2016, History & Hope!!!

This time of the year, the last week is usually a “feel good” week. There is celebratory mood around thanks to Christmas, holiday outings to look forward to and with a fresh New year coming up – a feeling of Hope. Had the year gone well, one is anyway happy and hopes that the good days continue into the New Year. If it had not, you want to quickly move on and again hope that the New Year brings some cheer. Was it Ghalib who said – ‘Umeed par Duniya Kayam hai…uska saath na chodo’ (Hope sustains this world, don’t lose its company!) So it is with fervent hope for Achhe Din (oops not the political type) that one usually steps into the New Year – year after year!

While there are 12 months, 52 weeks and 365 days to a year, when history is written a year is usually defined by what happened in a week or probably in a day.  And seldom have we realised when an event unfolds that it is history in the making. That is left to the wisdom of hindsight. For example, we now know that 1991 has been an important year for India. For opening up of the economy. For the end of license Raj. For unshackling the animal spirits. Yet, when the Industrial policy announcement was made in July 1991 by the Government, they were acknowledged by and large only as important “course corrections” considering the state of the economy by the media.  Then, they were not labeled historic.  The “Reforms” were always treated with suspicion and even in the Congress party there were many a doubting Thomases who derided the then Prime Minister Narasimha Rao and the Finance Minister Manmohan Singh. But today the rearview mirror displays that the reforms of 1991 have indeed left a positive trail in our country.

History is a great leveler. And at times more charitable than the present. So you find more eulogies on Narasimha Rao as a visionary, as a modern Day Chanakya,..,..  today than there were when he was alive. Or even when he passed away in the same month around the same date in 2004. Hence I was not surprised when Manmohan Singh in his last press conference as a Prime Minister famously said – “History will be kinder to me than the contemporary media!!!”

So likewise when history is written I do believe that 2016 will have a significant place in it for the one event which happened on the 8th of November – The Demonetisation of high value currency notes! We will know how the after effects of this move play out in the next few quarters. As I mentioned we live in eternal hope. So the hope is that we get over the pain caused by this move sooner than later and the economy is back in track by March/April.

But apart from this, if there is one thing for which this move will be remembered for in history, it will be for how Demonetisation changed some steadfast habits of Indians. As author Shankkar Aiyyar famously said in his book – Accidental India that almost all of India’s turning points like the White revolution, Liberalisation,…) were not the result of foresight or careful planning but were rather the accidental consequences of major crises that had to be resolved at any cost.  Similarly the cash shortage situation resulting out of the Demonetisation program in the initial few days was panning out to be a major crisis. (Some would say it is still, though I beg to differ looking at how ground situation has changed for the better) This made the buyers and more importantly the sellers think of carrying on with their businesses with no or less cash.

Today in a traditional market in Mumbai – the usual signboard which said “Credit Card and other cards not accepted” – has the word “Not” blackened out! Paan Walas sporting “PayTM Accepted here” is no more just a subject of WhatsApp jeers but a reality. Restaurants and other outlets no more scorn at you if you flash your credit card for small payments. At multiplexes, there was are big lines during the interval not for buying popcorn tubs, but for swiping cards in one solitary POS machine! Personally speaking I am left with more cash in hand than ever in the past few years! The expenses haven’t reduced mind you though I would have lived with that side effect!

So this change in behavior of using less cash and migrating to digital means seen in Metros and big cities which will also spread to small towns and villages in due course could again become one “accidental” after effect of Demonetisation. We all know the overarching benefits of a Cash less /Digital economy. Indians by nature are trained to be less transparent in terms of disclosures – in matters of income and expenses. If we are forced to shrug off this ingrained reticence and have now become more open to transparency (all digital payments leave a trail) I think it is one helluva big step for a country like India naysayers notwithstanding.

2016 has been a historic year when status quo has been demolished everywhere. Brexit, the ascent of Donald Trump and in India – the Demonetisation move. The underlying sentiment has of course been “HOPE” in all these of better times ahead.  With the ushering of another New Year, there is continued Hope. For, Hope is not just a good thing but is the “Best” thing! And isn’t it increasingly perilous to lose its company?

