It amazes me how senior managers of world’s largest corporations sometimes talk and think. Recently I was visiting a leading software company on the pacific coast and was talking to one of their senior managers responsible for gaming. He said that their pricing strategy in India failed. “We were trying to sell these consoles at the same price that we sell in US, at around $250”. In another visit to one of the largest computer manufacturing companies, a senior executive said, “One of the things that we are battling with is to find the right channel to sell thru in India”.
When I meet such people, I really feel sorry for them. It is not that they are not getting answers to their questions, but the fact is they are chasing the wrong questions. Chew on this…
Last year, of all the motorcycles that were sold in India, more than half of them were sold in rural. The cheapest motorcycle sold in the Indian market place is priced around Rs. 35,000 or $700 at today’s exchange rates. Rural farmer or trader has realized the value of owning a motorcycle. He understands that a motorcycle helps him satisfy the needs of transportation given the lack of good public transportation. Other than that it helps him in his business. Occasionally, he drives to the nearby town 30 miles away and loads it with sometimes close to a ton of products, say seeds and fodder. While he is in town, he buys some toys for his kids something to please his wife and then fills gas in his tank and is back home by evening. On some Sundays, if he has time and money, he loads his family on the motorcycle and they go for a movie. With an annual income of around Rs.100,000 ($2000), he took a loan and invested in a motorcycle as he understands that it serves as means of transportation primarily but also helps him in his business needs and sometimes fulfils his needs of entertainment.
A computer comes at $500. Instead of worrying about which channel to use to sell a computer, executives should worry about how to make a computer as important as, let’s say a motorcycle, for a rural Indian. If you have cracked that, then you are selling as many computers in rural India as you sell in United States of America. Like a motorcycle serves the need for transportation, a computer serves the need for information and communication. If the same person in the above example knew that instead of travelling 30 miles east, if he travelled 40 miles north, he would get a better price on seeds and save $10 in the process, he would be very grateful. If he knew that a computer can help him get this information, then it turns out to be as useful as a motorcycle. In stead of burning gas and spending on four tickets to watch a movie, he could watch it at home with his family renting a DVD, satisfying the need of entertainment, at a much lesser price.
I don’t buy the poor infrastructure logic that gets raised each time you talk about computers in rural India. The reason that motorcycle prospered is precisely because of poor infrastructure and public transport. If there were a bus every 20 minutes to a nearby town, why would you need a motorcycle? If the town was 3 miles and not 30 miles away, why would you need a motorcycle? Computers will work and should work despite poor infrastructure. In fact, that is the reason for success not failure.
If the farmer drives 30 miles of pot holed roads to reach the nearest town to fill gas in his tank, he could travel 10 miles to charge the battery of his computer during times when he needs it and there is no power! If he takes a loan for $700 product, he could for a $500 one. These obstacles can be overcome, if he sees the need.
Have the corporations been able to ‘sell’ the need before selling the product or struggling to find channels? No matter how rich an Indian is, he would scorn if his child asked for a $250 video game as an Indian parent has not been ‘sold’ to the idea of a video game. Understandably so. The fact that some video-games do improve your child’s lateral thinking, team building and leadership skill, has not been communicated. The fact that video games could be great family times together and perhaps one of the few ways a father and teen aged son can have uninhibited interaction, has not been sold. Forget video games, technology firms have not sold the idea of internet and computers as a result some Indian parents scorn net browsing as well. This may strike you as odd, but majority of Indians are buying computers not because they need it, but because the other family has it. (As happened with mobile phones initially) But if the need was sold, people would buy in hordes. One could argue that mobile phone companies never sold the need. But then the real revolution in mobile phones happened in India only when Reliance offered them at Rs.500 ($10). Till then it was still a top 5% population product.
Computers are not selling for Rs.500 or even Rs.5000, at least not in the near future. The issue here is not the price as demonstrated above. If a farmer can afford a $700 product, he can afford a $500 one, only if he sees the need.
Folks, there is money to be made at the bottom of the pyramid.
Thursday, November 20, 2008
10 days in Italy
Though we had thought of visiting Italy long ago, in between we were in two minds. We were not sure whether we would enjoy Italy per se since it was too ‘artistic’ and neither of us understood art. Plus we are not the typical ‘museum visitors’ and have a short attention span for such places. And Italy was all about museums and galleries and art and history. Were we making the right choice?
