Faith Lyons, J-Term Trip: Consumers and Markets in India

I knew I wanted to take a J-term class this year as it seemed like a great way to get to know a Professor better and to delve into a course of study for a short period of time. Over the summer, I fell in love with the idea of going abroad and chose India because of my interest in Social Entrepreneurship. I have been involved with Student Entrepreneurs for Economic Development (SEED) since my first semester at UVA and in Spring 2013, I was on a team of students that consulted for Social Story, a social enterprise platform operating out of Bangalore, India. I wanted on the ground experience learning about the challenges facing these high growth countries and a Commerce class in India seemed like the perfect fit.

The entire trip was fascinating. Weeks later I still find myself struggling with things I learned and experienced as it was so much in such a short period of time. However, I think my biggest take away was just how much opportunity exists there and in most developing nations. I supplemented my required course materials with McKinsey & Co’s Reimagining India and I framed much of my two week journey by focusing on the benefits of developing during the twenty-first century instead of the struggles of being so far behind. Reimagining India focused on the “leap-frog” effect and how countries like India were lucky in that they never had to waste money or resources investing in technology or infrastructure that would be out-dated within five years. They could plan ahead and begin building platforms that would provide the necessary resources for their citizens while also connecting them to the rest of the globe. However, it can be difficult to take this leap as we often view development as a step-by-step process in which certain milestones must be reached. We visited companies that are trying to innovate with 3G and 4G technology but who are also hindered by appealing to consumers who don’t have the resources to connect in that way. The company that I found most fascinating was Quikr, India’s version of Craigslist. The company is building an online platform similar to its American counterpart but still must invest the man-hours to send workers into communities to garner buy-in for using their platform. Many of their users do not have access to a computer or a smartphone with 3G connection and so they are forced to back-step and employ 20th century techniques with a 21st century business model.

I think the thing that most people in America would find surprising is the level to which relationships matter in Indian business. From raising capital to build a new Marriott franchise to disseminating supplies through local vendors, building and maintaining relationships is crucial to success in India. 

I was incredibly impressed with the service-centered business model of each of the companies, hotels and restaurants we visited. At one hotel, I had the unique experience of being tended to by six servers. It was overwhelming. I was offered coffee, water, eggs, toast, and fruit all at once and I was treated with respect. India as country is known for its excellent customer service and that was incredibly apparent from the moment I stepped off the plane. I think it would serve American businesses well if they would take note and begin to value customers as more than a way to add to their bottom line. 

India was incredible and as a group we had the opportunity to do a lot of really cool things. However, the most fun part of the trip was bartering in the markets. We had the opportunity to visit three markets while in New Delhi and Mumbai. The shops were full of beautiful scarves, souvenirs, shoes and trinkets. The shop keepers engaged us as we worked our way down to a price close to the one suggested by our guide. It was incredible to interact with locals and to experience the Indian marketplace. 

We spent our days visiting companies, exploring the city and historic sites. Every day was something different which made the experience absolutely incredible. We spent the first five days in New Delhi and took a day trip to Agra the city that hosts the Taj Mahal. We then journeyed to Mumbai where we had the opportunity to visit a Bollywood Studio. The class presented an opportunity to explore all aspects of Indian life – everything from eating at local restaurants and visiting multi-national companies to shopping in local bazaars and eating at India’s version of McDonalds, the trip was everything I hoped it would be and more! 

The markets I mentioned before presented an opportunity for cultural reflection. I wrote in the blog I kept throughout the trip that, “While I know it’s important to get the best deal for a product and not to overpay for a piece of cheap jewelry, it’s hard to remember that as I barter to reduce the price by Rs 50, which is less than a dollar for me, I’m cutting into the sellers profit, and possibly effecting his ability to feed his children.” Everywhere we went in India we were treated exceptionally well because we looked and acted like wealthy foreigners. In each situation, we held bartering power that the merchants and natives that we dealt with could not match. My life didn’t change if I decided not to buy that pink scarf with the elephant pattern but taking up 5-10 minutes of a shop keepers time bartering to lower a price can be the difference between feeding his children and going hungry.