it and has the opportunity to succeed. As a recent example, ITC’s e-Choupal has demonstrated the success of such a concept in the current business environment, as did the success of Amul and Mother Dairy co-operative movement of the pre ‘CSR’ era of Indian business.

And yet, there is so much more to be achieved.