India – Three Countries

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A few days ago, Founding Fuel posted a cogent piece by Haresh Chawla on How India’s digital economy can rediscover its mojo. In it, Chawla speaks about the current crisis of confidence surrounding the digital economy and the so-called unicorns. It’s a great piece on the realities of the startup mania, and has a lot to offer to many of us – regardless of the role we play in the ecosystem. What was most intriguing for me, however, was Chawla’s thoughts on how India is not just a huge mass of consumers as many in the western world mistakenly assume. Here’s how he articulates it…

 

India One: Club the top 2-tiers above and you find that the top 15% of Indians, i.e. about 150-180 million, earning an average of Rs 30,000 per month, are the ones who have money left over after buying necessities. These 15% of Indians control over half the spending power of the economy and almost its entire discretionary spending.

India Two: This is the middle 30% or 400-odd million Indians, earning an average of Rs 7,000 a month… They are the ones who “service” the $1 trillion market (yes, read that again) that India One represents… Of course, we report them as internet consumers in our slick presentations on Startup India.

India Three: These are the forgotten 650 million who subsist and don’t have the money to buy two square meals. Their incomes rival that of sub-Saharan Africa… However, they are the ones who form our vote banks and determine the political future of our nation.

 

Think about that for a minute. Yes, as Indians, we all know that there are huge disparities in the wealth that surrounds us. And that is unlikely to change in the short term. But to think of India in terms of “three countries” puts things in perspective, doesn’t it?

If I had a dollar for every time someone told me they were thinking of “building an app” as a path to striking it rich…

Of course, it is a silly notion to think that one app – any app – makes for a healthy and sustainable business model. And I’m sure the marketplace will address such misplaced notions appropriately, for the most of us who venture into this ‘glamorous’ territory completely uninformed about what lies ahead. But there is a larger issue at play, here.

Even if you don’t intend to start an app project on the side, if you’re reading this, you are most likely a part of the ‘India One’ that Chawla writes about, and therefore, in a position of some influence in Society. You are more likely to be involved in making decisions on behalf of your employers related to the products or services you manage. You are more likely to spend your waking hours in the pursuit of making your product or service available to consumers across categories – India Two and Three included.

Do we really understand the customer we seek to satisfy? Do we know what their world looks like? Do we identify with their trials and tribulations? Or do we assume that their lives more or less resemble our own, except for the fact that they don’t watch Star World or converse in the Queen’s English?

Think about India in terms of three different worlds, and you may just have a greater chance of success when it comes to translating your lofty ideas into success on the ground. After all, understanding your customer’s needs and addressing those needs profitably is the very foundation on which any business is built. Is it not?

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