On 01/14/2012 09:53 PM, [email protected] wrote: > On Saturday 14 January 2012 19:26:43 Rony wrote: >> On 01/14/2012 03:04 PM, Binand Sethumadhavan wrote: >>> On 13 January 2012 21:24, Rony <[email protected]> wrote: >>> >>> Rony Rony... you really need to brush upon a lot of things. >> Binand dear, the feeling is mutual. >> >>> 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. >> I think we are both very clear on what we mean by branded and unbranded. >> >>> 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. >> Nirma was not an unbranded soap product. What you get on the roadside in >> traditional markets and in loose quantity is unbranded or poorly >> supported brands. The poor have to buy them because they do not have a >> choice. What happens to one's skin after prolonged use of these roadside >> chemicals is a different matter altogether. > You are mixing up a whole lot of stuff with assumptions that have absolutely > no basis in facts. Maybe you should look up the additives in branded washing > and cosmetic products.
The branded ones can at least be pulled up for wrong doing as they are bound by licenses, laws and customer goodwill. The unbranded don't have anything at stake. > Regarding food, it all depends on local knowledge. The best eating is in the > small joint tucked away in a corner, run by passionate folks. Not some t & > barista charging the moon for rot broth. My reference is only to hygiene and quality of food. On the taste front, I completely agree. > I have eaten the most tasty and memorable food at unknown joints in the > middle > of nowhere. Agreed. >>> 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. >> High duties and taxes push up prices of branded products. The grey >> market for branded and unbranded products takes advantage of this >> factor. If branded product prices fall, it will be better for the lower >> end customers to get good quality at affordable prices. > We are not talking of grey market. Merely (as Binand correctly states) lesser > known brands. Cheap unknown China mobiles were not imported and sold legally. They were being sold in grey markets with no warranty or support. Unless a brand, however small accepts responsibility for its products, it should be called unbranded for practical reasons. >>> 3. The same guy will buy branded products when his economic >>> compulsions ease away. >>> >>> That is b.s. and most marketing professionals know it. >> So if it does not agree with you it is bs. Good. >> >>> 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. >> Being price concious does not mean we are looking for cheap crap items. >> We want the best at the lowest price. > So what does a known brand add that a lesser known brand does not? Again the argument is between branded and unbranded, nothing else. A known brand always has the advantage of being tried and tested by people for a longer time. A lesser known brand has the opportunity to establish itself and get a good name in the future. Another factor is the amount of funds that are available to the brand for providing support to its customers. People will have more faith in a company that is plush with support funds. > It's the same argument about M$ and linux. By that standard, linux should be > crappy. Linux is not unbranded. It is backed by dedicated developers as well as big organisations. This argument does not work here. > But coming back to electronic goods. ALL (yes you are reading that correctly) > passive components and nearly 90% of semiconductors are fabbed and > encapsulated in China. The "branded" stuff that you see use these components. > They have the same pre shipment rejection rates as any other and the same > bathtub failure curves. I know of many who have brought "branded" stuff and > got screwed. I am not singing praises for branded stuff, I am only saying it represents better quality and confidence of the customers as compared to unbranded stuff. Branded manufacturers at least have a sword hanging over their heads. > However in tier 1 and 2 cities the warranties (usually) coverup defects. In > the smaller towns it is an entirely different matter. > > >> So what? I buy a product worth thousands of rupees and pay a few hundred >> rupees as extended warranty ( not lots of money ) for up to 3 years >> which also has a replacement assurance in case of non repairable goods. > If you are layman that would be your insurance strategy. But if you are a > hardware guy, you would know better. I just want to buy a digital camera, mobile, microwave, TV, fridge etc. for my home or office and get peace of mind with extended warranties. I believe that is what many customers want. There are flaws in every thing but we have to choose the best way out. >> Better than shelling out a few thousand rupees again for repairs if any, >> after one year. It is a known fact that after the warranty period, you >> are at the mercy of the service center. It is even worse now with many >> directly imported products coming in the use and throw limited quantity >> category with no proper spares available post warranty. > Try getting a branded phone repaired. At least till its warranty or extended warranty period it will be the company's or supplier's responsibility. With an unbranded phone, there is no warranty at all. Once you step out of the shop it is your lottery. >>> 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. >> That's your opinion. >> >>> Research after research into >>> the Indian consumer behaviour says that we as a nation is extremely >>> price conscious, nothing else matters to us. >> It all depends on how one has burned his/her fingers after bad purchases >> at cheap rates or expensive branded purchases with no proper support >> from the brand. > That last para sums it up. > > While there are indeed a lot of bad products, A branded product is definetly > not worth the premium charged as a (mis) representation of quality. > I agree on the premium pricing part especially when the companies are cutting costs drastically by outsourcing but not passing on the benefits to the people. This is where lesser known brands (not unbranded) have the opportunity to establish themselves and build customer confidence as well as bring down overall prices. -- Freedom is a shared resource. Take some, leave the rest for others. Please trim your replies. Avoid cross posting to other lists. Post your replies below the relevant original text, leaving a line space. Regards, Rony. http://ronybill.blogspot.com/ -- http://mm.ilug-bom.org.in/mailman/listinfo/linuxers
