After about 14 years since liberalization and globalization measures have been initiated by the Indian Government, it is time to take stock of how Indian brands have fared vis-a-vis their multinational counterparts. We undertook three different projects to measure consumer perceptions towards Multinational Company (MNC) brands and Indian brands for automobiles, electronic goods and jeans. The results of the study confirm that while Indian brands scored on price, availability, service, and on all other variables that measure quality, technology, image and features, MNC brands have scored over Indian brands. The study thus underlines the need for repositioning Indian brands to change consumer perceptions.
In the early 1990s, when the Indian Government opted for globalization and initiated measures to link the Indian economy with the rest of the global economy, corporate India was not very confident of taking on the might of MNCs. During the last 14 years, however, we have been watching Indian brands getting transformed one by one to take on global challenges. Indica has made rapid strides, fighting the might of the South Korean and US car companies. In an intensely competitive market, BPL is fighting hard to hold its position and market share.
Peter Drucker called the automobile industry "the industry of industries". Indian automobile market is the most promising and emerging market with a lot of potential for growth. A rapidly growing middle class, latent demand with unsatisfied consumers and growing per capita incomes are all indicators of huge opportunities in the automobile industry. Consumers too have a plethora of models to choose from in the post-liberalization era as against a few models with which they had to be content with, prior to 1990.
Certain social and cultural changes provide a favorable platform for global brands. Jeans is probably one such product where global brands have an edge over Indian brands. The consumer is a rebel who no longer identifies with local values and seeks a new identity. |
