Category Archives: Business

There is no place to hide it in India

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The New York Times today examines Playboy’s designs on India in greater detail. In order to penetrate the Indian market they must tread carefully. There definitely isn’t going to be any kissing on the first date but I’m sure the end goal will remain the same.

…there is another story behind Playboy’s discovery of India. The magazine once saw itself as America’s gateway to a sexual revolution. Now, with that revolution won and its societal impact fading, Playboy has a chance to renew itself as a magazine of high living in a country that celebrated sex in antiquity, then grew prudish, and is now loosening up again.

Ms. Hefner has said that an Indian version of the magazine “would be an extension of Playboy that would be focused around the lifestyle, pop culture, celebrity, fashion, sports and interview elements of Playboy.” But the magazine would not be “classic Playboy,” she warned. “It would not have nudity,” she said, “and I don’t think it would be called Playboy.”

In the U.S., Playboy Magazine’s fortunes have been declining for quite some time because their content isn’t considered “daring” enough anymore. Americans aren’t really shocked by anything on the pages of Playboy when compared to its raunchier competitors. If they want to find success with this magazine in India I would think that the name “Playboy,” and all the heritage the name carries, would help it compete with Maxim India and some of the filmi magazines which are already fairly risque. If there is no nudity then what can Playboy offer besides its brand name? Therefore, it makes no sense to me why they would name the magazine something else in India except to fool the censors.

Indian law prohibits the sale or possession of material that is “lascivious or appeals to the prurient interest” and that is without redeeming artistic, literary or religious merit. Soft-core pornographic magazines are available in India, but are taboo. They lurk behind other publications at newsstands, available only by whispered request. They also attract few lucrative advertisers.

“There would only be a few brands that would look at these magazines,” said Paulomi Dhawan, who runs advertising for Raymond, a leading Indian apparel maker. “We would probably be more in the business or news magazines or the male-oriented serious magazines.”

There is another problem: if you are 26, living with prying parents, where do you hide your stash?

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Not even a mouse

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‘Twas the night before Christmas,
And all through the house
Not a creature was stirring
Not even a mouse…

All along, I thought desis were good at forming cliques. Actually, it turns out they’re good at click farming — hiring people to click ads on your own Web site to earn pay-per-click payments fraudulently.

The Jan. 2006 issue of Wired mentions this widely-disseminated ToI scare story from last year:

With her baby on her lap, Maya Sharma (name changed) gets down to work every evening from her eighth-floor flat at Vasant Vihar [in New Delhi]. Maya’s job is to click on online advertisements. She doesn’t care about the ads, but diligently keeps count — it’s $0.18 to $0.25 per click.

A growing number of housewives, college graduates, and even working professionals across metropolitan cities are rushing to click paid Internet ads to make $100 to $200 (up to Rs 9,000) per month… “It’s boring, but it is extra money for a couple of hours of clicking weblinks every day…” [Link]

Because search engines make their money whether the clicks are from legitimate customers or from scammers, they are only weakly incentivized to prevent the fraud. Those being ripped off: the small businesses who advertise.

Clicks are bought to boost number of hits for web ads or online advertisers who are not tracking user location. [Link]

Users are careful to avoid triggering anti-fraud algorithms by not clicking too often:

“I have no interest in what appears when clicking an ad. I care only whether to pause 60 seconds or 90 seconds, as money is credited if you stay online for a fixed time,” says another user. [Link]

Similarly, spammers are using image captcha farms in India — hiring people to enter the anti-spam picture codes which Web sites require to prove that you’re not a spammer.

Against this backdrop of outright theft, gold farming starts looking legitimate.

