Business Lessons that you simply Can Learn From The Streets Of India | Capt. Raghu Raman

 Business Lessons that you simply Can Learn From The Streets Of India | Capt. Raghu Raman


Part 1 

Capt. Raghu Raman
Capt. Raghu Raman

I'm getting to ask you a few a part of India that sometimes we do not kind of recognition as a proper industry or a proper business and typically it's But you'll see some glimpses of it, I'll play a brief movie for you as an introduction of this unorganized India an Inc I call it India Inc this term isn't coined by me. it is a term. That's been coined a few years ago, but it gives you a glimpse of That a part of India that we quite are Indian business that we quite deem granted and that we oftentimes don't even check out them, so let's begin by just watching a really brief montage of India on ink So during this 30-second clipping you saw an entire series of activities that happens around us I mean newspapers reach home and coconut milk comes flower delivery but upon the streets and that we forget that this complete Infrastructure and framework which just about runs our life on a day to day is additionally a former business and that we label them as marginalized Informal unorganized sectors over subsequent 10-15 minutes. I actually want to point out you ways much of injustice we treat labeling this industry as marginalized Informal unorganized because in every parameter of business metric they fairly often exceed What we concede to be the tier 1 companies those that are listed in Sensex nifty the large giants the unicorns and therefore the branded organizations i do not skills many of you're aware that on the brink of 50% of India's GDP is Contributed by the unorganized industry not by the organized industry by the unorganized industry and people of you think that that FDI you recognize there's a big celebration that happens whenever I've di inflows are available FDI inflows haven't exceeded quite 7 percent of India's GDP ever 50 percent comes from the unorganized industry The unorganized industry employs on the brink of 90 percent of our workforce India features a workforce of about almost 500 million and 90% of that's Employed by the informal industry by the unorganized industry and as I'll show to you With one example after the opposite they also perform just about in every metric better than 

Tier one businesses or businesses that we normally concede to be the benchmarks or in many cases the Aspirational companies that we would like to hitch I'm sure many of you would like to have seen these stores these bookstores these food counters here You see an example of a bookstore on a That happens during a payment exceeds by several multiples the return of investment that happens within these big malls that you simply simply simply see the shiny malls the chrome and glass and therefore the branded stores the payment actually delivers a way the better rate of return for each rupee that's invested during a business over there These books that you see stacked within the payment you'd have also noticed tons of|that several"> that a lot of vendors carry these books in their hand now those of you who are Marketing students or who are studying? FMCG businesses you would be taught that there is an entire science in the placement of products in the shelf space actually the self shell place is extremely actively Contested and fought for and there is an entire design principle that enters it My sense is that the shelf space that you see this old man carrying He has got to carry the set of books and certify it by his equity he has got to confirm that each book that he adds on which is another 200 grams and each three to four kilos that he carries on a day to day and by the way, once you carry 3 or 4 kilos for quite a few of hours It doesn't desire 3 or 4 kilos it feels much much heavier matter of fact I tell a lot of my other friends that if you want to know that you simply have arrived Then you'd like to seek out your book during this stack if it's there during this stack then this old man has certified That your book goes to become a best-seller immediately you see a Salesman and he's a sells boy he's a Salesman sales boy Who is selling flowers in in and you would have seen them in traffic lights then many other places? 

This sales boy who features a 30% margin The flower that he sells to you for 10 rupees it costs him 7 rupees to accumulate that and he's got a 30% margin More importantly he can offer you a 50% discount on the spot if he likes your face If you're trying to urge even a 5% discount in our organised business if you are trying to implement a 5% discount that call has got to travel all the high to the CX so in some cases the board level then come down from there, and by the time that call comes the chance has already been lost this is often an example i would like for instance to point out you ways the distribution of wealth within the informal sector is way more equitable than the formal sector, so suppose you eat a plate of idly from a Vendor during a footpath, and he charges you twelve rupees for that plate He keeps only three rupees of that twelve rupees the remaining nine rupees goes into the whole supply chain the people that Watch the utensil the people that grind the dough the people that bring it a really "> during a n auto rickshaw they're those who catch on if you eat an equivalent plate of idli in a five-star hotel Which costs you about four hundred rupees? the majority of that cash is kept by the establishment and a very minuscule percentage of that really reaches into the ecosystem The third example I would like to point out is that the fluidity with which these businesses operate What you're seeing up here may be a street vendor? Any idea what he's selling he's selling something for a festival What festival would that be? holy This street vendor and many vendors like him they need to vary their entire inventory their supply chain their target segmentation their pitch the tactic by which they sell monthly month and a half, in order that they actually change their entire supply chain their entire business model quite twelve times during a year now compare that with the business transformation on an organizational realignment that big organizations attempt to do and i am given to know from management gurus