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“Hoping” you will continue to read my posts and provide valuable feedback – see you in the next year!

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Savour the Achhe Din!!!

In these largely agonizing days in India, a call to savour the Achhe Din would seem highly preposterous, isn’t it??? Well, wait a minute!

  • New Delhi, Oct 1984 – The then Prime Minister Indira Gandhi is assassinated by 2 of her own body guards. Over the next few days, thousands of Sikhs get killed and their property burnt in Delhi in a violent reaction.
  • Chennai, Dec 1987 M.G.Ramachandran, the charismatic actor turned Chief Minister of Tamil Nadu died after prolonged illness at his residence. His death sparked off a frenzy of looting and rioting all over the state. Shops, cinemas, buses and other public and private property became the target of violence.
  • New Delhi & Parts of North India, Aug 1990 – The then VP. Singh Government decides to accept Mandal commission report which recommended 27% reservation for OBC candidates at all levels of Govt. services. Large scale protests erupted mainly in North India including self-immolation bids by students against co-opting the report.
  • Mumbai, Jan 1993 – Following the Babri demolition in Dec, 1992, what started as peaceful protests escalated into large scale communal riots in Mumbai between Dec 1992 and Jan 1993 where thousands of people died, properties looted and destroyed.
  • Thane, Mumbai, April 2001Shiv Sena Leader Anand Dighe dies in Singhania Hospital, Thane at a relatively young age of 50 following a cardiac arrest. As soon as the news of Dighe’s death broke, irate Shiv Sainiks went on a rampage in the premises of Singhania Hospital and set on fire the hospital.
  • Bengaluru, Sep 2016 – Supreme Court orders Karnataka to release of 15000 Cusecs of Cauvery water to Tamil Nadu. Immediate violent reactions erupted with burning of TN registered vehicles and destruction of public and private property.

In all the above, one can notice that while the provocations are different – from a leader’s killing to another leader’s own demise to a political move to demolition of a religious symbol to an adverse Supreme Court judgement that too in different parts of the country, the reaction of the people followed a pattern. Violence, looting, mob fury, vandalism,…,…. leading to many deaths and large scale destruction of property.

This proves that as Indians we are a bunch of gullible emotional people. We can get easily provoked into carrying out what are supposedly unlawful activities that bring disrepute to the country and also affect us economically.

In any country’s timeline there are defining moments. Moments which change the destiny of the country for the good or worse. Our country’s history since Independence also is replete with such defining moments – some of them which we can be proud of and others which push our heads down.

I reckon that the Demonetisation call of 8th Nov, 2016 would be such a defining moment in our country’s history when it’s scripted later. I am not here to pronounce this based on the economic benefits of Demonetisation. The erudite are already doing it with media abound with pieces hailing and trashing the move in same breath. And frankly it is early days yet. However something else that is monumental is happening in the country which is what this post is on.

Going back to what I elucidated in the beginning of the piece, in our country we get easily provoked. And the result of the same is there for all of us to see. In this context let’s look at what’s been happening since that eventful address to the nation of the Prime Minister Narendra Modi on 8th November:

  • Bulk of currency in circulation was withdrawn and we were told to go Banks/Post offices to withdraw/exchange the old currencies before Dec. 30th
  • Since then there has been serpentine lines in front of banks.
  • Banks have been woefully short of currency as RBI’s supply chain right from printing to distribution has not been able to cope up.
  • Banks when they had currency only dispersed high value 2000 rupee notes.
  • ATMs have not been mostly functioning and if working for few hours, could give us just 1 note of Rs.2000.
  • The rules of withdrawal and exchange have been changing by the hour and have been the butt of new WhatsApp jokes by the minute! In fact the exchange goal post of 30th Dec. has been brought forward.
  • Both the TV and print media have myriad stories of how Demonetisation has affected the common man in urban and rural areas.
  • There have been many deaths attributed to Demonetisation in many parts of the country. Every day there are updates on the death toll in the media.

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It’s almost a month now and still the situation is fluid. As one can see that this Demonetisation gamble by the Govt. has presented to us – public many, many opportunities to get provoked.  But the one difference is we that have not got provoked. At least up until now. And I hope I have not spoken too soon.