Related posts: Why isn’t gold farming big in India?, With a little help from my friends

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The Subcontinent Gardener

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Wired says a real-life Constant Gardener scenario has just begun playing out in India. New rules against generic knockoffs of Western drugs have emboldened pharmaceutical companies to use India’s poor as cheap drug testing guinea pigs (via Slashdot):

… multinational corporations are riding high on the trend toward globalization by taking advantage of India’s educated work force and deep poverty to turn South Asia into the world’s largest clinical-testing petri dish… trials account for more than 40 percent of drug-development costs. The study also found that performing the studies in India can bring the price down by about 60 percent…

… in March, everything changed when India submitted to pressure from the World Trade Organization to stop the practice and implement rules that prohibit local companies from creating generic versions of patented drugs…. the number of studies conducted by multinational drug companies has sharply increased since March. [Link]

There are attractions other than low cost:

“Doctors are easier to recruit for trials because they don’t have to go through the same ethics procedures as their Western colleagues,” Ecks said. “And patients ask fewer questions about what is going on… ” Companies are attracted to India not only because of the huge patient pool and skilled workers, but also because many potential study volunteers are “treatment naïve,” meaning they have not been exposed to the wide array of biomedical drugs that most Western patients have… [Link]

Ethical shenanigans aren’t restricted to just Western pharmas:

In 2004, two India-based pharmaceutical companies, Shantha Biotech in Hyderabad and Biocon in Bangalore, came under scrutiny for conducting illegal clinical trials that led to eight deaths. Shantha Biotech failed to obtain proper consent from patients while testing a drug meant to treat heart attacks. Biocon tested a genetically modified form of insulin without the proper approval from the Drug Controller General of India or the Genetic Engineering Approval Committee. [Link]

The saddest thing is that if the drugs work, the testers are unlikely to even have access to the drugs:

Since many pharmaceutical companies are developing the drugs for markets in industrialized nations, it is unlikely that India’s poor will have access to most of the new medicine. [Link]

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An Oriental Gives Up

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When an Indian television station insists on titling a finance program “Oriental and Occidental,” it is time for me to expend no more energy on protesting such terms’ use as racial descriptives. oriental.gif

I had thought that having American Heritage Dictionary recognize “oriental” as problematic was a step forward, but I suppose I can count on the thick-brown-skinned folks at CNBC-TV18 to maintain the status quo. Nonetheless, I will complain that the subject of the show doesn’t even seem relevant to the name; what does foreign investment in India have to do with that old binary of “Oriental” versus “Occidental”? Particularly when some of the global market gurus include non-Occidentals like Ayaz Ebrahim, the Asia-Pacific CEO for Asia-based HSBC. The explorers of the exotic East, at least when it comes to the international flow of capital, no longer are solely Caucasians.

The prompt for an economics writing competition when I was an undergraduate was something like, “Free trade contributes to peace.” I don’t know if that is true, but I would think that genuinely free trade — in contrast to the protectionist economies of 18th and 19th century imperialism, against which Adam Smith wrote — might erase some of the old ways of Orientalist thinking. Continue reading →

The heat of Night

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Director M. Night Shyamalan went retro last week by slamming the idea of putting out new movies on DVD at the same time they’re released in theaters. Perhaps that’s to be expected from a director who works in old-fashioned, well-crafted films which pay homage to Hitchcock.

Film studios make a huge chunk of their profits on DVD sales and are chafing at having to duplicate marketing campaigns, one for the theaters and another four months later for the DVD. Customers are asking why they can’t buy a movie when and how they want. Directors like Steven Soderbergh (Sex, Lies and Videotape, Ocean’s Eleven, Traffic) and entrepreneurs like Mark Cuban are banding together to experiment with the new biz model:

Soderbergh… announced last spring that he planned to make six high-definition movies for simultaneous release in theaters, on DVD and on pay cable… “The film business in general is using a model that is outdated and, worse than that, inefficient.” [Link]

Manoj don’t play that:

“When I sit down next to you in a movie theater, we get to share each other’s point of view… That’s the magic in the movies… If this thing happens, you know the majority of your theaters are closing. It’s going to crush you guys… If I can’t make movies for theaters, I don’t want to make movies… I hope this is a very bad idea that goes away.” [Link]

Actually, what we share is the top of your big freakin’ head blocking the screen and the Goobers the kid behind me keeps throwing into my lap. Sure, opening night at a blockbuster is fun, but otherwise, not so much. The movies are great, it’s the moviegoers I could do without.

