Special Address at The Economic Times Masterclass on Rural Marketing. December 16, 2015
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My special address on Technology's Transformational Impact and Implications for Rural Markets & Marketeers - Today & Tomorrow.
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Special Address at The Economic Times Masterclass on Rural Marketing. December 16, 2015
- 1. Technology Transformation: Impact & Implications Prakash Bagri @prbagri
- 2. What I hope to cover… • Understanding Technology – Why? Relevant? • Implications for Rural Marketplace – And marketers • Some experiences & thoughts 27-12-2015
- 3. • 25 years ago • 15 years ago • Today • Rural India is one market • The Rural consumer seeks to ape the urban consumer • To succeed, a cheaper product at a lower price- point will do the trick • We need to develop scalable models 27-12-2015 PRB Partners Confidential 3 Myths then… and now
- 4. Myths then… and now • Rural India is one market – ~10K urban agglomerates & 600K villages – Different & how! • The Rural consumer seeks to ape the urban consumer – S/he has a solid mind of her own. – And a world-view beyond their urban brethren • To succeed, a cheaper product at a lower price-point will do the trick – Within two year, 1 out of 3 smartphones sold will be in rural • We need to develop scalable models – Scalability is a myth. Where lies the trick? 27-12-2015 PRB Partners Confidential 4
- 5. WHAT DROVE THIS CHANGE? 27-12-2015
- 6. The Malabar Fisherman, 1997 27-12-2015 The Digital Provide: Information (technology), market performance and welfare in the South Indian fisheries sector”, by Robert Jensen. Quarterly Journal of Economics,August 2007 Fishermen's profits 8% ↑, Consumer prices 4%↓ Payback 2 months! “Information makes markets work, and markets improve welfare” Not just price discovery, but price determination
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- 8. What changed? • The hierarchy of adoption does not hold, any longer – No trickle down effect, adoption almost instantaneous • Rural consumers don’t blindly ape urban – Form unique usage models, and might even be trend setters • Their opinion leaders are changing – Physical presence is no longer a prerogative • Their field of reference is changing – “The world is my oyster” 27-12-2015 PRB Partners Confidential 8
- 9. WHAT DROVE THIS CHANGE? I will come back to it.. 27-12-2015
- 11. Technology’s Transformational Impact Technology = τέχνη, λογία techne: activities, skills, art People, materials, equipment, processes, tools 12/27/2015 11
- 12. Technology’s Transformational Impact “Created creates creator!” PJ Bonhiem (1935) An active, not passive force! An enabler 12/27/2015 12
- 13. Technology and Moore’s Law 27-12-2015 Nielson’s & Edholm’s Law
- 15. Internet’s Disruptive Force 27-12-2015 Information, Reach, Convenience & Economics
- 16. From I= HW x SW Proliferation of Devices Computing Growth Drivers 1960-2020 (Device/ MM Users) Source: Morgan Stanley Mobile Internet Report (12/09) Avalanche of Applications Mobile Application Download & Revenue Forecast 2010-14 Source: Gartner 27-12-2015 From I= HW x SW to 𝒊=𝟏 𝒏 𝒉𝒘𝒊 𝒔𝒘𝒊
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- 18. 27-12-2015 The App-ification of the World!
- 19. Democratization of Innovation • Knowledge • Creation • Funding • Incubation 27-12-2015
- 20. The Implications • Technology: An active force • The domain of technology expands • Increasing access, leading to ubiquity • A network of connections on which innovation will continue to build 27-12-2015
- 22. What changed? • The hierarchy of adoption does not hold, any longer – No trickle down effect, adoption almost instantaneous • Rural consumers don’t blindly ape urban – Form unique usage models, and might even be trend setters • Their opinion leaders are changing – Physical presence is no longer a prerogative • Their field of reference is changing – “The world is my oyster” The models to reach and engage need to adopt to the technologies of the future 27-12-2015 PRB Partners Confidential 22
- 23. Perspectives on Rural Markets • Just like Markets ≠ ΣConsumers, • Rural Markets = ΣConsumers + ΣBusinesses + ΣEntrepreneurs + ΣCommunities + ΣObservers +⋯ • Rural Markets = B2C + B2B + G2C + C2C 27-12-2015
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- 27. Scalability: The Holy Grail 27-12-2015 Don’t get caught in the search of scalability. It’s elusive. There will be multiple models. Seek replicability
- 28. Perspectives on Rural Markets • Rural Consumers = Poor Consumers? – Paisa packets and sachets • Rural Consumers ≠ Poor Consumers? • Seek value. Always did. – Value then was availability – Today it is much more. 27-12-2015
- 29. Rural Consumers Leapfrog Technologies • PCs to Laptops • Landline to mobile • Feature phone to smartphone • Compact to Sedan to SUV • SMS to MMS to OTT Apps (WhatsApp) 27-12-2015
- 32. The Changing Paradigms • Products & Services • Platforms • Partnerships & Communities • “Profits”: the three dimensions What remains the same: Problem Solving 27-12-2015
- 33. The rural consumer will make bigger leaps moving forward…. …… technology will be a bigger driver We need to ensure that they don’t leapfrog our proposition!
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