The resultant emotional outbursts leading to violent reactions for events mentioned in the beginning are sometimes quite spontaneous (though it is still difficult to explain the reactions so very violent) but many times orchestrated to further political interests. In this case (Demonetisation) also we have seen few political parties trying their best to spin things out of control and bring the Govt. on its knees. But just that this time around, few things have been different:

  • The common public of all hue – have not taken to damaging of banks, burning of empty ATMs, attacking Bank officers, setting on fire currency vans,… even when they have been driven to heights of frustration.
  • There have not been blackening of faces of BJP leaders or burning of effigies of PM or the RBI Governor!
  • For the 1st time in my memory, political parties had to go a large length to explain that they were not supporting any Bharat Bandh supposedly after reading the citizens’ Anti bandh mood!
  • For the 1st time again in my memory, no political party has given the Demonetisation move a communal colour so far. Otherwise in our country any decision from awarding a Padma Shri to constructing a hospital is given a communal tint by commentators and vested interests very convincingly.

For the above reasons I would like to believe that the benefits or otherwise of Demonetisation notwithstanding, this move will emerge as a defining moment in India’s history – where the public of India completely toed the line of its Prime Minister, shunned the rhetoric of others, remained unprovoked and went through the grind.

I am not sure if we as a country will display such great maturity in reacting to unfavourable events in the future. But for now, let’s savour the Achhe Din!!! Shoba De in her today’s column calls 2016 – Annus horibilis! No, Ms. De – for this significant change in our public reaction, 2016 is in fact Annus mirabilis!!!

Toon Courtesy: Satish Acharya

Also read my other post on Demonetisation – “Cash Mukt Bharat” here!

Ad today, Sad Tomorrow – A Brand Ambassador’s soon to be story!!!

Since the time, Sindhu won a Silver and Sakshi a Bronze for India at the Rio Olympics, their phones (probably endorsed by a Kareena or an Alia) I guess haven’t stopped ringing. Or perhaps their managers’. For, many brands are on their way to signing them as brand ambassadors. For now it’s O.K., for Sindhu or Sakshi to sign on the dotted line in these endorsement contracts and make hay while the medal shines. However not if the Government pushes forth the changes in the Consumer Protection bill which proposes jail term and fine for celebrities in case of misleading advertisements for products they endorse. The intention being to make celebrities also responsible for products they endorse apart from the manufacturers. “Consumers tend to get influenced by the promise made by the celebrities in ads” is the argument behind the proposed move.

As a marketing professional I have never been very excited about using celebrities in ads to push a product. In B-schools every year, one popular project students carry out with the blessings of their professors is to find out the effectiveness of celebrities in an ad campaign. That the study is done regularly conveys that the jury is still out on that. At a superficial level though, it is commonly accepted that use of a celebrity helps break the clutter and differentiate the ad. Though as per me, this is “laid back, lazy creativity” as there are indeed many other ways to break the clutter. Using celebrities is of course a low hanging fruit for those with big budgets and is often deployed as a creative strategy when one can afford. I just realized that this piece is not on whether to use celebrities or not in ads. We will keep that for another Sunday. But on the proposed changes in the law which could stop the party on its tracks for the so called Brand Ambassadors.

Going back in time, I think ads whether print or TV just had people featuring in them and were called as models. And then slowly the practice of plugging in celebrities like actors, sportspersons,… crept in as I mentioned, probably to make the communication stand out. I am not sure when this “celebrities modelling” for an ad morphed into “endorsing the product” and then as we see now becoming “brand Ambassadors” for the company.

She looks like Sonia Sahni to me.

As long as celebrities “featured” in ads for products I guess they were just plain actors parroting some lines. But when they started endorsing brands (making a killing in the process) – that’s when I guess they came into the ambit of influencing buyers’ decision and of course within the prying eyes of lawmakers. In my understanding there are 2 types of celebrity endorsements. First, where a celebrity is used to promote a product which is related to what he/she is doing and is a direct endorsement. For example – A Sachin or a Kapil Dev being used to promote ‘Boost’- an energy drink for children. When Kapil says – “Boost is the secret of MY energy” there is a clear communication to moms that “if you want your child to become like me, do consider giving Boost to your kid”.  Or when Katrina Kaif says – “if you want a smooth skin like mine, use Lux Soap”!

