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BT
DOTCOM: COVER STORY
Chasing The NRI
Rainbow
They are sites with an accent-and a
penchant for smelling NRI dollars. But to survive, they will have to
continuously innovate to meet the demands of a fickle, high-stakes market.
By
Pooja Garg with Additional
Reporting By Aparna Ramalingam
Take a
prosperous serving of ethnicity, pepper it with nostalgia, wrap it up with
services, and wash it down with news from home. On the fourth of July this
year, the desi diaspora toasted the fireworks in Frisco's Bay Area with
salted corncobs (sorry, bhuttas), courtesy thinkindia.com. In nearby la,
eIndia.com offered T-shirts and other hand-outs. A Summer Of Chai is how
chaitime.com dubbed its branding exercise, which involved going out to the
colleges and meeting up with Indian students, and even organising
Chaisingles, a singles' party. Closer home, sify.com recently picked up
indiaplaza.com, an India-specific on-line shopping mall. And so on.
Call them sites with an accent, or the
non-resident Net phenomenon, the non-resident Indian, or NRI, is being
wooed with a vengeance by basic information hubs to community-building
arenas to e-commerce sites, be they based at home or in the US. Their holy
grail is to become the Indian version of starmedia.com for Latin
Americans, and china.com or sina.com for the Chinese. The stakes are high.
''There is a niche area, but only one US-based NRI site will survive.
It'll be a bloodbath,'' deadpans Mohanbir Sawhney, McCormick Tribune
Professor of e-Commerce and Technology, Kellogg Graduate School of
Management.
While there are 18 million NRIs the world
over, most of the action is focused on the five million-strong US diaspora.
It's a prosperous-and Net-savvy- segment. According to Forrester Research,
69 per cent of Asian-American households are on-line, compared with 43 per
cent of the general population. Though most US majors did talk about plans
to set up UK offices, Cool Britannica is a low priority. Avers Dhruv
Sharma, 40, CEO, 123india.com, which claims NRIs account for 45 per cent
of traffic: ''The internet has been US-driven. The Net in UK is not much
older than in India.'' Traffic from the Middle East has been
disappointing, but some see great potential in Singapore and Southeast
Asia.
Be it in the US or elsewhere, the challenge
for these sites is to meet the implicit needs of a diaspora. That's easier
said than done when, the target audience begins its day in another land.
An information overload makes it tougher, considering most NRIs are not
compulsive Indian news and information junkies. So, these sites have to
innovate to meet the needs of a community. And make money while doing so.
BT looks at how domestic and US sites are facing up to the challenge.
A Community For Content
The
NRI biggies |
chatime.com:
Trying to build a community experience, and sees advertising as the
main revenue stream |
eindia:
Focus on news; has been looking at on-line ticketing and events as
major revenue streams |
thinkindia.com:
emphasis on news and information; is in beta mode; promoted by a
clutch of NRIs |
namaste.com:
A premier on-line retailer of Indian products in the US; promoted by
Kleiner Perkins |
rediff.com:
Focused on Indian netizens, but plans to acquire an on-line presence
in the US |
Sify.com:
Strong on NRI gifts to India; has picked up pace thanks to its
acquisition of IndiaPlaza.com |
123india.com:
Draws in users to its India directory, but has not kicked off its
e-Commerce plans |
Par for the course: local community news,
information on prominent NRIs, immigration, India-specific events, shows
and, of course, Bollywood. Most sites claim they have a USP. For instance,
eindia's ethnic content is uploaded thrice a day. Chaitime focuses on
community and finds its main draw in the chatroom. ''We offer the NRIs an
interactive area to reach out to others in the community through chat and
other activities like story-telling,'' says Jayesh Vaidya, 36, MD,
chaitime.com. Apart from offices in the US, most big US-based sites have a
small office in India, from where they source local content. For instance,
thinkindia, with offices in San Jose and New Delhi, has a eight-member
team in Delhi, and 12-plus stringers in the US for local news.
Mirroring the industry, content
arrangements are not an issue for these portals. But it's not that easy
the other way round. Rediff.com's ambitious plans to hire journalists from
Columbia University came a cropper; the US edition is manned by a few
stringers. Now, Rediff is planning to acquire a US-based website in order
to get the infrastructure and content providers to feed the edition.
