2014: The Year of Elections and E-commerce

Another year is on the end and India is on the positive side of the growth bench. The year was more of the E-commerce, Elections, Digitalization, and their advertisement on Social Media. E-commerce sector got Billions of funding from other countries whereas Elections in India were the example of role of Social Media in attracting, delivering message, and knowing people. In both areas, Advertisement on social media played a big role. In my opinion advertisement, growth in 2014 was more than any other year.

This year, according to an estimate, advertising spends were increased by 12.5%. E-commerce was clearly the dominant category that showed significant increase in spending. Instead, the business ended up growing 10%. E-commerce companies including companies those that run popular sites Flipkart, Snapdeal, Jabong, Olx, and Quickr spend around Rs. 750 Crore in advertisement. These companies launched TV commercials, and in the un-up to the festive season that started in October, many companies went into advertising drive. It is not sure if e-commerce companies will remain as aggressive with their advertising in 2015.

It is a small component of India’s Rs.38 Trillion overall retail trade industry. Yet the, e-commerce format with sales of Rs. 1 Trillion managed to create the buzz in 2014. The year highlights were, Amazon raised $2 Billion in Indian e-commerce space followed by Softbank invests $627 Million in Snapdeal and $210 Million in Ola cabs. Flipkart also gets $1.7 Billion funding, taking valuation at $7 Billion. Footfalls in shops during festive season drop in favor of e-commerce and many more in the sector.

Advertising in Elections came on the back of a Rs. 300-350 Crore blitz by BJP in the parliamentary elections it won and another Rs. 200 Crore by the Congress. This year was more into Digitalization in India. Digital Advertising was more than the print advertising. Government spent Rs. 251 Crore on print advertising between April and November, 20.3% lower than the same period a year ago. Between April and November, Spending on Television advertisement also declined by 8.43%. Digital advertising grow by 30%.

Except ads, Elections in India saw a major change. People came into engagement through Social Media, Radio ads, and all the campaigns launched by PM were successful in making some impact. Everyone was aware of the activities of PM and other leaders. On the other hand, Indian Economy holds a momentum of growth. Inflation came into control at the end of the year. Oil price saw major decline after a decade and decline of $1 in Oil price, save India Rs. 3500 Crore.

Investors and businesses from other countries are investing in India because they find a promising and consistent government in country. PM vision of converting cities into smart cities and bringing in technology in every sector will improve work environment in India. Small businesses will grow and more business will emerge. Agriculture sector will also be benefitted, which holds the 52% contribution to Indian GDP. After so much in 2014, experts see better times ahead. There is high probability of Interest rates being cut. More spend on advertising will be there and everybody is hoping that more money will come in the country.

Chef and Food Truck in India

Over the past five years, the food truck sensation has spread across America serving consumers everything from Japanese Pizza, grilled cheese sandwiches with truffle oil and too many other versions of comfort with a gourmet twist to count. Few days back, I came to know the about the same thing in India. It is India’s first Mexican Food truck introduced by five-star Lalit Hotel Chain ‘The Lalit Food truck Company’.

I saw Lalit Food truck at my college fest serving delicious, cheap, and diverse food. I could not stop myself without ordering and interacted with the chefs preparing food. When I read about the Food truck in India, I was so excited and suddenly it reminds me of a movie named ‘Chef’. It is a comedy genre movie released in 2014, where the man does the same type of business. It is the story of a chef Carl Casper who quits his job at a restaurant and launches a food truck business.

The same movie story I shared with the Lalit Food truck chefs. The reason because in the movie ‘Chef’, Carl Casper son, make use of Twitter to go viral in United States. His son was a young teenage kid who knows how to operate Twitter. He clicked photographs of people eating food, make trend on Twitter, and tweet regularly whenever they sell food. This helps his father Food truck business to go viral and increase his business sales. Customers were tweeting back to him, asking him to visit their area, gave him feedback on tweets.

This is a good movie, which tells about the use of Twitter for a Business. I shared the same story with the Chef of Lalit Food truck and told them that they can also go viral by social media. Social Media will help them to increase their business awareness and go viral in the country. In a country like India where people are food savvy, they will surely read and go for it. The best thing about the Food was it was ready in two minutes and it was affordable too. Food was so delicious that now I had an option of eating irrespective of outlets like McDonald's, Burger King, KFC, and other places.  