The second category is where brands just use a celebrity as a face in the ads and the products may not be related at all. For example – Amitabh Bachchan featuring in Binani Cement ads.

And probably there exists a third category – where the product is not related to the celebrity’s field of normal work but companies tap into the credibility of the star to push their wares. Though this is not common, we have started seeing this of late. For example, when Cadbury’s wanted to make a comeback after they got hit by the “worms inside chocolate” tornado, they dialed in Amitabh. Amitabh featured in the commercial as “himself”. See the ad here. As you can see in this TVC, he was clearly putting his personal credibility at stake to communicate to consumers that with the many steps taken by the company, “All is well” with the chocolates!

(I’m not considering the social awareness campaigns using celebrities for the moment)

In the whole business of celebrity endorsements, many questions do arise. Do the celebrities who extol the virtues of brands use the product/service themselves? Have they first checked if the claims they are making are true? In the case of endorsing for investment projects,.. do the celebrities vouch for the credibility of the promoters?

The thinking behind the proposed changes in the law seems to be after many instances of consumers landing in the pit after they invested their hard earned money in projects which also had big stars endorsing the same.  At the same time, there have been so many cases where consumers lost money in projects where stars were not at all involved!

It is difficult to believe that consumers are so gullible that they buy a product just because a star endorses it. This premise seriously underestimates the intelligence of a consumer. If just a star endorsement can make a product tick, all those mobile phones with celebrity brand ambassadors must be outselling the I-phone isn’t it???

But whatever it may be, punishing celebrities for wrong claims of a product because they feature in the ads seems a bit farfetched.  A consumer is expected to do his/her bit before deciding to buy a product/service. More so in the case of big investments. Putting the blame on a M.S.Dhoni just because a real estate project he endorsed didn’t see the light of the day is sheer escapism, I believe. I think we should consider celebrities featuring in ads as enhancing the entertainment quotient and nothing beyond that. At the same time as a socially conscious individual a celebrity should be careful in lending his/her name or face to a product which has inherent health concerns a la Gopichand who refused to feature in Cola ads in his prime time! And also do a bit more homework on the credibility of the brand/promoter before signing on the dotted line for the next 1 crore endorsement deal. Or else post the new law it will be “Ad today, Sad tomorrow”!!!

Post script: Will be interesting to know in which category of celebrity endorsements does the Jio campaign featuring our PM fall into???😝😝😝

“Idea Extension Trap”!!!

Al Ries and Jack Trout the “Art of Positioning” gurus in their best seller – ‘Positioning – The battle for your mind’ devoted one full chapter on what they call as the “Line Extension Trap”. They claimed that Line Extension whereby marketers having built a successful brand in one product category extend the same brand to another line of products is a trap. A vicious trap which as per the marketing gurus ends up diluting the core promise of the original brand.  A Ponds talcum powder which has been a very successful brand when extended to a tooth paste confuses the consumer and eventually fails. And there are more examples. But in business, line extension is often the trap which the brand managers walk into with their eyes open with their advertising agencies in tow.

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These are the times of “Big Ideas”. And I see the same extension happening on good ideas. For example once an advertising communication idea once does well as measured by the viral and viewership statistics the temptation is to flog it again and again.  This, without realizing that the idea is already way past the best before date. A telling example of this is the Star Sports’ Mauka Mauka campaign. The first spot (see here) on this now familiar campaign was conceived before the Indo-Pak encounter in the league stages of the ICC ODI World Cup in 2015. With the background of the previous Indo-Pak meetings at the Cricket World Cup which have all been won by India, the spot featuring a Pakistani fan waiting desparately for a Mauka (opportunity) to celebrate a Pakistani win was bang on. The idea, the story and its execution no wonder caught the fancy of millions of fans and the commercial soon became a case study for viral marketing! It also spawned a variety of spoofs which added to the value of the Idea. So it was not surprising that Star Sports followed it up with another Mauka spot for the next India match which again became popular. Having smelt blood, the broadcaster decided to flog the Mauka Idea. India exited the World Cup in the Semis, but the Mauka spots didn’t. Now as the World Cup progressed, Mauka spots started to get boring, repetitive and almost were like being thrust upon the audience. One year later, for the ICC T20 World Wup, Star Sports was back as the official broadcaster. So did the Mauka ad just before the Indo-Pak match. Only that this time, the story line looked unnatural and the ad fell flat in terms of idea and execution. Now this is what happens when marketers (Star Sports in this case) waltz into the “Idea Extension Trap”. Star Sports is not alone and there are many others in its August Company.