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Bhutan’s Gross National Happiness

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Many countries look at their Gross Domestic Product (GDP) as a measure of how strong their economy is and whether it’s expanding or contracting, but also to give an idea as to the standard of living in the country:

GDP is defined as the total value of final goods and services produced within a territory during a specified period (or, if not specified, annually, so that “the UK GDP” is the UK’s annual product). GDP differs from gross national product (GNP) in excluding inter-country income transfers, in effect attributing to a territory the product generated within it rather than the incomes received in it…

The most common approach to measuring and understanding GDP is the expenditure method:

GDP = consumption + investment + exports – imports… [Link]

Blah Bla Bla Blah Blah.  I’m not freakin’ Alan Greenspan and I’ve never taken an economics course in my life.  What else you got?  The New York Times reports on Bhutan’s economic indicator of choice.  It is a measure that in my opinion is ready for export.  The GNH, or Gross National Happiness:

What is happiness? In the United States and in many other industrialized countries, it is often equated with money.

Economists measure consumer confidence on the assumption that the resulting figure says something about progress and public welfare. The gross domestic product, or G.D.P., is routinely used as shorthand for the well-being of a nation.

But the small Himalayan kingdom of Bhutan has been trying out a different idea.

In 1972, concerned about the problems afflicting other developing countries that focused only on economic growth, Bhutan’s newly crowned leader, King Jigme Singye Wangchuck, decided to make his nation’s priority not its G.D.P. but its G.N.H., or gross national happiness.

Bhutan, the king said, needed to ensure that prosperity was shared across society and that it was balanced against preserving cultural traditions, protecting the environment and maintaining a responsive government. The king, now 49, has been instituting policies aimed at accomplishing these goals.

Their economic theory isn’t that far out is it?  I am not naive enough to think that they’ll get the prize later this week and am not ready to declare that I am moving to Bhutan, but why not consider the merits of this idea?  Every economic statistic thrown at you about a given country might tell you that the population as a whole is becoming wealthier.  That doesn’t mean that the lives of individuals are any better in terms of quality or happiness does it?

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Roll bounce

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Forbes magazine says audiophiles are apeshit over a cheap, $30 amp which sound as clear as high-end competitors. It’s the audiophile version of Two-Buck Chuck:

… the T-Amp was nothing to brag about, just a… battery-powered amplifier that hooks up to chintzy cardboard speakers. A firm called Sonic Impact Technologies introduced it to no acclaim in 2003. Then orders suddenly took off last fall, surging from a hundred to a thousand units a week…

… audiophiles were raving about the T-Amp on the Internet, claiming this tiny plastic wedge produced music as sweet-sounding as amplifiers costing thousands of dollars. The customer had “hooked it up to an $18,000 pair of speakers and a $6,000 CD player,” Bracke says. A reviewer on a Web site in Italy called the T-Amp the most amazing product in 25 years. And an online cottage industry had sprung up around the T-Amp, with companies such as Red Wine Audio, in Auburn, Massachusetts, stuffing the electronic guts of the plastic amps into sleek metal cases and selling them for up to $1,200… [Link]

The secret to this amp is an innovative audio chipset designed by an entrepreneur named Adya Tripathi. Is he the new Amar Bose?

Tripath’s founder, Adya Tripathi, figured out a way to make a digital amplifier that produces very little distortion. Tripathi, a Ph.D. in electrical engineering and a veteran of National Semiconductor, Advanced Micro Devices and IBM, found that part of the trick involves pulsing on and off at far higher rates–millions of times per second… Tripath’s higher pulse rate creates more chances to offset signal distortion by applying feedback… The T-Amp uses Tripath’s lowest-end chip… which puts out 15 watts of power and costs $3… [Link]

Tripathi is from Benares:

The advance comes from a little chip produced by Tripath Technology Inc., a 150-employee company in Santa Clara, Calif. It was founded in 1995 by Adya S. Tripathi, a 48-year-old engineer from the holy city of Varanasi… Before taking the company public… Tripathi secured $50 million in funding from such high-tech heavyweights as Cisco Systems Inc., Intel Corp. and Texas Instruments Inc. [Link]

