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While returning to my office after attending a presentation by
a world renowned Internet Guru on how e-commerce will graduate to m-commerce
soon, and the life of an average Indian will change drastically, my cell phone
rang. It was none other than my wife, anxious as ever, to know when the driver
could come home, so she could ask him to deposit the electricity and the
telephone bill. This has become the way of life for us.
By all practical and theoretical market research language
standards, our household fits very much within the defined criteria of the
target segment for "e-commerce". We have access to Internet at home
and hold multiple credit cards as well. Why has the e-commerce bug not bitten
us, then? I am sure, like us, there are many such households who could be part
of the target segments, but are not freaking out on the "Net"–the
core of e-economy or so to say e-commerce.
The simple answers to my classic questions or the questions
raised by the Internet Guru, whom I had met the same morning, came from none
other than my wife, over our various sessions of discussions. She knew that in
the Indian context, it is only b-commerce, which is existing today, and will
probably continue to exist for some more time.
So what is this B-Commerce ? The ease with which she
illustrated and made her point made me feel she could be treated as a voice of
the Indian household, by various market researchers and marketers .
To start with, she buys her grocery from the friendly
neighborhood storekeeper, who is always willing to deliver the goods to Bibiji .
He also knows that if there is an urgent need, the Bai would be sent to pick up
the stuff. Or else, he would receive a phone call from Bibiji in which case the
Bhaiyya (in North) or the Babu (in Southern India) in his shop will come handy.
I think she understood the subject better than me. One could clearly see the
point she was making. She went on to explain further to me that, as far as
possible, the saree and the suit that she buys for herself has to pass through
her own checks of bargaining, which can’t be done over the net. She proudly
comes back from her shopping trip and explains how exactly, she was able to
negotiate the prices with all kinds of vendors.
While I was wondering about all this, I started searching for
some more b-commerce agents, and one was amazed to see that they existed all
over the place. The office boy who cannot escape anybody’s attention, is one.
He still exists and is used by quite a few people for running errands. The
friendly and sometimes not-so-friendly government Babu, who can get your deal
done with a smart acumen that no swanky dotcom could ever match, is another.
B-Commerce
The shares are being bought and sold through the age-old
trusted broker, and not through the net. People are still not sure whether deals
done through the net are safe and secure. There is another segment in India,
which is the Benami segment. This group cannot be ignored, either. These are the
pillars of the black economy. How can you ask them to fall into the ‘e’
category, when they are more comfortable only with the ‘b’?
Slowly, it was becoming clear to me how a Biradari
(community), which has Bhaisaheb & Behanji (brothers & sisters), Bade
Sarkar (big official), Bai (maid) and Babu (south Indian name for domestic
servant), were depending more on ‘b’ rather than ‘e’ and would continue
to do so.
A Possible Way Out
Ours is a country which does not have a very high percentage
of literate people. English as a language is still spoken by a chosen few, and
hence the language of commerce is not widely understood. A barrier, which may
get demolished only
over a period of time. Probably, a Bolchaal ki Bhasha (easily understood
language), is the need of the hour.
The need today, is to find ways and means by which e-commerce
strategies will have to be re-defined and re-discovered to suit the business
needs of the Indian consumer, who has yet to be understood by the e-world. The
famous Indian consumer buys a feature rich multi-CD player, worth thousands but
refuses to buy the standard high -priced CDs costing Rs 400 to 500. Instead, he
is more comfortable if he is offered a cover version of the same CD at Rs 75. He
will buy a premium car worth lakhs to maintain his status in society, but,
should there be a need, he would prefer to get his car repaired for one-fourth
the price from the friendly mechanic rather than going to the company showroom.
He is always hunting for a bargain.
Need to Reorient the Business
I think we can illustrate this particular point with the
example of an Indian music company. The company gives an option to an ordinary
customer to create an hour long compact disc of his choice over the net. This
CD, with a customized set of songs, and of course, a cover of the choice of the
customer, can be created and delivered with a personalized message. The product
is delivered within 72 hours at the doorstep of the consumer. The
price-conscious Indian customer cannot afford to buy ten CDs with each featuring
one song of his or her choice. He prefers to pay the price of one and have all
ten in a CD of his choice. Mind you, there is no piracy involved.
This is precisely what is required in India. As long as the
Indian consumer does not find his own value equation balanced, he will continue
to use the famous ways of b-commerce.
Because, as you know, even a great game show idea like Who
Wants to Become a Millionaire?, had to be totally Indianised (Bharatised, if you
like), by the roping in (who else?)of the Big B, to make it successful.
Before you try to accuse me of only playing with words, I
want to clarify one thing. All this light writing is aimed at driving home a
serious point. That one cannot ape the US or France nor the Koreans or the
Japanese, to succeed.
To be successful here, one has to understand that this is
India, or Bharat. Localizing is the key to success here. And that the ground
(incidentally, Bhumi, in Hindi) realities are different.
Ajay Pandey, chief
operating officer, Tata Teleservices Ltd