Vodafone for one. I feel that the mobile service provider with its once adorable pug has also fallen into this trap. For its 4G launch (watch here), it has tried to resurrect the charm of the pug which few years ago did wonders for Hutch with its “Wherever you go our network follows” campaign. The pug again was brought into action when Hutch became Vodafone and it wanted to popularize their “Happy to Help” stores. But now in this Vodafone’s 4G launch campaign, the pug is looking tired and jaded (atleast in our eyes) and the campaign when compared to the Airtel’s 4G campaign doesn’t stand and that’s in my humble opinion.

In the big screen also oflate, idea extensions have become rampant. The original Hrishikesh Mukherjee’s Gol maal was a classic and will remain one. This is one film which got remade in almost all major Indian languages. But the subsequent Rohit Shetty imitations of Gol maal in the form of Gol maal returns, Gol maal 3,..  will remain just that.  Lowly imitations of an idea which has now been flogged to death. Rohit Shetty went one step ahead by milking the same Gol Maal idea in another name – Bol Bachchan!!

This bug of Idea Extension is most prevalent in TV programming content. A successful format gets packaged, repackaged and extended and finally kills the original idea. When Kaun Banega Crorepati becomes a roaring hit with Amitabh Bachchan in Hindi, the producers extend the same KBC format to different languages with regional stars. The fact remains that there can be only one Amitabh Bachchan. The regional shows turn out to be pale imitations of the original big idea.

Is this trend of extending and flogging ideas which have worked in the past, due to pressure on time or pressure on cost, or a thought out strategy or plain laziness or a combination of all these is a matter of conjecture.  But one thing is very visible and clear. The temptation to walk into the “Idea Extension trap” is real and looks like may not recede in the near future.

Post script: Now here’s the irony. Having tasted enormous success with their 1st book –‘Positioning – The Battle for your Minds’, where they warned marketers of the “Line Extension trap” authors Al Ries and Jack Trout did exactly the same thing. Extended the “battle” concept to their next book and called it ‘Marketing Warfare’!!!

Long lasting Budget Wishlist!!!

Tomorrow, on the 29th Feb 2016 as the finance minister “rises to present the budget of the Union for the year 2016-17”, he also raises a lot of hopes. In the media in India in the past 1 week or so, it’s been raining wishlists from the budget. As an Aam Admi, I also got tempted to join the bandwagon to submit my own wishlist though I know very well that it’s too late to incorporate even one from this (Wait a minute, may be one can be). But I still go ahead and here’s my list of 10 things which I would like to see change around the budget atleast in my life time.

Here we go:

  1. First up, do away with this archaic “Halwa ceremony” where the FM participates to prepare Halwa in the North Block office along with the staff who are going to be holed up for few weeks in isolation running upto the budget. What’s this Halwa got to do with the budget making? On the other hand, “Halwa Kudukarathu” (Giving Halwa) in Tamil is a euphemism for taking one for a solid ride😁😁! So unless the Govt. actually meant this only every year, they should stop this. And what’s this FM and team posing every year stirring up the Halwa😩
  2. On the day of the Budget, one familiar sight every year you can’t escape is the FM posing with a shining new “Brown Brief case” just as he enters the parliament. To me this brief case symbolizes extreme colonialism which we find it difficult to shrug off. In British parliament also same thing happens to date. (For more on the history of the “Budget Bag” pls click here).  For a country, which boasts itself as an IT behemoth and all that jazz why can’t the FM just walk in with a high capacity pen drive or a lap top instead of this antiquated brief case??? Won’t that be cool?

