Small city Indians want (surprise!) western goods

Wealth, in India, is spreading from the big cities into the smaller ones. And with it comes an expansion of demand for Western goods, stoked by advertisements. Now desis in smaller cities want KFC, blue jeans, Fords (huh?) and (of course) premium alcohol. I wonder how many of star’s advertisers are making big bank in India? Maybe we should spread a list of their names to the Indian press — that would get their attention fast! Nobody wants to stumble in an emerging market. [Anybody have that list yet?] Read the whole article on the NYT (no permalink avail, unfortunately), snippets provided below:

KFC’s parent, Yum Brands, now has 100 KFC and Pizza Hut restaurants in India, 30 opened in 2004, and a goal of 1,000 by 2014. To realize such growth, the chains have begun a seemingly inexorable march into the country’s smaller boomtowns, cities like Coimbatore and Cochin in the south, and Jaipur and Meerut in the north, where middle-class Indians – who increasingly crave localized Western foods, regional flavors and ingredients infused into the pizza, pasta or poultry – have hailed their arrival. As India’s galloping economy has extended to its smaller cities, a younger population with expendable income is finding many Western and upmarket domestic products, brands and services increasingly accessible. Nearly 35 Indian cities have a population exceeding a million, and proliferating shopping malls cater to the rapidly growing consumer class.

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Call Center Operators Get Some Loooooooove

We recently reported about some idiot DJ who threatened and insulted a call center operator, to boost his ratings. [I’m waiting for Indian DJs to reciprocate] But the life of a call center operator is varied, and also includes moments like this one, from Conan’s show. It turns out that lonely, horny Americans are coming to the same conclusions that our parents want us to come to – that Brown Lovin’ is good Lovin’ [Either that or they’re to cheap to pay for phone sex]:

Nineteen-year-old Kajal aka Jessica Taylor could not help smiling when her admirer on the line questioned “Do you look like the Indian beauty Aishwarya ?. [sic]Come with me for a hot date tonight.” At 6 in the morning, Kunal aka Oliver Stone was just wrapping up for the day, when his last call earned him a kiss and a passionate dinner invitation.

Note – these are outbound rather than inbound call center operators, and since they are “breaking the bubble” of the person being called, the recipient may feel better about taking liberties.

Whole article posted below b/c it is only available as a cached copy and will probably soon disappear: Continue reading

Jetting to Bangalore

Jet Airways, the leading private airline in India, is far more luxurious than American ones: brand-new Airbus jets, hot face towels, nimbu pani and watermelon juice, coffee candies, sumptuous red and orange linen napkins bound in velvet rope, a choice of North or South Indian meals (ever had hot idli sambar and utappam on an airplane?), and a never-ending stream of tea and coffee. And all this on short-haul domestic routes rather the overseas ones served by Singapore and Virgin.

The Indian government will now allow Jet and Air Sahara to fly international routes, although it continues to shelter the lucrative Middle Eastern routes from competition. The airlines are presumably on their own for buying landing slots.

Indian airports are also in dire need of investment. On a recent trip, I could get wireless Internet access at the Delhi and Bangalore airports. However, they otherwise still resemble small regional airports in the U.S.: open-air gates, buses instead of jetways and a vanishingly small distance from gate to parking lot. They’re like the old terminal at San Jose before the tech bubble.

But with an astonishing 20% annual growth in air traffic, India just signed off on a plan to upgrade 80 airports throughout the country, including brand-new airports for Bangalore and Hyderabad. They’re partying like it’s 1999.

And in the tech-heavy cities, it pretty much is. Driving through Bangalore, I saw buildings that looked exactly like U.S. tech campuses, though smaller. Intel, Dell, Oracle, Accenture and Macromedia buildings abound; on one corner, with a shock of recognition, I came face-to-face with a company started by a friend. I couldn’t help but feel late to the party. With the number of South Indian programmers already working at Oracle, why not hire ’em straight from the motherland 🙂

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Forbes names India’s richest

Forbes magazine released its inaugural list of India’s 40 wealthiest businessmen, with half of the entrants hailing from the nation’s burgeoning technology and pharmaceutical sectors.

Topping the list with $11.2 billion is London-based steel magnate Lakshmi Mittal, who holds 88% of Mittal Steel. The company will become the world’s largest manufacturer of steel following their acquisition of rival International Steel.

Other facts of note:

  • Nineteen created their fortunes from scratch
  • Eleven made their money in technology
  • Nine made their fortunes in pharmaceuticals
  • Forty percent live in Bombay
  • Two Patels made the list, which means I will spend this weekend digging through the family tree.

Forbes: India’s 40 richest

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When you care enough to send the very _____

Per my Friday night custom, I visit a nearby drug store on Wilshire Blvd. to pick up a bottle of soda pop and some correspondence stationary. I hop over to the greeting card aisle whenever I need to restock my arsenal of overpriced pieces of color-printed cardstock. On one such occassion, I ran into the following birthday card from Ohio-based American Greetings:

 

I felt compelled to purchase and share the card with the Mutiny because it sprung forth many conflicting questions that I could not answer: Is this good-natured, equal-opportunity ribbing? Does such mainstream inclusion signify true acceptance and integration? Is the joke really just derived from a sinister dig at turbaned Sikhs? Did I really just shell out $2.30 for a card that I’ll probably never address? Why do my Friday nights resemble that of a kind, old granny?

Any answers are greatly appreciated.

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Microsoft doubles down in India

Microsoft is doubling down on its India bet by announcing a research center in Bangalore, due next month, just weeks after opening a large programming campus in Hyderabad.

