Every new vendor who enters this country has the same thing to say -India is a growing market, as compared to more mature markets across the world, and hence has immense potential to make a lucrative profit. But when you are faced with declining margins and struggling for survival you wonder where this potential is and why is it remaining so hidden.
The fact is that the potential is not being tapped adequately. While realizing that IT penetration has to increase in the country at a rapid pace, there is no clear-cut agenda as to how to achieve this. A report presented by the IT minister talks about the need to improve IT penetration. The report states that by 2008, India should achieve a PC penetration of 65 per 1,000 from the existing 14 per 1,000, Internet penetration of 40 per 1,000 from existing 5 per 1,000. Impressive though this growth rate might seem, it is only marginally higher than the TV penetration rate of the country, which is currently reported at 26 percent. And that too in the villages. In the urban areas, the penetration rate is much higher – around 66 percent.
What makes the owning of televisions, refrigerator and washing machines so much more desirable to the customer than owing a PC? 360 Magazine tried to delve into this secret and find ways to replicate the success of FMCG distribution in the IT industry in the cover story of the June 14th issue. What we found out was that there are no simple answers and no straight strategy that can be replicated.
The IT industry is still considered to be an ‘Intelligent’ industry, one where the commonman treads very carefully. If we find a way to make the selling of IT gadgets as simple and untiring as buying a television, then we have hit the jackpot.
The catch is – this is easier said than done.