Budget pic3. And as the FM reads the budget speech, it’s usually from a huge bound document supported by a wooden stand crammed with facts and figures. How will it be if the same is presented as a power point presentation – with slides to the point with graphics? (something we could see in this year’s Economic Survey presented by Arvind Subramanian and team)

4. I don’t know when or who started this trend of sprinkling budget speeches with Shayari??? I do know that FMs like Manmohan Singh, Yashwant Sinha and now Arun Jaitley (Not to mention P.Chidambaram and his Thirukural couplets) get into shayar mode in the course of the budget speech but with limited effect. While it’s good to keep the speech which tends to get boring interspersed with some couplets, poetry,… more often than not it looks thrust upon and not in a flow. As if the British left that also as a rule! Some good self-deprecating humour could be a better option!

5. What is this thumping of the desks by the treasury benches for every outlay announced? It’s now obvious that outlay in itself doesn’t mean anything. Before the FM starts reeling out budgetary allocations, I would like to see the FM starting with the “Outcomes” from the outlays of the top 20 items in the previous year and explain how it benefited the people at large. That will give us some idea as how “our” money has been utilized and for the Govt. an opportunity to boast their report card. This can be followed by the outlays for the next year with clearly expected outcomes from the same.

6. And what is this “ranking” business the media resorts to by the Industry captains immediately after the budget? We have now seen that the devil is in the detailed explanations that surface later. So any ranking without understanding the fuller provisions according to me is an exercise dipped in frivolity.

7. And when is the last time you have seen industry captains giving a thumbs down to the budget?? It is generally a mega thumbs up or atleast a thumbs up with conditions attached. The feedback is always ‘right” and seldom “honest”. So why get into reactions from the Industry which are any way far removed from honesty?

8. Any why do the pink channels get excited and scream about the way the Stock market reacts to the budget?? We have now seen many times in the past that the Stock Market reaction to the budget is knee jerk and not borne out of any proper analysis of the after effects of budget proposals.

9. And why do the pink papers – The Economic Times in particular come out with a blockbuster issue the next day of the budget with the full budget speech and the myriad annexures??? Just upload on the net and leave it to the discerned to access if they need. Saving trees and the environment can just start here!

10. And finally, instead of the FM just making a once a year marathon appearance why not present a review of the budget and the progress made on outlays once every Qtr.? This will help us understand which ministries are performing and will aid PM to separate the wheat from the chaff!

I admit that my wishlist is more on the “method” and not on “matter” and “form” rather than “content”. One of my earlier posts (read here) delved on that a bit. Hopefully we get to hear something sweet in the leap year budget speech tomorrow which will leapfrog our economy. And are not dished out the greasy “Halwa” we Tamilians abhor.

Waking up “Make In India”!!!

In a week from now, Mumbai will host the “Make in India Week” – an event planned to give fillip to one of Modi Sarkar’s flagship program – Make In India. This was aimed at reviving the interest of domestic and MNCs in setting up/expanding manufacturing footprint in India – a sure shot elixir to tackle the unemployment malady and create millions of jobs. When this Govt. kicked off this initiative, one would have expected more cheers than jeers. However the reality was different. Leaving aside the noises from the opposition which anyway criticizes what the ruling Govt. does in India (this is irrespective of who is in power and who is in opposition), the naysayers included reputed economists and thinkers. They were of the view that it was too late for India to board the “Manufacturing” bus. China is already in the driver’s seat being the “factory for the world” and global companies are already heavily invested in China. Also the general view that with increasing automation in the shop floor, you don’t need much of low cost labour for manufacturing. So betting on manufacturing to generate millions of jobs may not be a cool idea any more. The session during the recently concluded World Economic Forum in Davos about “The Fourth Industrial Revolution” powered by Connected devices, 3D printers, Super Smart Robots and the like,… probably put paid to this idea of the critics. So instead of playing the catch up, the cynics’ view was that India should play to its strengths namely “Services” and invest further in developing soft skills to scale up further.