Sify.com, on the other hand, has the advantage in samachar.com, which it
claims 2,50,000 NRIs have made their homepage. Another early mover,
123india.com, is building on its India search engine. ''The NRI is a more
content-driven segment,'' says Dhruv Sharma.
There is no end to useful and innovative
content. Thinkindia.com, for instance, has a section, new to US, which
informs immigrants how to get a social security number, or how to open a
bank account, and so on. ''We help NRIs get adjusted in the new environs
through useful information and NRI-concentrated city-specific news,'' says
Gopal Krishna, 32, CEO & Co-Founder, Thinkindia.com. Similarly,
123india.com has tied up with Janu Corp, prominent immigration lawyers, in
a conscious effort to tap the NRI segment. But that's just the tip of the
iceberg. Says Sawhney: ''Sites should focus on identifying content that
will help in, say, how we bring up our children, language education, even
religious education.''
There are other possibilities. Studies
reveal that a large number of NRI housewives surf from home. Some sites
are looking at introducing employment placement services. Then, of course,
there are the numerous match-making avenues like matrimonials.com,
indianmarriages.com, suitablematch.com, and so on. While there is a niche
area in this segment, and the attractions are obvious, these sites can
only play a secondary role to the newspaper classifieds, be they at home
or abroad. ''Some 35-40 per cent of the traffic comes from NRIs. Of our
29,000 listings, 25 per cent are those of NRIs,'' says Amit Tandon,
Director, 37, Jeevansathi.com. Even so, it's not a big need, and it's not
unmet.
Most sites targeted at NRIs list
advertisements as their key revenue source, followed by e-commerce. ''NRIs
are easy to reach since they are in small pockets in the US-and not
scattered like in India. So, advertisers see great potential in reaching
them through us,'' says Vaidya. Though the US on-line advertising market
is mature compared to India, advertising tends to sites that have traffic.
Admits eindia's veep (Worldwide Operations), Sonu Malhotra, 29:
''Advertising is not a viable enough revenue stream. And e-commerce is
still a couple of years away.''
Yes, And Now To Commerce
Most e-commerce on Indian portals has its
genesis in the NRI community. After all, they are well-to-do and seek desi
products. At one level, they buy desi products like Tanjore paintings,
sweets and Indian groceries, sarees and embroidered kurtas. There is also
the element of gifting to relatives and friends in India, with electronic
gadgets, watches, and books topping the list.
Is ticketing a viable alternative?
Recently, eIndia tied up with Maazda Travel, an Indian travel agency in
la. This has helped the site offer what it claims is the lowest fare to
India-$899. Then there's event-management. ''We also offered tickets for
the hugely-popular Shahrukh Khan shows. The first day itself, we sold some
25,000 tickets for the show. Now, we've got rights for the A.R. Rahman
show, and recorded sales worth $30,000 the very first day,'' says Malhotra.
Event-management could drive revenues for sites in the short-term.
Then there's flowers. Yup, flowers.
Dikshagifts.com, a gifts site based in Calcutta, promises to deliver cakes
and flower all over the country through its franchisee network. ''Priced
at $17- $25, flowers yield a large margin of up to 25 per cent,'' says
Vidul Prothi, 26, CEO, Dikshagifts, adding that they have broken even.
Similarly, Chennaibazaar.com-which says 95 per cent of its traffic is NRI-based-says
that 75 per cent of their revenue comes from flower delivery. Started
about two years ago with an initial investment of around Rs 20 lakh, the
site broke even some six months ago. Music is another popular category,
with sites like india-today.com and saregama.com leading the way; the
latter has warehouses in the US and UK.
There is a lesson to be learnt here. With
customer experience being the key to success, the problem is that the
supply chain is all 'mucked up'. Adds Sawhney: ''The biggest challenge is
to build direct relationships with suppliers in India.'' He should know,
being on the board of namaste.com, which is working overtime to build
bridges with Indian suppliers and to make to supply chain more efficient.
Until that happens, the NRI sites will not be able to aim for a bigger
market: in this case, one not divided by ethnicity. After all, all things
considered, Victor Menezes eats as much saag as you do.
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