|
   
|
Management jargon has just the word for it: choke-point (a term coined by a team of consultants from Bain & Company). Still, it's hard to describe an international (Net) gateway as anything but a choke-point. Almost 90 per cent of the Net (in terms of content) is resident in the US. Ergo, most traffic on the Net is international traffic, which requires an international gateway-a satellite or a undersea cable. Numbers put together by the National Association of Software and Service Companies (nasscom) indicate that India will need international gateways that can handle 10 GB by the end of the year. In 1999, the government stated that private companies could set up satellite-based gateways. And in July 2000, (submarine) cable-based gateways were thrown open. A slew of ISPs like Satyam, Mantra, Dishnet DSL, Caltiger, Spectranet, and BPLNET have made public their intentions to build satellite-based gateways. Still, only two ISPs have actually gone ahead and set up gateways. Plans abound, though (See In The Pipeline). None of these comes cheap. A two-MB link through a submarine cable costs Rs 44 lakh; the same bandwidth through a satellite costs Rs 22 lakh. However, not all ISPs need to make a rush for international gateways. Bandwidth, at the end of the day, is a commodity, which companies can choose to buy off the shelf from resellers. That, for the uninitiated, is what a b2b model will look like. Pooja Garg E - C O M M E R C E
Nowhere is the non-resident Indian (NRI) more revered and loved than back at home in India. He's of particular pride to his relatives, because he not only represents the more successful scion of the extended clan, but he's also the one who every year returns home bearing gifts: a pair of Nike for his nephew, Johnnie Walker for the father-in-law, gap jeans for the niece, and Poison for the mother-in-law. But now, the Jalandhar bibis and Mylapore mamis aren't having to wait a whole year or two for the goodies to arrive. It's coming-over the Net. Explains Rohit Verma, 38, vice-president (marketing), Rediff: ''The Net is increasingly being used by NRIs to send gifts to relatives and friends in India.'' And gifts, in the case of an NRI, could range from a simple bouquet to a car (Ford Ikon) to a DVD to real estate. All of it given away at the click of a button. For instance, Ford India has sold seven Ikons to NRIs for gifting it to their relatives in India. Says V. Sivaramakrishnan, 35, general manager (marketing), Ford India: ''The Net allows us to make a connection with our target audience, which is young, innovative, and tech-friendly.'' This phenomenon is more popular in South India, which exports more techies than other parts of the country. Sites like hyderabadbazaar.com, chennaibazaar.com, dikshagifts.com, and uphaar.com specifically target the NRIs and accept all kinds of international credit cards. Consumer durables are other hot items flying off the portals. LGezbuy, Korean company LG Electronics' on-line purchase facility, reports 17 per cent hits from NRIs even without making an effort to market to them. Air-conditioner company Carrier Aircon plans to follow suit and accept Net bookings from NRIs. All that these companies now need is a large-hearted Sandeep-oops, Sandy-in 'Frisco. Vinod Mahanta B R A N D S For a product as prosaic as a pen, the hype that is going into its marketing is almost of epic proportions. From serious scriptwriters to slinky VJs to Bollywood hunks, everybody's in the do, pushing 'transparent' pens to 'stepney' pens to 'khushboowalla' pens. If there are mega bucks flowing into the promotion of pens, it is because the industry-estimated variously to be worth between Rs 500 crore and Rs 1,000 crore-is growing at a clip of 35 per cent annually. ''The new trend was long overdue for the ballpen segment,'' says Rajesh Drolia, 39, Chairman, Today's Writing Products, which has roped in Hrithik Roshan to lend his autograph to all its pen brands. The tactic of using celebrities to endorse an otherwise unremarkable product-line was kicked off by Rotomac Pens. Bollywood actress Raveena Tandon was its first star sign-on, and was soon joined by scriptwriter Javed Akhtar. A few months ago, Luxor Writing Instruments-a joint venture with Gillette-launched its Papermate brand with much fanfare. Its television spots featured popular VJs including Malaika Arora and Laila Rouass. The industry adspend? An estimated Rs 50 crore, of which Rs 10 crore comes from Today's alone. Is all that money worth it? Yes, says Drolia, pointing out that ''it helps communicate product benefits''. Not all agree. ''It can certainly build up brand awareness, but brand preference?'' asks Sunil Charla, 42, Managing Director, Stic Pens. After all, pen sales are impulse-driven and excitement has to be generated in a number of ways. Which is why, feels Charla, players in the market are bringing in unique features. For instance, gel pens are beginning to go down very well with the consumers, just as pens with cartoons. This has made Stic Pens use Disney characters, just as Today's is pushing its Stepney benefit on an extra-refill platform. So long as the advertising doesn't turn the ink on its bottomline red, the industry is willing to sink top dollar into brand promotion. Shamni Pande C R E D I T C
A R D S
In retrospect, growing a market from zero to 2.2 million may have been easier. For, having crossed the magic figure of two million, credit card companies in India are realising that it's going to be an uphill task from here on. That's not just because the average Indian is still credit-averse. Rather, the challenge lies in spurring spend per card and reducing defaults to a minimum. Add to that the problems of geographic spreads, lax regulations, and poor infrastructure. Yet, the plastic-money business-which boasts of an annual card spend of Rs 7,000 crore-has been working on a slew of initiatives. For instance, since 1989, Mastercard International-sponsored India Cooperation Committee has been building up a database of delinquent customers. Called the Negative File project, it's the industry's first initiative to share information across member banks so that more informed credit decisions can be made. Says Deepak Soota, 47, Managing Director, Easynetcom (card authentication firm): ''This is an important move that will help grow the card market.'' Along with Citibank, MasterCard has launched a card for the Indian market with low credit limits. Called MasterCard Electronic, it puts the power of plastic money in the hands of hitherto untapped segments like teenagers and lower income groups. e-Commerce is another potentially huge segment that card companies want to tap. Citibank has launched a virtual card to facilitate on-line transactions. And now, MasterCard International, Siemens, and Brokat plan to introduce the world's first complete mobile-commerce system. Says Samir Vakil, 37, Country Manager, MasterCard International: ''We recognise the unique payment needs of the Net and are working towards bringing increased convenience, flexibility, and security to on-line transactions.'' Card companies are also roping in big-ticket establishments to claim a share of the regular household expense. For example, Citibank has tie-ups with the Mahanagar Telephone Nigam Ltd and the Indian Oil Corporation for payment of telephone bills at the latter's petrol pumps. Also, those who buy fuel using their credit card get special bonus points. There's consensus that such moves could make plastic money more fashionable. Says Vijay Mehta, 57, Chief Consultant, Credit Card & Management Consultancy: ''Credit cards are emerging as the centre-piece of banking and personal financial relationships.'' And it might just be helped along by the emergence of e-technologies. Vinod Mahanta
|
|
Issue Contents Write to us Subscriptions Syndication INDIA TODAY | INDIA TODAY PLUS | COMPUTERS TODAY © Living Media India Ltd |
 |
 |