I found five items on their menu i.e. Crispy Veggie Taco, Falafel, Vegetable Tortilla Wrap, Vegetarian Burger, Churros, and French Fries. Next time, I am going to order again and this time I will order and taste something new from last time.

Mobile Technology will charge Indian Economy

Over the last few decades, the Indian Economy has witnessed a significant transformation. From being primarily an agricultural economy, the services sector has overtaken and has become the leading contributor to growth. E-commerce sector is also emerging as the largest contributor to growth of Indian Economy. Within the services sector, the communication sector has grown at an astonishing 25.7% from 2000-01 to 2008-09. Even during the financial crisis year of 2008-09, while other sectors slowed down, communication sector continued its forward march.

Since then, the importance and role of telecom sub-sector and services is well known. Rising per-capita income and introduction of affordable handsets and lowest call rates have all led to an explosion in the subscriber case. India is the second largest user of mobile in the world with 900 Million users in the world, it accounted for 12% of world’s online population. Findings reveal that every 10% increase in mobile penetration rate leads to a 1.2% increase in GDP.

In last 2-3 years, e-commerce sector emerged as the astonishing business sector. E-commerce companies revealed that maximum number of users explore and order products from mobile. Therefore, companies are shifting their marketing focus towards mobile technology. In the next five years, E-commerce sector will contribute up to 2% to Indian Economy. Mobile apps are becoming the key thing for every company and business today.

For developing markets, basic mobile services still dominate and mobile data is the next wave of development. A doubling of mobile data use leads to a growth in the GDP per capita growth rate of 0.5 percentage points. Telecom companies are coming with 4G penetration in the market, which will be new boost to economy. Research said that, a 10% rise in 3G-penetration increases GDP per capita growth by 0.15 percentage points.

Next thing, which will charge Indian Economy, is the Internet. Every business is dependent on Internet these days. No apps, no site can run without Internet. It has become the necessity of human being today. Mobile phones are more useful when they are connected to Internet. India lacks behind in providing good internet connectivity to its citizens. However, government and big firms like Google, Facebook are working on drones project to provide Internet connection to all citizens across the world.

There are several other benefits of mobile phones. They significantly help to maintain physical and psychological health when family members move away from home. In addition, they enable women to maintain three roles within the household, simultaneously being wives, mothers, and wage earners. More mobile phones subscriptions are correlated with more democratic participation, less gender inequality and longer time spent in education. In all three areas, the impact of mobiles on social development indicators is stronger in developing countries. All these benefits of Mobile technology will charge Indian Economy. 

Bhopal Gas Tragedy – The Disaster of 1984

Thirty years have been passed since a poison gas leaked from the Union Carbide Pesticide plant in Bhopal killed thousands of people and left Lakhs survivors. It was the night of 2 December 1984, when 40 tons of toxic methyl isocyanate leaked from the plant. Many people died instantly and around 150,000 have been seriously affected.

After three decades, Lung and Eye complications are common among people in this area. Many also suffer from loss of limb function along with severe palpitations and recurring chest pain. Most victims have received 25,000 to 50,000 rupees in compensation, an amount that is far too small for medical treatment. The effect of this disaster can be measured until today. Thirty years before on the same day, suddenly a peaceful night was turned into people voice asking for help. This disaster is an example of poor Project Management.

The complaints started in 1976 when two workers complained about pollution inside the plant. Following this, in 1981, a worker was splashed with phosgene. When he removed his mask in panic, he ended up inhaling large amount of phosgene gas. He died 72 hours later. American experts visited the plant in 1981 and warned the UCC about a ‘runway reaction’ in the MIC storage tank. Local Indian authorities also warned UCIL about the same problem however, no constructive and preventive measures were implemented by UCIL, nothing from UCC either. After the plant was closed India also suffered a huge economic loss.

After so much of repeated warnings, authorities took no steps. Things would have been different if the project and factory works were processed properly. Plant was located closed to city because of transportation facility. A chemical plant should be located far from city. This incident changed the course of industries in India. A plant near to city is can be dangerous sometimes. Waste emitted by factories and harmful gases directly effects the internal organs of human beings and animals. This is also a reason why most of the river channels in India are polluted and animals suffer the most from it.

In my opinion, chemical plants must be built far from living areas and far from riverbanks. Industrialists should take proper steps in dumping waste and control on harmful gases, which effects living beings and humans. Then only a healthy and safe environment can be built. Projects are successful if they do not affect environment and living beings and then only a country economic conditions will improve.