India’s Manufacturing Sector Facing Challenges

Back in 1951 India’s then prime minister Jawaharlal Nehru announced that India had to become industrialized, and that as fast as possible. While the politicians have done everything they could since then, including Soviet-like planning, to industrialize the country, India has yet to become a manufacturing powerhouse like China. Indians seems more willing to grow crops and sell services than manufacture advanced products and machines. While India’s economy had recorded impressive growth rates over the past decades, most of growth came from the service sector, and their overall performance is still being dragged down by an underperforming manufacturing sector, resulting […]

Read More…

Life’s Getting Better in China, Brazil, and India

These are the three countries in this world that are making an impressive leap outside of the economic crisis and onto the ship of economic growth as well as increased retails, stable inflation and a better life standard. China moved up to the second place in the GDP ranking of countries in the recent past years. In 2010 a report, created by the United Nations, states that China has a GDP of 5.74 trillion, whereas that number grows to 7.3 trillion for 2011, according to the World Bank report. They have extremely high growth rates and the people are ready […]

Read More…

Small Town Consumers are Shifting India’s Economy

The growth of India’s company is decelerating. As compared to the previous, it has only expanded by 5.3% this year, in the quarter of January to March, the slowest so far for the last seven years. Consumers are skimping. According to various business executives, the product sales of durable dropped by 10 to 15 per cent in March this year. Official data showed the Indian companies today used about 15% less color television and 30% less air conditioners today. […]

Read More…

IKEA Bolstering India’s Economic Confidence

The Swedish group IKEA, the world’s leading manufacturer and retailer of furniture asked for India’s government approval of their proposal to invest an estimated amount of €1.5 billion or $1.9 billion worth of business by establishing about 25 stores around the country in the next years. IKEA’s business venture sparked a brand new hope for the policy makers of New Delhi who have been trying to win back the confidence of foreign investors in the country’s economy after some major flip flops. The change in policy a year ago which permits foreign retailers to fully own their Indian businesses made […]

Read More…

Procter & Gamble Innovates on Thin Margins in India

In a market of 400 million people, India is one of the targets of major manufacturing corporations in product innovation. Unlike in other nations, the upscale market of India is seen to be a peculiar one as consumers have different preference and needs. Venturing into this demanding market is P&G with its effort to become the premium producer of efficient shaving razors. […]

Read More…

Multinationals in India: New Paradigms Business Applies

Up until recently, an international brand would enter an emerging market like India, by taking an existing product and create a stripped down low-cost version for the new market. But not any longer. Traditional business models no longer apply in India. Increasingly, you will see new products developed from the ground up with new business models. The March 2012 McKinsey Quarterly article, “How Multinationals Can Win in India,” predicts that in the next 10 years, 20% of global revenue growth will come from India. For multinationals in India to succeed, they must adopt new business paradigms immediately. So far, multinationals […]

Read More…

Indian Men Becomes Sophisticated Consumers

India’s modern retail format is changing. What was traditionally primarily women’s domain, is now joined by a growing force of brand and product conscious men. For India’s modern man, shopping is no longer reduced to the absolute necessities. They are increasingly shopping for discretionary products such as apparel, accessories, gadgets, and grooming products, just like their female counterparts. An article posted recently in India Times revealed a big change on men’s approach to shopping. According to the management of one of the biggest shopping centers in India, the Damodar Mall, the number of men found shopping is increasing dramatically. In […]

Read More…

Understanding The New Middle Class Consumer

What does a modern, informed teenager from São Paulo have in common with his New York counterpart? Probably more than with another teenager from his own country but from a smaller city like Manaus, the capital city of the state of Amazonas and Brazil’s seventh largest city. Ethnographic studies show that culture and consumer behavior across the world capitals are more comparable than within a country’s capital and its second- and third-tier cities. This does not suggest that the average, middle class teenager from Manaus has everything in common with another from a place like Hyderabad (India), Chongqing (China), or […]

Read More…

Poverty Eradication In Emerging Markets

The economic boom and the subsequent double-digit GDP growth achieved by some of the world’s emerging economies, such as Brazil, India and China, have led many to believe that poverty, inequality and other associated issues could be eliminated even without government intervention or active participation. But a new report by ActionAid, a UK based charity organization, is somewhat startling and to some extent unexpected. In the report, released to coincide with UN World Food Day, ActionAid has listed a number of developed, less developed and developing countries based the efficiency of their programs initiated to give legal, constitutional and social […]

Read More…