Friday, April 22, 2005

Budget economy?

I wrote about budget airlines, which led me to think about budget phones and now I think, there can be more than just airlines and phones.

Thinking about it, would we see a parallel budget economy emerge? The more I think about it, the more it seems likely.

In India atleast, Coke introduced a budget bottle for 5 rupees (1 USD = approx 43INR). Frooti, introduced a budget pack of, hold your breath, 2 rupees. Sachets (typically 'one use') of things ranging from cough syrups to shampoos to hair oils to shaving gels are available in a range of 1 to 3 rupees (most of which is the cost of packaging).

Initially, I believed that this trend is India specific, but I found here that it is not. In the US, things are big, bigger and biggest. In India, customers are used to "small". So, nobody buys a 500 ml shampoo pack are stuck with it for a few months. Buy a 1 rupee, one use sachet and throw! It cant get better. In the US too, in the midst of all the Greyhounds, Peterpans, Amtracks is an interesting budget bus service from Boston to New york, Fung-Wah. Fung-Wah is as budget as it can get.

So, is "budget"the future or is it the availability of parallel budget versions of most of the things we want?

1 comment:

Venks said...

u shld write more and more often....also abt things other than business...