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Monday, June 13, 2011

Indian Brands: Are they responsible for lagging behind their counterparts?

Lately it so happened that I switched to Sanskaar and Aastha Channel. Baba Ramdev was giving his speech on Bharat Swabhimaan and Swadesh. He was in the best of his enthusiasm and convincing mood. I too got motivated and charged up enough! The patriot in me woke up, and decided to use products made solely by Indian Brand. Shahrukh Khan once said “Itni Siddat se maine tujhe pane ki jurrat ki hai… ki saare zamane ne tujhe mujhse milane ki shararat ki hai” The other day I got a mail from friend, listing all Indian products in daily use. A blind needs two EYES! I took the printout and pasted on the front wall of my room. The co-operative shop was in front of my apartment. Charged up with Patriotism, I went inside the Co-operative shop and purchased Blades, Soaps, Detergent, Tooth paste, Shaving cream, face cream, etc. all from Indian Brand. With the same motivational charged up state of mind, I started using them. But you know, there is a difference between ‘being passionate’ and ‘being experienced’. An old man is always called wise and obeyed than an emotionally charged youth. Once the fever of nationalism was down, I started comparing the products I purchased, with their MNC counterparts. The Supermax and Topaz blades I took, was no way compared with Gillete and 7’Oclock blades. The Indian bathing soap has now become toilet soap. Somehow surf came out good, so I am still using it. I am heck of the taste of toothpaste, but the 200 g has to be consumed. Couldn’t help it still consume, in the name of taking value for the money spent. Shaving cream- though I wanted to throw out of window, but couldn’t do, so gifted it to security guard. Face cream that I used did a lot of happening on the face. So I decided to use it rather as skin cream. Similar was the fate of other products. You can very well ask why I didn’t throw them out when they were so bad. Answer is simple. I invested money on that! Have to recover it either way! I am not like sons and daughters of Jindal’s or Tata’s or Birla’s. I earn money and know the value of a single penny. I wish I could have billions of dollars in Swiss banks!

Now that the patriotic fever is gone and I tore that paper pasted on front wall, the inquisitive me started thinking of reasons behind such a big gap in brands. Why MNC’s and their brands are more successful and effective in giving what they promise. Why Indian brands are failing? We have companies like Tata. Dabur, Himalaya, Jyothi Laboratories, etc. who are successful in keeping the quality and brand value, but major Indian companies fail to deliver what they promise. After a great self brainstorming, I concluded on three reasons.
1. Lack of proper R&D facility,
2. Loss of focus from customer’s requirement and
3. Greed for quick money.

Most of the companies fall in all three categories. Investment on R&D and product development is called a future investment. Some intentionally bypasses R&D investment to increase profit margin. Some do keep R&D division as a functionary to save various taxes, but don’t do actual R&D activities. On the other hand MNC’s have good money, so they invest good amount on R&D activities to ensure bringing new products for market. Also a high level of expert team is there to project the demand and to understand customer’s requirement. A new trend is coming up. MNC’s are brilliantly pushing new products into markets and provoking its demand among customers! Some examples are After Shower, Mouth Wash, Face wash, Revive, Chocolates, Cold Drinks, Hair Colors etc. Such products are not in necessisity list, but MNC’s market it in such a beautiful way, it creates its place among every house. I must say TV’s and Cricket/Bollywood Stars are helping a lot in ensuring millions USD profit for these MNC’s. Who is a sufferer? Common Man! A common man is a victim of anything and everything. A common man works hard and earns money. On the money he earns for himself and his family, he pays a direct tax to government for its own safety (payment to all government officials) and welfare (infrastructure and other developments in society and nation). Story doesn’t end here. A common man has to pay Tax for Entertainment, Food, Medicine, Purchase, Travelling, Road, Water, Education, VAT etc. in the name of Indirect Tax. If all taxes are calculated, a common man pays 60-70% of his/her money in tax. What he/she gets? Nothing! Some mental satisfaction and happiness for family – that too for some time only! Jokingly I say sometimes, if ‘Fair and Lovely’ is so effective, A Buffalo could be converted into Cow! If not White Buffalo, at least a Grey Buffalo! If skin creams are so effective against Sun, it should be distributed in African countries! Cosmetics have entered in such a big way; it looks like all FEMALES have become a slave of it. They can’t take a single step out of her house, without applying cosmetics!

Indian Companies seems, have lost their identity in the RAT Race! They always live in the fear of ‘big fishes eating smaller fishes’. So they cater into low end market. Every business has a single motive – PROFIT. So, in the struggle of survival, Indian companies do forget to cater and deliver the quality. They intend to utilize cheaper resources to cut down cost. Suffice to say, they forget to see the long term consequences, in the tug of war of survival. The short vision and short term goals lead to inferior quality, and slowly throwing them out of competitions.

Problem doesn’t end here. Government of India cannot shed its responsibility. Unless Indian Start-ups and companies are supported by Government’s assistance- financially/R&D support/Policy revisions etc. they cannot compete with MNC’s. Government keeps a close eye on Indian companies, and willingly allows MNC’s to grow. MNC’s fund their election rallies. MNC’s provide them best of facilities, why would they think of Made in India products and common man? So it's a complex issue for breaking head. So ultimately I decided to be partially patriotic. Made in India by Indian companies Products which are of good quality and cost competitive will get my thumbs up. But I won’t compromise on quality! After all, I too want to glow like Shahrukh Khan and smell like John Abraham! It’s my bad luck, they give their time and energy for branding foreign companies products!

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