This is when I expect a certain mutineer to roll into Adya uncle’s office as a long-lost relative and then bounce, saying goodbye to the sucka mutineers who fly economy

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An Angle too Conventional

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himanshu bhatia.jpg WeÂ’ve received a few tips (Thanks, Mytri and Brimful!) about an article entitled “A Flair for the Unconventional”, which ran in the New York Times on Sunday. Following your links, I expected to be slightly bored by something dealing with outsourcing or tech or consulting blah blah blah. I was prepared to let one of the staff entrepreneurs/business titans tackle it, so I could get back to writing a more ANNA-esque post. 😉

But when the page loaded, I was slightly startled to see a striking Brown woman whose picture sat atop a sidebar of “important details” about her: her title (Chief Executive of Rose International, an IT services company in the Midwest), her birth date, her nickname (Himanshu became “Sue”), even what she likes to do in her spare time (nature walks). The last bold, highlighted, impossible-to-miss bit of information contained…

her weight-control regimen?

Are you kidding me? Continue reading →

Forget Starbucks, Wal-Mart is evil!

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walmart blows.jpg

In a development that will not surprise anyone, mammoth retailer and purveyor o’ crap Wal-Mart is getting sued for ignoring the conditions of the factories from whence their ultra-cheap merch comes (via the BBC):

The class-action suit has been filed in Los Angeles on behalf of 15 workers in Bangladesh, Swaziland, Indonesia, China and Nicaragua.
Each claim they were paid less than the minimum wage and not given overtime payments. Some say they were beaten.

Wal-Mart promised that the beatings were merely for morale and didn’t leave any marks. I keed, I keed. America’s superstore said it would investigate the claims, duh.

The lawsuit mentions the obvious; the evil yellow circle who zigs and zags about Wal-Mart’s commercials wantonly dicing and slicing numbers is to blame. If they’re going to sell merchandise for unbelievably low prices, they’ll make up for those sales somehow, somewhere– Gunga Din is the easy choice, it seems.

The superstore is predictably vague in its response:

“It’s really too early for us to be able to say anything about this particular complaint,” said Wal-Mart spokeswoman Beth Kath.
“It involves a number of companies and manufacturers and we’re just beginning our research to learn more.”

Research away. Continue reading →

Rainy day friends

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With all the bad news about the weather, I thought I would try to lighten things up a bit. It turns out that some people really like the rain, and South Asian countries are creating a monsoon tourism industry around them:

The Indian tourist industry has created tours and activities aimed at rain-starved Arab visitors. Open-air discotheques are billed as “rain dance floors.” Tour operators peddle sight-seeing trips, or “rain walks,” as relaxing excursions for “introspection” and “family bonding.”

The Indian state of Goa first started marketing itself as a monsoon destination about five years ago. Resorts in India and northern Pakistan began seeing more Arabs eager to experience the novelty of rain. Posters went up in travel agencies in the Gulf nations of U.A.E., Qatar and Kuwait, beckoning residents to “Come Feel the Rain.” Goa, on India’s west coast, says it attracted 55,000 Arab visitors during last year’s monsoon season, nearly three times as many as two years earlier.

“We’ve seen steady growth in business from them, all of it during the monsoon months,” between June and early September, says Pamela Mascarenhas, deputy director of Goa’s state department of tourism. [cite]

This is very clever counter-cyclical business development. Usually resorts are only bustling during the dry season, and have to make enough money then to cover their expenses during the rainy season. Now they can use their capacity year round, thus increasing their earnings and dramatically cutting their exposure to risk.

As a child, my father would have loved to go on a vacation like the one described. He grew up in a very dry part of Punjab and was fascinated to discover that there were places in the world that got over 10 feet of rain a year. He instantly wanted to move to one of these places and was disappointed when my grandfather wasn’t ready to uproot the family and move to a tropical rainforest!

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