Preparing for a wedding in the
family exposes one to the informal sector. There is an army of people working
on various aspects of the wedding and it is an alive and thriving economy with
various kinds of players. There is management excellence, skill and specialization,
process orientation and quality checks. There is also an appalling lack of
financial strategy and cash is king.
First, if one allows entrepreneurs
into an activity, one creates a thriving ecosystem of ideas, innovation and specialization.
From the caterer to the florist, decorator to the mehandi artist, each one has
extended the range of products and services that they offer, so they are able
to thrive in the competitive marketplace and offer value that they can charge
for. The list of things they do is too long and a far cry from the simple
weddings of the past.
Rituals that were long forgotten
have made a comeback, dug out by an enthusiastic wedding planner who will
arrange it in minutest detail. Weddings have become an industry run by this set
of entrepreneurs. Second, an informal market hurts both buyer and seller. A florist,
who has managed to get enlisted with a large hotel, can charge a bomb for the décor,
while an informal artist who is unknown scrambles to find mandates, even at a
fraction of cost.
Third, it is tough to find the
basis for pricing when products and services are so customized. The sellers
ensure that standardization is shunned wherever possible. From invitations that
will be custom designed, to garlands that will be strung to match, every
service provider will persuade the buyer to customize. Fourth, it is amusing to
see how this market uses technology. Whatsapp dominates the scene, with image and
videos flowing up and down all through the planning process.
Fifth, most of the service
providers suffer from poor money management practices. Working capital is a big
headache. Sixth, every one of them hates taxes. The demand side of the wedding
market is driven by the cash rich tax evaders. In an age when taking a break
from work to meet friends and relatives is so sought after, weddings offer the
perfect opportunity for image crafting at one end and thanksgiving on the other
and all things in between.
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