On the 8th day while hiking from Monterosso to Veranzza I told Rupali, “You know, I think this trip has been worth the time, money, effort and everything else that made it possible”. Our itinerary included Rome, Florence, Venice and Chinque Terre (Veranzza). Here are a few highlights of the trip:
• Rick Steve’s guide books - This man knows the region inside out and our travel philosophy matches his. His guide books were so good that we did not waste time enquiring in a non-English speaking country or waiting in queues. They explain art and history interestingly in easy to follow language, making our visits to museums and galleries involving and worthwhile. We knew exactly where to spend time and what to skip and enjoyed this tour without any tour guide, just his books, quite economically.
• Borghese Gallery – By far the best gallery/museum from our perspective. We have this ‘wow’ factor that we attribute to things that just make us spell bound. Snorkeling in Hawaii, a night spent in Jaiselmer desert, Gurudongmar lake in Sikkim are examples of what we felt as ‘wow’ experiences. Among the places we have visited, we typically come across one or two such ‘wow’ experiences in a two week tour. Two hour Borghese gallery tour itself had two such experiences (three for Rupali). These were three marble master-pieces - Venus Victrix ; The Rape of Proserpina; and Apollo and Daphne.
In Venus Victrix, Pauline Bonaparte, (sister of Napoleon) posed full monty. One can see the creases formed and the dent made when upholstery gets strained as someone sits on a sofa or a couch. The folds that occur on the fabric that one has draped as one sits is all finely detailed in this marble piece which has all the imagination and finesse.
In Rape of Proserpina, you can see Pluto’s (her abductor) fingers sink into the flesh of his victim, Proserpina. Her lips are slightly opened, as if she were screaming and begging for help, while delicately crafted marble tears roll down her eyes look as though they are literally dripping down her face. Pluto’s muscular and Proserpina’s supple skins show how a strong marble stone is a slave to a great artist.
In Apollo and Daphne, Apollo pleads with Daphne to fulfill his desire while she, repulsed by the idea, begins to flee. Immediately, her skin turns to a tree. Walking around the sculpture gives an impression of the metamorphosis taking place capturing Daphne's transformation to a tree with intense emotion and drama by portraying the different stages of her changes.
These three marble sculptures are so finely done that you are absolutely amazed at the artist’s imagination and skill to turn marble in such supple forms. These pieces of art and more such we saw in Italy underscore the point that a sculptor not only needs the strength to cut the marble but also the skill to get it to form.
• Chinque Terre - Chinque means five and Terre means villages. This place is a cluster of five villages, nestled on the Ligurian Sea. What is funny about this place that it is so out of regular Italian touristy spots that only two types of tourists can be seen here – the locals and Rick Steve’s readers. After so much of art, culture and history absorption, Chinque Terre was a relief. Pure natural beauty, lovely food and relaxed ambiance made up our last two days in Italy seem like a great desert after a wonderful meal. Our room, perched on the top of a hill had an amazing sea view. The terrace on top of it, though difficult to maneuver, was a treat with a 360 degree view of the village and the sea.
• St. Peter’s Basilica - St. Peter is considered as the first Pope. He was one of Jesus’ first disciples and given special authority. His tomb rests under this church (basilica). Another wow experience. Calling it gigantic would be modest. It can accommodate 60,000 people and runs two by one football fields in dimension. The height from the center of the dome to the base is itself more than one football field. Letterings on top from the New Testament that run across the periphery of the basilica are seven feet in height. Dozens of marble sculptures inside measure 15 to 21 feet. Not only in size, the basilica is precise even when it comes to geometrical symmetry.
• Dueling Orchestras of Venice - Why Venice is called a romantic city puzzled us. It is too crowded for seekers of privacy, the canals stink at places, food is not particularly great and gondoliers, contrary to popular opinion, seldom sing. There is one exception however. The orchestras at the St. Mark’s square. Each restaurant has an orchestra with 4-5 musicians with violin generally being the lead instrument. Restaurants are juxtaposed to each other and they set the tables on the square. One can either sit on a table and splurge on coffee or wine or just stand on the square and watch them play free of cost. They are coined ‘dueling’ orchestras probably because one plays while the other rests, though they are not actually dueling. Though we had as much knowledge about European music as you may about rocket science, this was a treat. If you understand music, you don’t need to understand the language. The tunes that they were playing were so sweet and rhythmic that anyone can follow, indulge and enjoy. Some of those standing, start dancing to the tunes and those sitting extend and hold hands or lean on shoulders. The experience, romantic, is second to none. On both the nights that we were in Venice, we spent time listening to the orchestras. The only European tune that I am familiar with is the one played in the movie Godfather. I was hoping that they would play it. They did not in the first night. And on the second when we were just about to leave, they played it. It was enigmatic.
Italy is recommended to anyone who wants to have a wonderful holiday.