There is probably merit in this argument. However if one analyses the different states of India in terms of the economic condition it is clear that no state can hope to survive and grow by just focusing on services. For a diverse country like India with a huge disparity in income and social strata an even economic growth can be achieved only with a mix of manufacturing, services and agricultural activities. The top states in terms of GDP in India like Maharashtra, Tamil Nadu,.. have a very healthy mix as I noted in one of my earlier posts on “Car manufacturing” in Chennai (Read here). A fourth Industrial Revolution may augur well for developed countries with shrinking population, ever rising wages and diminishing demographic dividend but in India we still need to reap the benefits of the 2nd and 3rd.

So I think that this Govt. is right in pursuing the Make In India initiative particularly at a time when China is facing economic headwinds. The labour in China can no longer be termed cheap with wages ever-increasing to keep pace with the aspirations of the people. Many of the global corporations do not want to put all eggs in one basket that too Made in China😁😁. I know for sure that the Japanese are expanding into Vietnam in a big way for production. So could be other countries like the US, Germany,…,.. soon. So the moot question is are we positioned well to make them Make In India??

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As the logo of India’s Make In India program demonstrates, there are many cogs in the wheel for a country to be successful in manufacturing that too for the world. Cheap and Skilled labour, Vendor base, Access to cheap raw material, Quality awareness, Access to ports and logistic hubs (particularly for exports), flexible labour laws, Ease of doing business (which applies not just for mfg.) and above all a very efficient infrastructure (Roads, airports, ports, broadband connectivity,..,…) in short a “pro manufacturing eco system”. And for India while all the other cogs could fall in place over time, the biggest challenge is in infrastructure. One would argue that the eco system will be in place when growth picks up and factories are set up. Necessity is the mother of everything you know. For example wasn’t Gurgaon just a “Gaon” before Maruti?? Today it is a recognized Auto mfg. hub. Similarly there are many examples of PSU Units which were set up first which then turned out to be manufacturing hubs in course of time. Goes the argument. No argument can be more specious than this. Maruti was set up at a time when India was a protectionist state where the promoters (in this case the Govt. of India) can patiently wait for more than 10 years for the 1st car to roll out! Same is the case with many PSU units where the overarching mission was upliftment of the society rather than shareholder value or profits! Not in these “QSQT” (Quarter Se Quarter Tak) days!!!😁😁 And in these days of strict WTO regime the Government cannot slap high duties on imported goods to protect the local manufacturers.

So for Make In India to succeed India needs to get the Eco system right first up. While India has a natural advantage in some aspects like availability of not just cheap labour but also skilled, large Engineering pool,.. the road is long for areas like “Ease of doing business” and Infrastructure as I mentioned before. And fortunately the Govt. has rightly recognized these challenges. Its’ for the 1st time that a Govt. website has spotlight on “Ease of Doing Business” like in the Make In India home page, I reckon. See here. It was a pleasant surprise to see the list of initiatives already taken and ones on the way when I clicked on “Ease of Business” tab. And it is also great to see every day in Newspaper one state or the other hosting Investor summits to lure potential investors with Make In India being an important aspect. So while pitching for investments is all right, I think the state Govts. must also focus on getting the infrastructure in place in their respective states which helps not just manufacturing but in general fosters economic activity. Today inspite of higher labour costs if many companies are still outsourcing mfg. to China it is because of their fantastic infrastructure overall which helps to keep indirect costs lower. India’s labour costs is lower but the indirect costs due to poor infrastructure weighs us down.

I think now the world is quite convinced on the intent of the Modi Sarkar to promote Make In India. Now the time has come to morph the intent to reality by focusing on Infrastructure for which the states have to work in tandem with the Centre. That’s what will wake up Make In India and not the raking up of intolerance debate every other morning😩

Make in IndiaToon courtesy: Satish Acharya

“Broken” News!!!

