|
Wednesday, January 4, 2006
Indian Consumers Spending
WSJ writes: "Unlike consumers in another emerging Asian giant, China, Indians appear more inclined to spend than save. One telling indicator is that India's gross national savings rate, or how much people earn over what they spend, is 26%. Although that is high compared with what Americans save, it is low relative to other Asian countries and about half China's rate. This trend has raised hopes that India will play a bigger role in stoking global demand, joining Japanese and Europeans in shifting the burden from the American consumer."
Great Product
Guy Kawasaki discusses the DICEE approach to great products:
Broadband Year
Om Malik puts together the highlights of the past year in the context of broadband:
Web on TV
WSJ writes:
Intuit and Quicken
The New York Times writes:
TECH TALK: 2006 Tech Trends: Mobiles as Next Platform
3. Mobiles are becoming the next platform. Mobile phones are not only more visible but they are also becoming more powerful. The positive feedback cycle between the mobile device’s capabilities and network speeds is akin to the hardware-software combo which powered the personal computer revolution. Mobiles phones are now becoming replacements for watches, cameras, photo albums, MP3 players and even credit cards. In emerging markets, they are becoming the lifeline for millions – bringing forth not just connectivity to those who’ve been deprived of it for long but also the potential for increasing incomes and opportunities. The next big thing will be around mobiles and data. The promise of 2000 when i-mode became the envy of the world is all set to be realised. John Battelle: “I repeat my mobile prediction from last year, in the hope that it will come true this year: Mobile will finally be plugged into the web in a way that makes sense for the average user and a major mobile innovation - the kind that makes us all say - Jeez that was obvious - will occur. At the core of this innovation will be the concept of search. The outlines of such an innovation: it'll be a way for mobile users to gather the unstructured data they leverage every day while talking on the phone and make it useful to their personal web (including email and RSS, in particular). And it will be a business that looks and feels like a Web 2.0 business - leveraging iterative web development practices, open APIs, and innovation in assembly - that makes the leap.” Fred Wilson: “Mobile is a platform that the current web giants don't control. The carriers control it today, but are going to lose that control slowly and surely over the next several years. This is a place where someone new can come in and shake things up.” James Kendrick: “With several new smartphones due to appear early next year with new features and cool appearances we should see this segment start to take off. The upcoming Treo 700w running Windows Mobile will see brisk sales exposing the technology to consumers who have never seen them before. This will escalate sales even further and other smartphones like the Motorola Q will be well met by computers. Carriers will continue to add download services offering all sorts of video and music that will make the smartphone fill a larger role in the consumer's daily life. When you add easy photo sharing of photos taken with integrated cameras that offer good quality images into the mix I think you'll see sales in numbers bigger than ever. Price concessions will need to be made by the carriers to bring the price point down low enough to generate mass market sales.” Mercury News: “The list of new features that $150-and-under mobile phones have or will have in a matter of months sounds a bit like the Ginsu knives commercial of old: It slices! It dices! Phones these days can play music, show television clips, swipe credit cards, scan product labels, act as debit cards, locate a person on a map, wire money to bank accounts and send video voice mail. Heck, They can even show full-length movies -- that's if anyone will want to stare at their phone for that long.” Tomorrow: Digital Home Related Entries: [All]TECH TALK: 2006 Tech Trends: SaaS, Emerging Markets [January 13, 2006] TECH TALK: 2006 Tech Trends: Free Voice [January 12, 2006] TECH TALK: 2006 Tech Trends: Multimedia [January 11, 2006] TECH TALK: 2006 Tech Trends: Peer Production and Syndication [January 10, 2006] TECH TALK: 2006 Tech Trends: Broadband Networks Everywhere [January 9, 2006]
|
Well... Can it not be inferred from this report that the income of Indians is also proportionately low, which causes their savings to be low. As a result they are left with a better percentage of their earnings to spend over consumables. Also the inflation factor may come into play.
Posted by NaveenWSJ being what it is will always tout consumer led growth. Basically spend your way to wealth. All consumption led economies are cyclic and the harmonic oscillations usually increase in frequency with time till the fundamental resource driving the cycle dries up.
A population's savings rate indicates 2 things.
1. The kind of social security provided in that country.
2. The cost of housing and basic transport vis a vis per capita.
If these two factors are equal all countries will have the same consumer absorption irrespective of race or geography. A further issue in western countries is that savings are actually discouraged and the economy will collapse if savings rate approaches that of any LDC.
http://valluvar.blogspot.com
Posted by Shivdiazepam | carisoprodol online | hydrocodone online
Posted by linda