Who is shopping for services in India AND China online?

Basic creditcard / debitcard / smartcard graph...

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You must have noticed thru the two years of Advantage social / Advantage zyaada/ Advantage Brands our use of content systems from the blogverse has been incidental and for rebuilding social capital

Google in fact does realise that and does not list our analyses in blog pages, listing it in the main search results pages..one of the popular ones with both bing and google and Facebook being “Bank results season” others of course almost all business topics with Advantages.us before and after it. Twitterone has survived too. the purpose of the catcalls – to look for the needle in the haystack, the paying proposition…thence the title of this piece. Though bloggyish, this post also will not be a narrative of my travails and tribulations much so because that would at best be a paying blog/blogger and i am trying to harness the social web and the global financial markets with a bigger idea. I am of course catching the most picky topics so many brands have done exactly the things i liked or “asked” them to do and so did many sports rise in the social world so most of my readers do have an instant opportunity to become instant competitors when they come across the right words to launch their inner demon ( the good guy, the achiever) from the millions on offer. But the thornier question is to find the way to profits and greenbacks while creating and preserving profits and brands for you without resorting to the flailing tactics of the hitherto Wall Street champion, WSJ or even the Pearson media property the FT.

The digital media of iPad, Kindle or the web properties of Facebook and Twitter are closer to the utopia but even these cannot claim to have it good in that cradle of human consumption for the next two decades. Oreos and Mac and Cheese might still have a better chance than the digital business models in getting paying customers here in Asia. And there in, lies my pain..

For others who have the funding and the people to back the ideas, they might consider the following as essential requirements in selling services on this side of the sunshine line:

1. A value proposition that does not need anything more than a bare visit to the property to prove its worth. India and China consumers and corporate customers are very much concerned with the intuitive buy in and not reams of proposals and analysis

2. An ability to continuously deliver a paying surprise. Services products especially need to withstand the torment of time and patience and produce winners like clockwork, like your sports stars we’d rather buy a daily Venus Williams than a once an Olympics Agassi..

3. Find a paying club to back you. Individuals and Credit Card customers are unlikely to buy more than groceries or laptops, offices, resident associations and even midwives clubs are more likely to buy subscriptions, consulting services or even taxi services. ( fleets just have to charge lesser than a taxi to sign up, and they’ve hardly done anything else anywhere else in the globe)

The caveats are many and stay the same much because of entrants like the WSJ and Apple:

!. Most global services/ design brands end up looking at a premium/luxury niche alone in these markets – Great for profits but still not likely to tap even 5% of the Consumption club in these countries across the new towns, the boom towns and the always forever towns

2. Do a little soul-searching when you do your staffing..Most global services brands make more than a few costly hiring mistakes when they come in the open door and it is difficult to overturn these later..typically a lot of European brands could attest to such an experience ( and Kraft of course :) )

3. Go on a media binge – it pays. IT’s ok in the caveats, really. That is the lesson early advantage seekers may have learnt already. This market rewards public presence tremendously. Get good PR and make it work continuously. Buy more advertising, just to sell the name for a few first months and then for the services ideally. The caveat – these markets can be very suspicious of a name they have just heard and reward the competitor who irrespective of product or service quality is louder and more lucrative for the distributors

4. last but not the least, despite the lower likelihood of unemployment, the number of free hangers-on who will never write a word for or against you or actually analyse their own pronouncements before making them will stay in the high millions for every trusted advisor you sign here. WOM – what’s that?

Soccer Fun at the Mall | Advantage Sports

Credit Agricole pulls out Ad campaign for France | Advantage Sports

In a startling development, sponsors of the French soccer team, Credit Agricole pulled out their TV campaign celebrating the French Soccer team after the team performed abysmally and as the sponsors put it  - “is embattled in controversy”

The team’s corporate sponsors have held conference calls to voice their anger at the players’ refusal to train.

There are very few active sponsors out there who take pains to step on to the field and some may still debate whether they have such a role to play , in any sport. However Corporate sponsors and budgets are an important part of the team’s brand and they need to carry a fiduciary responsibility, to be executed in a formal role withe the team. It may seem opportune here that this might happen thru an existing sports functionary on the team. Similar fracas in IPL with team owners or the clubby nature of teams in NFL or the NBA show light on the critical role team owners and sponsors play.

However sports persons are right in their sometimes standoffish stance to these entreaties  in that this role is sprung on them and typically on a bad day. Though formal processes are over hyped and narrow in approach, sports persons can’t be expected to absorb the role of the sponsor/owner as and when it happens and debates on such interventions during disruptive climes are warranted.

In this particular case as well, there will be popular support for the action and sports officials will be on the wrong side arguing for the sake of argument or apologising for their poor performance in front of a theatrical act. It may now become important for everyone to assume the important role of corporate sponsor into the team’s fabrc and provide a discerning option for sponsors and/or corporate owners that want to distance themselves from the game.

