Showing posts with label BRICS. Show all posts
Showing posts with label BRICS. Show all posts

Wednesday, 27 March 2013

Make strong foundation for BRICS


don't waste him

Rahul joins me for a pint of beer on Holi- the Indian festival of colours. He jokes and tells me that his life is not colourful. “ I want to go back to my home town to Darjeeling- I don’t like Delhi.” His friend Prabhakar agrees with him. They both work for Adidas as salesman.

Priya (name changed), a beautiful girl, also from Darjeeling works in a beauty parlour in South Delhi.  She probably has other sources of income, which she doesn’t want to divulge at this stage. She loves clubs and going out at weekends, but life is Delhi is tough.  She says, “ I have to stand the whole day,  and sometimes I am abused by the customers.  I don’t want to live here, but I need to earn. I want to educate my 9-year-old brother. I will do everything for him”.

Every year thousands of young boys and girls make their way to Delhi from the picturesque hills of the Darjeeling and also the north –east of India  hoping to get decent jobs.

Thanks to globalization: India’s booming retail industry and glitzy malls have given employment to many of them. “ We have the looks”, says Sanchita (name changed), who looks extremely smart in her mini-outfits.  “ We might be uneducated, but we know how to carry ourselves. We are easily employable. ” Sanchita’s bother is disabled, father is blind and her mom is often sick. At 22 she has to look for ways to support her family.

Darjeeling is known as the Queen of hills and is the home to one of the world’s most expensive tea, which contributes greatly to India’s exports. But unfortunately, the locals have benefited little from it. The tea is auctioned in Kolkata and drained out of the region much to annoyance of the local population. The locals have been asking for a separate state- Gurkhaland. The political demands have had fallouts- frequent strikes and bandhs have crippled the local economy. Tourism has been hit and the posh Anglo- Indian boarding schools no longer attract students from the rest of the country.

On a wider context, the suffering of the locals and lack of unemployment in some of India’s most scenic regions shows how exclusive India’s economic growth has been.

In many ways, the rising prosperity of India’s cities has given rise to a host of serious social problems- human trafficking is one of them. Hundreds and thousands of girls from India’s troubled north-east are directly or indirectly into prostitution in Delhi alone.

As BRICS leaders cobble up in Durban to discuss the possibilities of setting up a BRICS bank to help sustain infrastructure and human development, we hope that such initiative will be duly accompanied by a vision to economically boost some of the backward regions and communities in each of the BRICS countries.

For India, the priority should be to look at human development issues, creating more economic opportunities across the country and improve its defunct infrastructure. Above all it needs to fight corruption to say the least.

Tuesday, 1 November 2011

Business lessons from the Indian Grand Prix


Major sporting events are no longer just about who won the match or who won the medals. Who hosted the event — “Formula 1 in India? You must be joking!” — can have a major impact on that nation’s image worldwide.

And when India did host Formula 1, on October 30 this year, that nation’s status was instantly ratcheted up several notches — globally.

This is yet another example of how emerging economies are increasingly bidding for major, prestigious global events.

Since the great success of the 2008 Beijing Olympics, mega sporting events have been travelling to new destinations, particularly to the world’s fastest growing economies of Brazil, Russia, India, China and South Africa (BRICS).(See table below)

From a public relations perspective, the lure of large and spectacular sporting events is often seen as an opportunity to also attract tourism and new investment. The sporting event becomes a platform on which to showcase the culture of the host nation. But the whole event becomes even more than that: it highlights the country’s arrival on the world stage.

The Formula 1 race in New Delhi generated huge international media attention, not just because of the global popularity of the sport, but because the arrival in India of the most expensive sport in the world also signalled that India had now come of age.

For global brands this was a wake-up call: India (and China too) has a growing middle-class with disposable income and they want to buy your goods, so tell them what you have to offer.

The success of the F1 race (against the background of shoddy preparations for the Commonwealth Games) offers instant PR and marketing lessons for foreign firms who want to break into India. Unlike the public sector — that handled the Commonwealth Games —private ventures in that country can indeed deliver world class standards. This flare of the private sector is further underlined by the active involvement of various Indian conglomerates in mergers and acquisitions overseas.

In terms of market demography the young Indian middle-class consumer is trendy, well-informed (due to a free media), cosmopolitan, and exceptionally open to global ideas and cultures (the first F1 race had around 120,000 spectators). It is a country where aligning brand with any truly global event really works.


It could be just a matter of time before there is massive hysteria and a major fan following for the Formula 1 teams, as already exists for the Indian Premier League cricket teams. India might even become the world’s largest market for F1 merchandise.

Marketing gurus should look behind all those depressing figures for literacy, poverty and poor infrastructure: India with its vast young population offers enormous opportunities. The nation of 1.2billion is likely to become the world’s third largest economy by 2030, if not before. However, to get a good slice of that pie, it’s important to get into the market right now — not the day after tomorrow. 


Mega sporting events in emerging nations
Destination
2008 Olympics
Beijing
2010 FiFa World Cup
South Africa
2010 Commonwealth Games
New Delhi
2014 Fifa World Cup
Brazil
2018 Fifa World Cup
Russia