It’s a common belief that “The More the Merrier”. Particularly if you are a consumer. One always gets a better deal if there is choice. The fact that you can exercise your freedom of choice makes marketers to provide a better deal in terms of Quality, Quantity, Value for Money, the works. It is also said that in a crowded market place, brands try to differentiate themselves. Differentiation by way of form, quality, price, positioning in the mind or overall offering and vie for the consumer’s wallet. But in India, there seems to be one product category which defies all these economic fundamentals. Here More is actually Less!!! Even in an overcrowded market place there is hardly any product differentiation. From one brand to another, they only provide good advertisements for “Cloning”. And when the number of players increase the overall quality keeps falling. Irony dies a thousand deaths at our drawing homes every day and night. Yes, welcome to the world of 24*7 News channels in India!!!

breaking news

I belong to what I refer as the Doordarshan generation. A generation which grew up without much choice for anything but stayed contented. During our growing up times, DD was the only source of entertainment as well as visual news. So the 9’o clock prime time news bulletins were indeed bulletins which walked us through the important happenings of the day. The news readers were news readers and not “Anchors”. They were reading news and were not engaged in endless hysterical debates. At our homes, one of our favourite games at the dinner table used to be guessing who will be the newsreader that night – Among people like Minu, Geetanjali Iyer, Rini Khanna, Tejeshwar Singh, Usha Albuquerque, Sunit Tandon, Neethi Ravindran,…,… Blame it on my memory if I missed a few others.  Apart from consuming news, as youngsters we also had the opportunity to imbibe the way they modulated their voice, their English diction and the overall presentation.  Even sans the choice the prime time news bulletin served its purpose effectively of keeping us informed of current affairs in India and abroad.

Now cut to what I call as “Boredarshan” times and rapidly transcending now to “Boordarshan” times!!! Today, in the 24*7 news channel space we are spoilt for choice.  Or are we???

At any point in time, try to exercise that power of your choice. Across all channels invariably prime time news will start and end with debates where the participants across channels will be the same. I guess for the political parties, it is easy to prepare one spokesperson for a topic and make him/her parrot the same arguments across all channels. In any case as he/she moves from one channel to another, he will anyway meet the same counterpart from the opposition as well!!! Not just prime time debates. A new book is hitting the store? Between 2 days you will find the author providing “exclusive” interviews to 10 different channels! (As per English dictionary, the word “Exclusive” in its noun form means ‘an item or story published or broadcast by only one source! So how does showing up in different channels is termed exclusive has been elusive to me).  Come Friday and a new film is being released? You will see the film crew parading from one studio to another in the National Capital Region doing the same silly things in the guise of “Promoting” the film! And somebody emerges as the newsmaker of the day? You could meet her/him in all channels that day. (Except if the newsmaker is Lalit Modi 😃 He only gave interview this time to one channel that too in Montenegro! While the other channels also reached the Adriatic coast he changed his mind and refused to oblige). The questioners sound the same. The questions sound the same. There is a race among channels to get interviews from the newsmakers that very same day. And on weekends the channels dish out similar content like Retro Bollywood stuff, Tech reviews,…

Not just content. If you look at the style – Among anchors and reporters there seems to be no differentiation.  All anchors by and large keep interrupting and do not allow the participants to complete one sentence. As I had penned in my earlier post DA 24*7 (Read here) we find Devil’s Advocates in all hues 24*7 in news channels. Come weekends all the “Star” Devil’s Advocates take a break and leave their fiefdom to their juniors who undergo on the job training to what else – interrupt!!!

Even on form, differentiation seems to be zilch. The template across all channels seems be a crowded screen with too many details populated.

And oflate their own marketing and advertising also look similar. Every channel claims to be No.1 in viewership😲 Damn the devil which is in the “*”!!! And all of the channels cry hoarse against Noise, Sensationalism,… and exactly do that. Day in and Day out!

So what’s going on wrong here? One could blame it on the TRP driven advertising revenue model for the channels. So when one channel with a certain content/style/form gets high TRPs, the others follow the same. But I would blame it on the “TRP model” itself. I am not too sure if the present TRP system captures the preferences of the viewers accurately. For a diverse country like India, I do feel a more heterogeneous viewership capture system is the need of the hour. Lest in the garb of “the Nation wants to know” we will continue to hear more noise and less news – across all channels. And if you still recall  “broken Record” of yore, news will continue to be that – “Broken” News as you switch from one channel to another😞😞

Postscript: Recently I was forwarded this clip on WA. Wonder if we will ever get to see such an interviewer who doesn’t interrupt and an interviewee who doesn’t get flustered and stays calm throughout, in these times in India. Check it out.(https://www.youtube.com/watch?v=_MATAqeiL-4)