While we were tempted to carry this opinion in our financial research streams, we thought it wise to let the game go on without this undue stress.

Ft.com

Sponsorship and TV rights of the French national team are worth €70m ($86.3m), according to Les Echos. The team sponsors are retailer Carrefour, utility provider GDF Suez, Crédit Agricole, SFR, the telecoms company, and sport goods maker Adidas.

And China never qualified

In a eerie blast of icy change, today’s LA Times blogs carry Asian stories prominently leading with rural BPO in India and blogging about how Soccer is still alien to China. Knowing our asian brethre, they wouldn’t be far behind next time in Rio..

Asian Markets wake up to heady consumption | Advantage China

Even as PE investors dive for Malls and Luxury Islands in China, new entertainment parks in Singapore and Shanghai and much more in Indonesia and Korea, India keeps a sturdy growth outlook while Chinese government’s gets vocal about its pound of flesh in Oil, Office procurement, Cars and Real Estate saving the local industry from the bad invaders.

China’s MNC Insurance Companies have only 5% share while BYD’s E6 Electric Car will lead the government’s plans to take 50% of the car sales, and office supplies will celebrate indigenous innovation

The Great Hall of the people | China

A wonderful view of the ceiling where the National People’s Congress is being held in Beijing (hosting a ‘liang hui’ or two organizations) tomorrow, the second being the senate ‘equivalent’ China People’s Political Consultative Conference

Aren’t you wondering why I show it in Marketing :) It is this picture, but it is the whole ‘legislature’ thing in the chinese government..According to Seth Godin, that would make them marketers Also please check the CeBIT post on our other Advantage Brands Publishing factory

Retailers and Retailing | Advantage Lifestyle

Interbrands does it for everyone around the world and because we identify lifestyle options as an important backbone for the teens profligacy re-branded as economic growth, We doff that hat to Interbrand, say a sweet bye to all the brands we have passed on our way into your Top 10 and comment on another obvious which we all shouldn’t be wondering about. That’s about our day then.

Here’s the dear Interbrand Retailer list, and we went down to No. 20 for a reason. Which of these would come back another year?

White Label is around in China
White Label is around.. in China, Retailers do well.. online

Yes, this Caption is important. Though if you want the Interbrand’s experienced thought leadership, go here and if you want established consultants in the retail space, well get back to us and we’ll lean in on the names, in your ear.

Seriously, MLM is growing, P&G sells lesser to Walmart each year, Amazon keeps growing in double digits, and oooo..h look at the office and home supplies guys. Then remember size is meaningless during the battle of the hypergrowth vs the struggling to manage growth retail. Then remember Ikea, Lego, India, China, White Label and the auction stores like Ebay..This list is one sure cracker way of buying a rollercoaster ride! Cyber Monday may beat Black Friday but Amazon is eons behind Sam and Apple Store, when is that going to add up its numbers! Macy’s may be back too..

You may write out Dell, but Costco isn’t budging from its stand on price. And then there are 200 urban clusters in China and India is that delicious bite away from opening up on the back of a strong currency. This would be the hot button list all retailers have sunk money into for good reason. And if they start using the real estate value, McDonald’s may still be back, Starbucks too..The 3PL ain’t valuing the Retailer well..the metrics have changed. The East and the West, they are all the same. Without Credit Card debt they are half of what they used to be, global retail sales worth $300 billion from $340 billion and then rising because spending goes on..afresh. A global spending class could be defined for a disposable income of around $10000 to $20000 per year..that’s rich.

That Sam is Walmart with $130 billion, everyone else can drop off and move 10 places up overnight!

Auto Zone and Kohl’s are around too, Barnes and Nobles down at #44 much below the billionaire brands at Netflix and Radioshack.

Samba? Just more Superbowl in Asia!

NFL Cheerleaders promote the NFL Superbowl in Shanghai. Did you also notice the World Series Baseball is as popular in Japan and Korea as the homeland? Of course we export Cricket and esp npow the $3 billion IPL ( Valuation likely to go up by 50% by the time March ends! And Superbowl was sold cheaper this time..:lol

China’s Lifestyle Dream | Advantage Lifestyle

Avatar just got blocked in China because as some say, a local movie Confucius is being launched and they want to give it a chance to succeed.

Already the third largest luxury goods market in the world behind Japan and the United States, luxury experts believe China will continue to grow as the country’s emerging middle class tops 250 million by 2010.

India’s middle class is already in boom towns beyond Delhi and Mumbai and spends a lot on things beyond a car and a home. The crisis has but changed things for some time.