On the 8th day while hiking from Monterosso to Veranzza I told Rupali, “You know, I think this trip has been worth the time, money, effort and everything else that made it possible”. Our itinerary included Rome, Florence, Venice and Chinque Terre (Veranzza). Here are a few highlights of the trip:
• Rick Steve’s guide books - This man knows the region inside out and our travel philosophy matches his. His guide books were so good that we did not waste time enquiring in a non-English speaking country or waiting in queues. They explain art and history interestingly in easy to follow language, making our visits to museums and galleries involving and worthwhile. We knew exactly where to spend time and what to skip and enjoyed this tour without any tour guide, just his books, quite economically.
• Borghese Gallery – By far the best gallery/museum from our perspective. We have this ‘wow’ factor that we attribute to things that just make us spell bound. Snorkeling in Hawaii, a night spent in Jaiselmer desert, Gurudongmar lake in Sikkim are examples of what we felt as ‘wow’ experiences. Among the places we have visited, we typically come across one or two such ‘wow’ experiences in a two week tour. Two hour Borghese gallery tour itself had two such experiences (three for Rupali). These were three marble master-pieces - Venus Victrix ; The Rape of Proserpina; and Apollo and Daphne.
In Venus Victrix, Pauline Bonaparte, (sister of Napoleon) posed full monty. One can see the creases formed and the dent made when upholstery gets strained as someone sits on a sofa or a couch. The folds that occur on the fabric that one has draped as one sits is all finely detailed in this marble piece which has all the imagination and finesse.
In Rape of Proserpina, you can see Pluto’s (her abductor) fingers sink into the flesh of his victim, Proserpina. Her lips are slightly opened, as if she were screaming and begging for help, while delicately crafted marble tears roll down her eyes look as though they are literally dripping down her face. Pluto’s muscular and Proserpina’s supple skins show how a strong marble stone is a slave to a great artist.
In Apollo and Daphne, Apollo pleads with Daphne to fulfill his desire while she, repulsed by the idea, begins to flee. Immediately, her skin turns to a tree. Walking around the sculpture gives an impression of the metamorphosis taking place capturing Daphne's transformation to a tree with intense emotion and drama by portraying the different stages of her changes.
These three marble sculptures are so finely done that you are absolutely amazed at the artist’s imagination and skill to turn marble in such supple forms. These pieces of art and more such we saw in Italy underscore the point that a sculptor not only needs the strength to cut the marble but also the skill to get it to form.
• Chinque Terre - Chinque means five and Terre means villages. This place is a cluster of five villages, nestled on the Ligurian Sea. What is funny about this place that it is so out of regular Italian touristy spots that only two types of tourists can be seen here – the locals and Rick Steve’s readers. After so much of art, culture and history absorption, Chinque Terre was a relief. Pure natural beauty, lovely food and relaxed ambiance made up our last two days in Italy seem like a great desert after a wonderful meal. Our room, perched on the top of a hill had an amazing sea view. The terrace on top of it, though difficult to maneuver, was a treat with a 360 degree view of the village and the sea.
• St. Peter’s Basilica - St. Peter is considered as the first Pope. He was one of Jesus’ first disciples and given special authority. His tomb rests under this church (basilica). Another wow experience. Calling it gigantic would be modest. It can accommodate 60,000 people and runs two by one football fields in dimension. The height from the center of the dome to the base is itself more than one football field. Letterings on top from the New Testament that run across the periphery of the basilica are seven feet in height. Dozens of marble sculptures inside measure 15 to 21 feet. Not only in size, the basilica is precise even when it comes to geometrical symmetry.
• Dueling Orchestras of Venice - Why Venice is called a romantic city puzzled us. It is too crowded for seekers of privacy, the canals stink at places, food is not particularly great and gondoliers, contrary to popular opinion, seldom sing. There is one exception however. The orchestras at the St. Mark’s square. Each restaurant has an orchestra with 4-5 musicians with violin generally being the lead instrument. Restaurants are juxtaposed to each other and they set the tables on the square. One can either sit on a table and splurge on coffee or wine or just stand on the square and watch them play free of cost. They are coined ‘dueling’ orchestras probably because one plays while the other rests, though they are not actually dueling. Though we had as much knowledge about European music as you may about rocket science, this was a treat. If you understand music, you don’t need to understand the language. The tunes that they were playing were so sweet and rhythmic that anyone can follow, indulge and enjoy. Some of those standing, start dancing to the tunes and those sitting extend and hold hands or lean on shoulders. The experience, romantic, is second to none. On both the nights that we were in Venice, we spent time listening to the orchestras. The only European tune that I am familiar with is the one played in the movie Godfather. I was hoping that they would play it. They did not in the first night. And on the second when we were just about to leave, they played it. It was enigmatic.
Italy is recommended to anyone who wants to have a wonderful holiday.
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