Over the past few months, I have been hearing the question, “given the current economic slowdown, is now a worthwhile time to invest in building brands in emerging markets like China and India?” In my opinion, the answer to the question is a resounding “yes.” Despite the global economic slowdown, China and India remain two growth engines of world economy and present long-term opportunities, especially when you factor in their growing brand consciousness and middle class.
If you’re like me, you have a long shopping list this holiday season. But have you ever stopped to think where the products you purchase come from? Chances are, those flowers you ordered online came from flower farms in Latin America. The hand-crafted bracelet you bought in a department store could have come from Bali or even India.
This is not just a sign of the times. Over the past three centuries, the levels of access people have had to goods, services and even each other has risen dramatically.
What a tragedy that's unfolding in Mumbai. The financial center of India is under siege. Terrorist outfits equipped with modern arms and ammunition entered several prominent establishments like the Taj Mahal Hotel, Hotel Oberoi and Trident, Chattrapati Shivaji Rail Terminus and wreaked mayhem! My heart cries out for all those impacted by this senseless tragedy. The unknown innocents, the brave policemen who died answering the call of duty, visitors to India who had come for business or pleasure - the number of deceased has crossed the 100 mark as I write this.
The U.S. and India may be thousands of miles apart, but in many ways, we are getting a lot closer. One sign of growing U.S.-India ties is the introduction of direct flights that connect the two countries. It's a relatively new phenomenon and was definitely nice to get on the Boeing 777 aircraft in New Delhi and get off in New York, albeit after 15 hours!From a business perspective, I also wanted to share some reflections from the conversations I had during my recent visit to India:
"Be fearful, but don't panic". I always like short and simple conclusions that I can understand. These words were spoken by a prominent economist in India after a thoughtful two-hour discussion of the current economic meltdown and its implications in India. Some excerpts are below.