However as surveys note, in 2009 crisis ridden China has seen the spending class change faster from Brand to value and make more use of the Internet for purchase decisions. Internet usage is 40% higher (McK Annual Chinese Consumer Study) , Mass and Premium Consumers are slower to trade up , Trading down brands ( Top 5 brands of shampoo share fell 12% to 46% against 58% earlier) in at least 6 out of 22 consumer products and the proliferation of channels like hypermarts and retail supermarkets is having its effect.

It’s not the recession at all. These trends last. In fact even Car and Home sales were up 50% by June 2009. The sophisticated consumer is unwilling to pay additional premium or hanker for a branded flat TV as the new habit of consumption wears off. She has other sources than her neighbour or her uncle from another town. His hankering for luxury or a ‘premium’ lifestyle has not changed. Marketers however have to apply more facets of Marketing from Price to Reviews to Place and Positioning to get her/his attention. Esp in China not as much as the other big market, habits, language and hopes change from one village to another and a conscious choice is a much sought after prize for all education levels and for almost everything from Car, Shampoos and TV to the programming on TV, the Sports and the drinks

There are products like Air travel, Cosmetics and Life Insurance which have hardly been tried by the population and offer an excellent opportunity. Starbucks sells coffee in 70 locations in the Capital Beijing alone. Mandarin vs Cantonese is a problem of different age groups and thus differing taste. Spending is constant and growing at an even pace.

The Brand Reputation Management Crisis | Advantage Social

Angus MacKenzie and Scott Evans over at MotorTrend.com have a great, well thought out and factual discovery of the crisis for Toyota and US Car Drivers..The hurt to Toyota is just beginning to tell, but they are not the only ones this year:

Mead Johnson, Infant Formula..

Pampers (MarketingPilgrim.com:Andy BEAL) ..

Diamond Foods Cat foods (2009)..

Jordan (sneakermestupid.com) – Japan’s national pride was hurt on the insole TWO 3 spelt Jordan’s shirt on the tongue..the stories are as wierd as today’s collaborative web!

Kellogg’s Eggo 2009

Melamine in Milk ( China 2007)

While we all continue to work out what it means for the consumers and pay the costs , I recommend the great insightful work by MotorTrend.com

Do let us know if any of you work on the above recalls.

Note on Reputation Management The social web is a great enabler for Big Brands and even Nations to defend their vision, values and spread the social ly responsible word about them. It helps when you have a few friends and Facebook, but more often, Twitter is providing the marketing biggies an opportunity to correct the ship’s course and monitor it every minute of the day. It could even save a few lives. Of couse there will be in the end a coalesced corporation or two that will do just this for the brands and for the consumers a couple of years down the line, but till that happens, everyone needs to lend a hand

Draft: Kraft’s Marketing budgets under pressure

Draft: Also see Cadbury’s


More low calorie chocolate?

Easy Mac, Singles, Nabisco portfolio and Cheese

BW Crunchy Story

Kraft Foods Inc. (KFT ) sure has bulked up. In the past five years, the company has gobbled up 10 rivals, including Nabisco Holdings Corp. for $19 billion in late 2000. The result: the biggest packaged-food maker in the U.S., with expected 2004 sales of $32.3 billion and products in almost every aisle of the grocery store, from Kraft cheeses and Oreo cookies to Oscar Mayer meats, Post cereals, DiGiorno pizzas, and Maxwell House coffees.

Now Chief Executive Roger K. Deromedi has decided it’s time for Kraft to slim down. He began with the Nov. 15 sale of Kraft’s Life Savers and Altoids candies to Wm. Wrigley Jr. Co. (WWY ) for $1.5 billion in cash. And more will follow, he says, as Kraft divests itself of other laggard and peripheral product lines to concentrate on the blockbuster brands that can be tops in their categories worldwide. Says Deromedi: “We want the products that consumers and retailers are more excited about.”

Clearly, the pressure is on the 51-year-old Deromedi, who became Kraft’s sole CEO a year ago, when Co-Chief Executive Betsy Holden was demoted to global marketing president. Like other consumer-goods companies, Kraft is scrambling to give Wal-Mart Stores Inc. (WMT ) and other retailing giants what they want. Bulking up to gain leverage with the retail behemoths fueled much of Kraft’s expansion in the first place, but that strategy hasn’t worked. With Wal-Mart and others increasingly interested only in the briskest-selling products, it turns out that suppliers are better off with a clutch of category killers than a cartful of so-so sellers.

But dealing with Wal-Mart isn’t Kraft’s only problem. Many are of its own making, from turmoil within its executive suite to oversaturating store shelves with too many variations of the same old product. How many different kinds of Oreos do consumers really want? At the same time, other consumer-products companies, notably Procter & Gamble Co. (PG ), have been far more skillful in navigating the retailing shoals with nifty new products. What’s more, management at Kraft’s parent, Altria Group Inc. (MO ), is putting the squeeze on Kraft to shape up in advance of a possible spin-off of its controlling stake next year.

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