On 13 January 2012 21:24, Rony <[email protected]> wrote: Rony Rony... you really need to brush upon a lot of things. Let us take the things you say one by one, shall we?
1. Buying cheap unbranded products out of economic compulsions cannot be used as a justification for unbranded products. First of all, remember that there is no such thing as an "unbranded product". What you mean is a "less-known brand product". And yes, the fact that people buy such products IS a justification for their existence. Nirma came up with a product in this category that was a good 40% cheaper that Surf and shook the foundations of HLL's Indian empire. All over India, less-known local brands compete on even terms based on price with national and multinational brands. 2. A problem with electronic goods in India is that in the official route, the taxes and duties are quite high. TVs of top brands are available at much lesser rates in China than in India. I did not even understand what you were trying to say here. How does it matter that a TV is cheaper in China? I cannot buy it there and watch it here. 3. The same guy will buy branded products when his economic compulsions ease away. That is b.s. and most marketing professionals know it. Ask anybody in this profession and he/she will tell you that "Indians are among the most price-conscious people in the world". You can see application of this knowledge in our TV commercials - noticed the one where the guy inspects a luxury yacht and then asks "kitna deti hai?" Our advertisements are always focused on price comparisons, discounts, free gifts etc. (ie, all price-related attributes) - because in a lot of cases, price is the single variable that swings a purchase decision. 4. Croma is a brand which backs its products with 3 yar warranties. It is all about how deep is Mr. Tiwari's pocket. If he has his own website and is famous in the town side, he will buy a top branded TV and even send it to his village. Again, b.s., or common wisdom says the opposite. Please don't throw tidbits as if you know them as truth. Croma does not back the products it sells with 3-year warranties - the original manufacturers do so. Croma *sells* extended warranties which costs a lot of money (let us skip Croma's private label for the moment). Now, most people will say "No" to the extended warranty because of something that can be quantified as "Annualized Loss Expectancy" or ALE (http://en.wikipedia.org/wiki/Annualized_loss_expectancy). This is basic human intelligence at work. 5. Another factor that could make people move towards cheaper products is the lack of proper support by big brands in smaller cities as compared to the metros. You are completely off the track here. Research after research into the Indian consumer behaviour says that we as a nation is extremely price conscious, nothing else matters to us. Binand -- http://mm.ilug-bom.org.in/mailman/listinfo/linuxers