That it takes anywhere between five to seven years to implement organizational transformation Which this market does twelve times during a year? that is the quiet community that they need - the type of agility with which they will operate If you check out this marketplace my sense is I can see more entrepreneurship happening during this crowded marketplace Then you'll find within the Silicon Valley or in incubation centers and let me explain this to you you would possibly have noticed that once you attend these marketplaces Or or or these red lights suddenly a replacement product will emerge sometimes. it'll be a toy sometimes it'll be ahead massager sometimes. It'll be a sort of a fountain to wash car Sometimes it is the ensign on the 15th of august or 26th of January Or is that this Christmas hatch that you simply saw a couple of days ago now attempt to visualize what proportion planning has got to enter this complete process of deciding the? Marketing slots throughout the year the availability chain of the equipment that has got to are available the toys that need to be purchased from China brought in up here the distribution that has got to happen the simultaneous launch of that product on an equivalent day at every red light at every crossing Unsold inventory has got to be taken back the income has got to be managed it's to be done or basis of trust because there are not any SA P. No, no business software there's no Microsoft Outlook to form all of this happen and every one of this happens seamlessly it happens with none Asset sham with none fee key or NASSCOM or any industrial body Which is supporting it happens with none T. Rai which regulates the? . It's a civil right employer. Whether you're a man woman child transgender Educated illiterate old young matter of fact many of those people that might mention to you only now Usually find their jobs only within the unorganized sector I mean if you are taking a poll of what percentage of companies employed transfer sites or employ a Handicapped people or employ aged people You'll realize that it's only the unorganized sector Which takes them in adopts them and provides the ability to earn a living when the organized sector Has either abandoned them? Or don't even check out them you check out how they need to vary their synergies literally on a day to day the seller that you simply see was selling those snacks within the morning he sets up that store ahead of Shivaji Park or places where people Are going out and jogging and he sells a special quite? Snack within the morning within the evening he sets up the shop ahead of a package store And he sells a special kind of snack so within the morning and therefore the evening he trips his business model. He'll shift his customers He leverages different synergies within the same city at different times of the day the last person you see thereon slide may be a tailor in fashion Street, actually, he's a clothes owner shop owner in fashion Street and a few of you want to are to Fashion Street, right? does one realize that there are? identical quite 150-200 Identical stores, there's no difference Yes, right most of the purchasers who come to fashion Street or many many such streets everywhere India they go to return just one occasion so there's no customer repeatability there's nothing there in 30 seconds or one minute of interaction This tailor has got to visualize the dimensions he has got to detect that garment 

And it's to happen within the first or the second fit Otherwise that customer will move to the subsequent store now that's the type of agility that is the quite? innovation that is the kind of customer understanding that these people need to do literally on a day to day I also believe That there are more management lessons within the street out there than in many of the bee schools put together and let me offer you this instance so some years ago. I used to be working during a company called the first choice, and that I had gone to Delhi in Delhi there's this Pragati Maiden and a few of you would possibly have known it and my colleague was also a CEO of another company, and he was using this chance in Delhi to brief his local team So his team had gathered around him And he was kind of reviewing their performance or briefing them or whatever and since it had been none of my business I used to be standing on the side, but once I was standing on the side I noticed a guttersnipe who saw this gang of individuals and type of you recognize walked up to them And he started begging and posing for money So my friend was busy. you recognize briefing his people and he was getting irritated by him, so he tried to shoo off This kid in it told the child to travel away but the child goes the child kept standing there and After a while, my friend got a touch irritated and out a sheer irritation He started trying to find a change in his pocket which in fact was the cue For the remainder of the subordinates to right away pull out change from their pocket and hand it over to their CEO then he picked out a coin from the palm happened to be a Five rupee coin Which those days was a really you recognize a considerable amount of cash? And he gave it to the child was also surprised that he got such a lot of money But he was very happy And he started running as he was departure a few of other kids saw that he had got this money and that they tried to grab it out of his hand but he fought them off and he managed to succeed in his headquarter so to talk and lots of sat over there There was another kid with him who obviously was a younger brother And he nudged that child and he pointed towards this group of individuals and told him to travel and pick. you recognize try his luck with this set of consumers Now I would like to means 4/5 management lessons that these kids know intuitively the primary lesson they know is to speak to the choice albeit it's not the decision-maker who gave the cash came from elsewhere But they knew the way to ask the decision-maker the second lesson They know is persistent space so albeit my friend told him to travel away first.

Second Part Coming Soon