Slow convergence
MARKETING
| Medinipur is a typical market in east India "" conservative with money, and conscious of quality and price differences. If anything, such behaviour is even more pronounced here. Few people buy consumer durables on credit. Khokon Das of Das Electronics, the biggest multi-brand store in Medinipur town, the district headquarters of East Medinipur (the district was split into east and west in 2002), reports that barely 3 per cent of his sales are financed by banks or NBFCs. |
| But when he does buy anything, the consumer in this town goes for brands with sound reputations, or at least ones that are heavily advertised. Sony's HM212M80 is a bestseller "" of the 111 pieces sold during the World Cup season, 40 were these 21-inch flat colour TV sets. |
| "Customers come here with a clear choice "" they want this or that. They've either seen an ad on TV or they have seen one at someone's place. And they will not be persuaded to buy any other product," says an observer. Hyundai is popular too. Set top boxes for DTH services are also selling, given the poor quality of cable transmission in these parts. |
| Among mobile handsets, Nokia is the bestseller. Says Ashish Maity of Milan Distributors in Tamluk, "Nokia was the first to come here and it remains the first choice. Samsung and LG are catching on, but very slowly." |
| The changes may be slow, but they are discernible. Mobile phone spends, for example, are low (a Rs 60 refill around once in 10 days would be typical), but the trend towards adoption of communication devices is strengthening as more and more people in the area get accustomed to the convenience of telecom services. In fact, if there's an obvious change in recent years, it's that Medinipur is no longer quite as cut off as it was. |
| Credit adoption is happening too, albeit slowly. UTI bank is the only bank with presence in the district (it has deposits of Rs 6 crore from its 2,500 odd savings-account holders), though HDFC Bank, ICICI Bank, Centurion Bank and IndusInd Bank have started operations through channel partners. Two-wheeler loans are the most popular, with ICICI Bank alone reporting disbursals of Rs 2 crore a month. |
| It's an agrarian district. "Its economy is closely tied to the crop cycle," says Mohan Pal, partner in Palco Automobiles, a Hero Honda dealer. He sold a record 815 vehicles in May this year. But since July, sales have dropped by as much as 50 per cent. "The prices of potato, a major source of income, have not risen." He expects the Puja season to herald a revival, though. |