The company decided to add an Indian campus to take advantage of promising computer science students coming out of universities there, said Rick Rashid, a vice president in charge of Microsoft Research. The company hopes to hire a couple dozen researchers over the next year, he said.

Intel is also shifting some high-profile CPU design work (the Xeon ’06) to Bangalore.

A more desi-friendly Zara

This post is in honor of the busiest shopping day of the year. A fashion entrepreneur might do very well with a more desi-friendly Zara:

Zara is paradise for sexy men’s clothing. It’s my all-time favorite store…

  • It’s one of the vanishingly scarce stores in America which do fall colors and deep jewel tones, like Indian formalwear, instead of those sickly pastels which look terrible on desis
  • Its fabrics are beautifully textured, like sherwanis, so subtle details appear upon closer inspection
  • It does dramatic tapered cuts rather than the shapeless American box cut; it’s the only non-designer store where I can get any semblance of a V-shape and waist…

The Economist compliments its speed:

Zara is the world’s fastest-growing retailer… Zara can make a new line from start to finish in three weeks, against an industry average of nine months. It produces 10,000 new designs each year; none stays in the stores for over a month…

Someone please clone this store, quick. The number of dark-haired people in the U.S. (black, Latino, Asian, desi) is enormous and growing. Zara with a more desi-friendly line and deeper supply chain could be an absolute gold mine…

Also focusing on the underserved dark-haired, olive-skinned market is fellow Berkeley grad Lubna Khalid’s startup, Real Cosmetics.

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The ‘big bang’ launch

Among Bollythemed entertainment, Bombay Dreams on Broadway and Bride and Prejudice in the UK have both trended sharply downward after strong openings. Two other desi (but not Bollywood) projects, Vanity Fair and Harold and Kumar, also did weak box office.

It’s tempting to conclude from the business torpor that America is not yet ready for desi culture, that the existing revenues reflect mainly interest from niche, culture-sampling subcultures. But take a look at it from the perspective of the ‘big bang’ launch: the $1B marketing campaign for the presidency, the $250M spent on the Windows 95 launch and so on. Creating a market via customer education is far more expensive and time-consuming than just selling into existing positioning slots (Spiderman 2). The former is a long-term campaign, while the latter is straightforward, tactical awareness-raising: hit the magic 7+ impressions per customer, and you’ll get higher sales.

I’m pretty sure fusion desi culture in the U.S. is not a fad. It’s a strong subculture with intense palettes, a supporting South Asian American population and rising awareness. So each desi cultural product, no matter how it performs, is also an in-kind contribution to the ‘big bang’ launch for Desis in America. This launch is being done in pieces, as befits a small, innovative product growing organically. The endgame is probably similar to the awareness and saturation of desi subcultures of the UK or Canada, albeit more dilute.

So while Meera or Mira or Gurinder or Kal may be nibbling discontentedly on their numbers, they can take some consolation in their contributions to a larger campaign, no matter how unintentional.

One More Dream for Chatwal

SM’s favorite Page Sixer, hotelier and actor Vikram Chatwal, is celebrating the opening of his newest destination with a “star-studded” bash tomorrow night.

Despite Chatwal’s busy social life, and a tussle with celebrity photographer Dave LaChappelle, “Dream NY” will open its doors as scheduled. No word yet on the status of invitations to the opening party for east coast Mutineers.

The hotel boasts “a hip, futuristic fantasy of mirrored vaulted ceilings, columns crowned by blown glass, a glass elevator and a whimsically striped lounge.” The rooms are equipped with iPods and plasma TV’s, which should make watching hotel porn a truly memorable experience. If you’re interested, rates for this weekend range from $309 to $789 a night.

For those of us on the other side of the country, we may soon have our own Dream to reckon with. Chatwal’s Hollywood flack, Eileen Koch, released a press release yesterday announcing her client’s interest in opening up “Dream LA” on the city’s Sunset Strip.

* * * A Special Message for Vikram Chatwal * * *

Mr. Chatwal, when such a hotel opens, I (and possibly fellow Angelino, Abhi) would love to join the west coast division of your party-hoppin’ crew. I haven’t hooked up with a supermodel since…well, since forever, so this could be just the opportunity I’ve needed. I eagerly await your response.

* * * End Special Message for Vikram Chatwal * * *

Included in the press release was news that Chatwal has landed a role in the independent film, “Hope and a Little Sugar,” which is scheduled to commence shooting in a couple of weeks. He was last seen in the short film, “One Dollar Curry.”

Business Wire: Hotelier Vikram Chatwal Scouts Location for New Hotel on the West Coast
Sepia Mutiny: On the Trail of Vikram Chatwal…

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Indian companies hiring engineers in China

This is fascinating: Indian outsourcing companies, caught short-staffed by surging sales, are subcontracting some of the work to China.

“We need a deep reservoir of talent as well as an alternative low-cost center like India as we continue to grow,” said Nandan Nilekani, chief executive of Infosys, who has talked of his company’s scaling up to become the Wal-Mart of outsourcing. “And only China can match up.”… China has some 200,000 information technology workers–compared with India’s 850,000–in 6,000 local companies… More than 50,000 Chinese software programmers are being added to this pool annually.

… even with wages rising in India, China’s information technology workers are more expensive “because a combination of English-language and technical skills is at a premium,” Nilekani of Infosys said.

So a country which couldn’t defeat its neighbor on the battlefield is employing it instead. And it’s all thanks to unwanted colonization by an empire which left behind its language. It’s not only the law of unintended consequences, it’s also slick jujitsu.