Click here to close now.

Welcome!

Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

The Global Consumer Economy Will Converge on "Paisa Vasool" -- The Indian Concept of "I Got the Perfect Mix of Value and Luxury Features"

Boston Consulting Group Research Shows That Businesses Will Need to Shift to Delivering Extreme Value -- Not Just in Emerging Markets but Also High-End Markets Like New York, London and Paris as Consumers Grow Even More Intelligently Frugal Than They Were

BOSTON, MA -- (Marketwire) -- 11/26/12 -- Holiday shopping retail winners will be those that deliver value and best features in one prized package, according to research from The Boston Consulting Group (BCG). "Cheap" or "Expensive" are no longer the watch words of success.

"U.S. and other developed market consumers are stressed to the limit. The majority are stating an intent to cut back their spending," said Michael Silverstein, BCG senior partner and co-author of "The $10 Trillion Dollar Prize: Captivating the Newly Affluent in China and India" (Harvard Business Review Press, October 2012). "You need to pry their money from their wallets with the best match of features and economy."

It is true in the emerging growth economies of China and India. Chinese and Indian consumers want a complete range of products and benefits packaged at a price point that sizzles with value. When Indian consumers experience the perfect mix of quality and value, they will often say "paisa vasool," "I got my money's worth." It is the highest praise, and, globally, it will become more relevant: Around the world, consumers' budgets are squeezed -- and they are growing more skeptical of promotional sales and worried about the future, according to BCG data.

"'Paisa vasool' can become the global watchword to creating greater value, offering more features for less money and attracting consumers who become your advocate," said Silverstein. "It is a concept that grows out of the natural frugality that characterizes many Indians and Chinese who grew up with little and often heard stories from elders of deprivation. They try to stretch incomes as far as possible -- and are quick to complain about and discredit a merchandiser for poor value, low quality or misrepresentation. They're also quick to endorse products and merchandisers that inspire 'paisa vasool.'"

Reality of Sluggish Recovery in West Ups Demand for New Kind of Low-Priced Goods

He added, "This may have been an emerging market concept, but 'paisa vasool' is demanded in New York, London, Paris and nearly everywhere else in the West. Low-priced goods with deep, rich features will become the fastest-growing segments of all markets as consumers everywhere struggle to make ends meet. Our consumer research suggests that the true tragedy of the financial crisis -- and the likelihood that there is not going to be a strong recovery anytime soon -- is finally dawning on consumers and altering spending patterns."

According to a recent BCG survey fielded in conjunction with "The $10 Trillion Prize," 91 percent of consumers in the U.S. and U.K. said they are planning to spend less or not increase spending in the next year. (In contrast, 40 percent of Chinese consumers said they will spend more.) Fewer than a quarter of Americans and U.K. residents said they believe their children will have a better life than they did, and only 27 percent of Americans and 21 percent of U.K. residents believe there will be a full economic recovery.

Paisa Vasool Examples

The recipe for consumer business success is extreme value. There are, according to BCG, "paisa vasool" success stories in China and India that translate to or can be instructive for Western markets...

  • In India, Godrej Group has a powdered hair dye packaged in three-gram containers that sell for 15 cents. The company sells the product in 1.1 million retail outlets and has 65 percent share of the hair dye market.
  • In China, Coca-Cola sells the "RMB 1 Coke" in smaller, lower-tier cities. Coca Cola is now the largest beverage maker in China and has a 25 percent market share.
  • Tingyi's Master Kong instant noodles deliver the Chinese market a superb combination of price and quality -- great taste, a variety of flavors (customized by regional preference) at a low price, 40 cents (versus 65 cents charged by a competitor).
  • India-based Mahindra & Mahindra's SUV for the global market, the Scorpio, costs half as much as competitors but offers a full range of features and styling.

"Paisa vasool" can apply across all consumer needs and categories. Examples in Western markets include: the Toyota Corolla (going back to the early 1970s), Hyundai, Swatch, Costco, Family Dollar, Ikea and McDonalds.

Paisa Vasool Strategy: No Mean Feat

"A 'paisa vasool' strategy is much more complicated to develop and execute than it seems. It requires a combination strategy -- one that delivers the right manufacturing capabilities, a retail network with broad distribution, innovation in ingredients, creative packaging that yields gross margins and the ability to move fast," Silverstein said.

The "magic" of "paisa vasool" involves, among many other things...

  • Having a set of high-velocity stock-keeping units that earn a disproportionate share of category profitability.
  • "Screaming" value and defined benefits at the point of sale.
  • Leveraging local suppliers when searching raw materials.
  • Driving five percent or more productivity improvements at the product level every year.
  • Stripping out all unnecessary packaging materials.
  • Reaching even the most remote markets.

"'Paisa vasool' is the hottest spot in consumer markets because it thrives in the 'more want and have less' reality," Mr. Silverstein said.

For more information, please go to http://www.bcgperspectives.com/10trillionprize.

To arrange a conversation with one of the authors and/or receive a copy of "The $10 Trillion Prize: Captivating the Newly Affluent in China and India," contact Frank Lentini of Sommerfield Communications at (617) 939-9094 / [email protected].

About The Boston Consulting Group

The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 77 offices in 42 countries. For more information, please visit bcg.com.

About bcgperspectives.com

Bcgperspectives.com is a new website -- available on PC, mobile phone, and iPad -- that features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back almost 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed via PC, mobile, iPad, Facebook, Twitter, and LinkedIn.

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and sim...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carriers, thus providing a global perspective of the end-user experience. Site24x7 supports monitoring H...
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-critical systems. ISS has completed many successful projects in Healthcare, Commercial, Manufacturing, ...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
VoxImplant has announced full WebRTC support in the newest versions of its Android SDK and iOS SDK. The updated SDKs, which enable audio and video calls on mobile devices, are now compatible with the WebRTC standard to allow any mobile app to communicate with WebRTC-enabled browsers, including Google Chrome, Mozilla Firefox, Opera, and, when available, Microsoft Spartan. The WebRTC-updated SDKs represent VoxImplant's continued leadership in simplifying the development of real-time communications (RTC) services for app developers. VoxImplant (built by Zingaya, the real-time communication servi...
SYS-CON Events announced today that Tufin, the market-leading provider of Security Policy Orchestration Solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. As the market leader of Security Policy Orchestration, Tufin automates and accelerates network configuration changes while maintaining security and compliance. Tufin's award-winning Orchestration Suite™ gives IT organizations the power and agility to enforce security policy across complex, multi-vendor enterprise networks. With more than 1...
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business application (BYOA) platform, and workflow automation system.
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables cloud service providers and enterprises to build reliable, affordable and scalable cloud storage solu...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from ...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.