“As the pioneer of exploring the market of low income, enterprises of consumption such as Godrej Group have started their journey to expand the world market.” Nikkei Chinese network said on 3rd that Indian enterprises were intended to adopt a “low price strategy” in the fierce market competition in the world. Besides, they decided to “transplant” the mode of exploring and selling low price commodity to other emerging markets such as Indonesia.
Ananth, reporter for India today in China told the Global Times that in India, Godrej Group had an old and well-established brand with a history of over 100 years. The number of the poor reaches 400 million in India. Godrej Group has been exploring commodities that are easy to purchase for people with low income to expand the market.
How cheap is Indian products? According to some research done by Global Times, products such as cellphone and laptop are the focus of the low price strategy. A homemade laptop promoted by India’s biggest shopping website flipkart is only sold for 2989 Ruby, less than 300 RMB. Daily necessities thickly dotted in grocery stores are divided into small packages. A 60g scented soap only costs 10 Ruby.
However, you get what you pay for. India’s low-price products usually lack insurance on good quality. But the low price strategy still works in India. Although it seems that the populous India is a large market, the level of consumption is obviously low.
According to Press Trust Of India, the average monthly income is expected to grow by 10% this year, which will be 7378 Ruby. Apparently, products with high quality and high price can hardly walk into the market with such an average monthly income. Based on the new poverty line drew by India, almost 1/3 of the whole population are living below the line.
As to whether low price strategy can help Indian products to go global, Ananth held the view that if India hoped to open up a new field in markets such as Southeast Asia or even the whole world, the quality of the products need to be improved in addition to the preferential price. A Chinese scholar who is a long-term resident in India told Global Times that the competitiveness of India in the Southeast Asia market was still behind China. Many Indian products were produced in Chinese factory.
本报驻印度特约记者 陈晨 本报记者 郑一真