!-- Begin Web-Stat code 2.0 http -->

Wednesday, March 5, 2014

Book Review: A Never Before World- Rama Bijapurkar


BOOK REVIEW

Title:                     A Never-Before World…Tracking the evolution of consumer India
Author:                Rama Bijapurkar
Publisher:           Portfolio Penguin books India 2013
Price:                    Rs 699/-

 The Multiple Choices Of Consumer India

Rama Bijapurkar is a thought-leader on market strategy and the quirks of the Indian consumer. She makes every one of her points with relentless, reinforced logic and earnestness. This book, coming five years after her well received We are Like That Only on the same subject, charts the road ahead in the third decade after the commencement of liberal reforms in 1991.

And, by implication, runs into a wall. Our infrastructure remains a major road-block. We have 51% more cars on Mumbai roads with hardly a road added in recent memory for example. So ‘guiltless consumption’ is hampered by an ‘abysmal delivery of public goods’. Not to mention the outgrown civic infrastructure, the filth, the pollution, the garbage, the faeces. Electricity, water, transportation etc. are lagging demand, to put it mildly. Education and health services run by the Government are of the poorest quality still. To do well in India means not really needing the Government for ‘living infrastructure’.

Bijapurkar suggests that the Indian consumer is varied within ‘a never-before’ world, and therefore a standardised approach may not work best. The point is made strenuously and provokes the reader to wonder about the truth of it. It is a sad fact that uniqueness and individuality have been assaulted, trampled on and sometimes destroyed outright by the invaders and conquerors over a half a millennium of history. 

That we have such strong flavours of cultural diversity left is a tribute to our resilience and ability to survive. 
Nevertheless, much has changed. We are influenced, in recent centuries, mainly by the hybridised, Central Asian Mughal culture, and the British that came after them. The British in particular were determined to denigrate ancient Vedic and other culture as part of their imperialist ethos. Most British colonials painted it out to be obscurantist, pagan mumbo jumbo, and thought it their Christian duty to supplant it with their ideas and their language. Since these were ideals developed by The Enlightenment and the Renaissance, it didn’t do us much harm, particularly in the context of an English speaking globalisation today. This modern education worked for us to a remarkable extent and eventually backfired on the Raj because the same liberal and egalitarian principles bred into the Independence movement.

Bijapurkar however has not written this book in the context of the last five or seven hundred years. She is analysing the state of play in Indian consumer preferences at the start of the third decade since liberalisation and the choices it has thrown up. We are, she thinks at the beginning of our consumption boom as GDP levels grow, and the Indian economy is poised to become $3 trillion worth and more. The consequent discretionary spend, the impact on choices and mobility, and the quality of life will undeniably be like ‘never-before’.

She advocates creation of ‘niche differentiated brands’ arguing that ‘a small percentage of a large number is large and niches can be quite big’. Bijapurkar points out India will be a $ 3 trillion economy by 2021. It will then be one of the top five consumer markets in the world. She says ‘matching the quality of basic living, with the quality of consumer goods people have is one of the biggest needs and opportunities in India’s consumption story of the future’. But the ‘quality of basic living’ is code for infrastructure. It is an urgent prerequisite to prevent a vital mismatch. Meanwhile, Bijapurkar is crusading here for a rethink of classifications of the volume Indian population into a more sophisticated matrix than ‘middle class’ and other.

So ‘better living amenities’ will not only spur GDP but greater sophistication in demand. It is not as if some amenities have not penetrated into the hinterland along with decent brands of FMCG goods, but the density is less. The influence of satellite TV and the advertisements it carries has had an immense impact on aspirations, brand recall, demand amongst rich and poor, rural and urban people alike.

‘In a never-before way’ says Bijapurkar, ‘India is urbanizing around its small towns and villages demonstrating urban- buying patterns and preferences’.  And ‘census towns’ are becoming ‘unofficially urbanised’ in addition to the planned efforts.

The key thing for foreign marketers to do is adapt to a high volume low margin market selling many of the same aspirational products they sell in developed markets for lower volumes and higher margins. This takes a lot of relearning and acceptance, because attempts to palm off inferior branded product on a ‘exclusively for the Indian market’ basis usually meets with stern rejection by the quality hungry population. Those, like Mercedes, who began by launching discontinued old models in India as ‘appropriate’ to our road conditions, promptly lost their place to first BMW, and then Audi. We may be Indian but we are not stupid.

 (800 words)
March 5th, 2014

Gautam Mukherjee

No comments: