The New Land of OpportunityBy: Om Malik Presented by Mario Kempf

Current Situation In India

Malls that sell international brands Programming companies Call centers Earning $ 9,000 per year – 19 times the

averiage Indian income 487 million middle-class Indians will spend

an additional $420 billion during the next four years.

Spend money on well-known products/brands such as Ipods, eMacs, Tommy Hilfiger, Sony, Armani, Hugo Boss

Opportunities & Risks

Opportunities:India's economy is projected to grow 7.2 %WTO will eliminate trade restriction on industries

such as textiles and pharmaceuticalsThis will boost exports and Indians will have more

in their pockets to buy goodsIndia’s 20-34yrs population will swell to 280

million by 2006 (most important buyers segment)

Risks:Unstable government (communists vs socialists)10 new governments in the last 20 yearsResidents speak 17 major languages

How DO You Capitalize?

Plenty of big-name companies have started moving in

U.S. exports to India surged from $4 billion in 2002 to $5 billion in 2003

Markets (telecommunication, cars, software, micro-chips, IT)

Consider differences in language and culture within the country

Value Sells

Blend of price, utility, quality & imageExample - cell phones:

Higher-priced brands dominate the market (Nokia, Samsung

Promote their color-screen camera phones as lifestyle items ($80-$550)

McDonald‘s, Levi Strauss, LG, Hyundai

Cut unit costs (Coca-Cola, Shampoo, low-priced pre-paid cards)

Work Cites

http://www.cocacola.comhttp://www.sony.comhttp://www.nokia.comhttp://www.apple.comhttp://www.hyundai.co.in