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RE: [IndiaStrategy-ThinkTank] 'Califoniazation of Needs' + Bill G ates in India

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  • Amit.Kohli@aventis.com
    I believe Indian market is at an inflection point where either we could go the way of I don t care if you do not send me any more new products......because I
    Message 1 of 1 , Dec 4, 2002
      I believe Indian market is at an inflection point where either we could go
      the way of

      I don't care if you do not send me any more new products......because I
      shall get them anyhow (piracy...improvisation!!!)
      Onset a change process where our society starts rewarding the innovators.

      Historically, Indians have displayed immense imagination in building on/
      improvising conceptual frameworks, products, processes etc. etc....In Net
      total we have been great IMPROVISERS (JUGADUU)... I cannot recollect much
      innovation (from Cinema ...to Products... to Processes)..though there have
      been some Innovations e.g. the much touted Bombay dabbawallah systems...but
      not a great deal.

      But I believe the process moves in stages ...

      Our generation is just getting aware of what lies beyond... what happens if
      you are an innovator...What repercussions does piracy have on society in
      general and its evolution. Just by sheer numbers... educated (under
      education) young India (which I guess forms at least 45% of the country)
      once totally aware..would start resulting in being a BIG BIG market. Our law
      system is painful hence Government role in bringing down piracy .. could be

      In my opinion this limits innovative companies like Microsoft to a few
      options -

      1. wait for regulatory environment to change/ paradigm shift !!!
      2. start creating awareness early enough - educate.... Partly happening
      3. Involve the community - Which Microsoft is already doing...

      I believe that even if Microsoft gets half of the current users of Microsoft
      products at home to shift to buy once...only once on next decade... That
      would justify any kind of strategy/ investment they are making now in

      And Indian customer ....... the rich and affluent one which forms 5% of
      Indian population i.e. 50 million which is the size of population of smaller
      European countries.... doesn't care....

      I was in India last year and saw someone purchasing a Grover Wine (crappy
      bangalore based wine)for 400 INR.. Jesus i.e. 10EUR.. you could get a Top
      average wine for that.. and believe me tastes much better...

      Hence, Indian consumer is a species in its own self.. what matters is how
      you are selling to him... He may haggle for a 50p discount on Gobhi in
      market and might just go bang ahead and purchase a Rolex at a basic
      discount.. not really haggling...If Microsoft would do a corporate deal by
      offering major discounts and allowing the companies to pay for personal
      purchase of software packages of employees.. they would definitely manage to
      sell more than they do today !! (phokat mein hai... legal hai...so grab it)

      I believe someone from marketing in this group should shed some light on how
      Indian consumer in different profiles and pocket sizes is expected to
      evolve....and how are different kind of product companies targeting it.


      I am supply chain manager for North Europe for Aventis Pharma based in

      -----Original Message-----
      From: Sridhar P.A.V. [mailto:SRIDHARPA@...]
      Sent: 04 December 2002 08:51
      To: IndiaStrategy-ThinkTank@...
      Subject: RE: [IndiaStrategy-ThinkTank] 'Califoniazation of Needs' + Bill
      Gates in India

      I dont think what has been said below is true. Microsoft did not become the
      compny it is today by selling 'second grade shoddy stolen' products. I dont
      believe any company, not withstanding its marketing muscle or acumen, can
      become one of the most valuable companies on Earth unless it has a value
      proposition to offer to its customers. It after all statrted off as just
      another startup operating from a single room.

      As for demanding Value For Money (VFM), there is absolutely nothing wrong
      with that. However, I dont think the issue in India is regarding the VFM
      proposition of Microsoft or for that matter any other software. The issue
      here is one of Intellectual Property Rights. Piracy (of all types..not
      limited to software alone) is rampant in India and ppl do not think twice
      before illegally making copies of software and distributing it and using it.
      One of the reasons for this could be the Product Pricing itself.

      In my experience of dealing with vendors, I have seen that there is usually
      a special pricing for the Indian subcontinent. The prices are much lower
      than what is charged for the same software in other parts of the globe. This
      may not be true of all vendors and I am not aware of Microsoft's pricing for
      India. Despite this, we find that most corporations, let alone individuals,
      resort to piracy and do not think twice about using pirated software.

      And if some ppl feel that Microsoft products are not VFM, then there
      definitely are alternatives available. The most common example being LINUX
      in the case of Operating Systems. Surely there is no one forcing ppl to use

      About me :
      I am Sridhar working with Infosys Technologies Ltd. Am an alumni of MDI
      Gurgaon (Class of 98).

      -----Original Message-----
      From: guruindermohan singhchhina [mailto:guruindermohan@...]
      Sent: Wednesday, December 04, 2002 1:21 PM
      To: IndiaStrategy-ThinkTank@...
      Subject: Re: [IndiaStrategy-ThinkTank] 'Califoniazation of Needs' + Bill
      Gates in India

      all these three stories converge at one thing--that indian customers demand
      value for money
      an acquaintance of mine was haggling in some shopping mall in canada when he

      was asked whether he was a jew(supposedly an insult but on the other hand
      sharp business acumen)
      as for microsoft it has to understand that it is high time it starts selling

      on the basis of product strength rather than solely selling some second
      grade shoddy stolen(remember gui, internet explorer) products on the basis
      of its so called marketing abilities(bundling et al)
      it is not only india but the entire global market where in microsoft has to
      change its way of doing business
      sorry i forgot to introduce myself
      i m guru inder working as a project appraisal officer in Power Finance

      >From: "rajeev_mahajan_76" <mahajan_rajeev@...>
      >Reply-To: IndiaStrategy-ThinkTank@...
      >To: IndiaStrategy-ThinkTank@...
      >Subject: [IndiaStrategy-ThinkTank] 'Califoniazation of Needs' + Bill Gates
      >in India
      >Date: Wed, 04 Dec 2002 07:10:32 -0000
      >Hi there....
      >thanx for that piece sandeep....
      >the piece brings us to an important point:
      >affordability is a very big issue in the indian marketplace and will
      >continue to be so for at least the next 50 odd years. however, the
      >indian consumer is savvy and demands value-for-money and demands the
      >same kind of quality products and services available globally.
      >recall kenichi ohmae's article in the HBR where he postulated that
      >consumers in the Triad - Japan, Europe and North America demand the
      >same services and products that people in California consume - he
      >called this phenomena the 'Califoniazation of Needs'
      >the indian consumers may lag behind by say 5-6 years, but our market
      >too is increasingly seeing such a phenomenon at work - hence you
      >would see the profliferation of the Internet, mobile telephony, and
      >say even McDonald's
      >That doesnt in anyway imply that Indians are becoming spend-thrifts.
      >here i recall an interview of ck prahlad where he said that though
      >high volume packs of say shampoos may be cheaper on a per unit basis,
      >the rural indian consumer still prefers using sachets coz that way
      >she can control the actual usage of the product. now thats a very
      >important observation.
      >talking of bill gates and india - the real threat to microsoft comes
      >from linux, which is actually free. already MP has indicated that it
      >is going introduce linux based systems in the state. kerala proposes
      >to enact a legislation to first explore the possibility of procuring
      >free software before buying licensed software. other states might
      >also follow suit. so what could microsoft do to ensure that it
      >doesn't lose its grip in the indian market? any views from the group?

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