Download PDF by Dheeraj Sinha (auth.): India Reloaded: Inside India’s Resurgent Consumer Market

By Dheeraj Sinha (auth.)

Written by way of an insider, this booklet takes a serious examine the myths and contradictions surrounding India as a client marketplace, to ascertain the recent possibilities that it offers.

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The biggest mistake of mass-market thinking is its obsession with affordability without the context of aspiration. 1 23 The Trap of Mass-Market Thinking Mass-market thinking versus upgrade-market thinking Mass-Market Thinking Upgrade-Market Thinking Inspired by the bottom of the pyramid Inspired by consumer desire for upgrade "Less for less" innovation "More for less" innovation Price obsession Desirability and affordability equation High cost of reach out, low returns Value added products, better profitability One size fits all, subsidizes premium customers Opportunity for segmentation, rising premium segment Tata Nano, Maruti Suzuki, Nokia Micromax, M&M Utility Vehicles, Samsung What we need here is upgrade-market thinking.

The current model assumes that higher meaning finds relevance only as we go up the socio-economic ladder. Moreover, it has no guidelines on how to stay relevant and connected to the current discourses of the society. The current model is scared of the complications and chooses to stay away. It doesn’t believe that building social value leads to business value. In this world, business and corporate social responsibility are two separate lines in the P&L account. The new model needs to fuse the two.

That they had a six-month waiting period was one of the key aspects of the Bajaj scooter’s legend. What was possibly a supply bottleneck turned out to be a mark of popularity, and in turn a surrogate for quality for Bajaj Scooters. The principle that if 42 India Reloaded the product has such a long waiting period, it must be good holds true even today in many categories, including automotive. Incidentally, most successful automotive launches during the past years, such as the Swift DZire and Ertiga from Maruti Suzuki, the XUV5OO from Mahindra, the Duster from Renault, and the Amaze from Honda, have had a waiting period ranging from one to three months, owing to constraints at the supply end.

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