Here’s one more whinge from me on poor customer service.
Last week, my credit card statement arrived in the mail. Perusing it on the weekend, I noticed something on there that looked amiss. There was a small transaction for a couple of dollars made to a payee called Blue Mountain City. I racked my brains to think what I could have bought there. Out came the big overstuffed shoe box of receipts and an hour later, I had nothing. More trawling through my e-mails, Paypal accounts and bank accounts – and still nothing.
The amount was small enough to let go. But going on the advise of my Facebook friends, I decided to take it up with Woolworths Everyday Money, who issued the card on behalf of HSBC. After spending 20 minutes listening to lovely ‘hold music’ on the phone, I was beginning to wonder if it was worth the time and effort. Then a call centre representative came on line. After ten minutes of proving who I was to her and providing the details of the transaction, and listening to more music on hold, the rep said “You’ll have to lodge a claim”. So I said, “That’s why I have called you up.” And she says” No. It’s a very simple process. You need to go online, log in to your account, look for a form to download, print it out, fill it in and fax it back to us.” At this point in time, I won’t repeat the expletives that crossed my mind.
Here I was, having spent half an hour of my time, politely waiting, explaining and proving who I was, and they would not accept a verbal complaint. So why did they go through all that rigmarole? And who uses a fax nowadays anyway?
“Oh!”, she added “If we find that the transaction is genuine, we will charge you a $10 fee”. So I asked “If you find it fraudulent, does it mean you will pay me $10?” The sarcasm was lost on the call centre robot.
Anyway, I spent the next half hour doing what the gods demanded for their appeasement - logging in, searching and locating the form, printing it, filling it, and faxing it across.
The next day, I get a call back from their customer service. After spending another 10 minutes verifying who I am, before they will tell me what the call is about, the guy on the phone explains “We have cancelled your card”. “Thanks for letting me know”, I said wryly. Again the sarcasm was lost on the script-reading robot.
“And”, he added, “you’ll get your replacement card in a week’s time. Then, you’ll need to go through a multi step process to activate your card. In the meanwhile, any transactions made against your account will bounce.”
That means, I’ll be without a card for a week, all my direct debits for my bills will bounce, and I will get charged about $20 each time that occurs. And once I get my new card, I have to re-set up all my direct debits. Including the one from Paypal, which if you read my previous post, is harder than getting a camel through the eye of a needle.
All because the bank’s much touted anti-fraud system did not pick up a shady transaction. I even wonder if the merchant who put this through will get as much as a slap on the wrist. So that made me wonder,
Why should a customer have to pay for what was Woolworths / HSBC’s incompetence in the first place? How can a bank run over it’s customers without so much as an apology, with scant regard to the inconvenience it puts it’s customers through? Of course, this is couched in the “This is for your own protection” BS.
Interestingly, several years ago, I had a similar fraudulent event on my Amex card. The difference in response could not have been more startling. The entire process was conducted on the phone, I had an emergency card replacement couriered to me the same afternoon, and I got a follow up letter a few weeks later to let me know the merchant had been suspended.
A satisfied customer: priceless!
Tuesday, July 27, 2010
Tuesday, January 12, 2010
Can cricket be the saviour of the Australian education industry?
The flurry of activity in the media and concerning student safety in Australia seems to have taken it’s toll. It is widely reported that visa applications by Indian students wanting to study in Australia have dropped by as much as 46% compared to the same time last year. While some of it can be attributed to the GFC (Global Financial Crisis), the media hype and the diplomatic war of words have definitely made a big dent in the market.
The education market, estimated at $15 billion, is staring down the barrel of losses in student numbers. This is going to be a year of empty classrooms for a number of private education providers. They are up against a perfect storm of forces – the Indian economy remaining buoyant through the GFC, the strengthening of the rupee against the US dollar making it attractive to prospective students, and the hit that Australia has taken in it’s reputation for safety.
Now, as a first step, for Australia to get her groove back, she needs a strong brand ambassador – someone that can work miracles, and I don’t mean Mary McKillop. The land of Oz could re-invent an advertising campaign with Lara Bingle’s ‘Where the bloody hell are you?’ sort of message? But somehow, my gut feel is that is not going to work. Even a ‘flawed’ Jennifer Hawkins is going to find it difficult to lure students back. But, nay, do not despair. I think I have found the perfect mantra to revival. Something that will make students return in droves. The answer, my friends, is cricket.
Ah, cricket, you say - not that chirpy insect, but the game. Indians are unique – they are born with one special chromosome dedicated to cricket. It runs in the Indian blood. As they say, some Indians are born with cricket, some learn it, and the rest have cricket thrust upon them. In a country of over 20 official languages and 25 states, the glue that binds them together is this game that the British introduced in their colonies, so they could keep getting humiliated for years after they quit those countries.
The businessman in me says there is definitely an angle here. If you have ever been to India, the one thing you will realise is that there is hardly any open space left to play a relaxed game of cricket. The contrast to the open landscapes of Australia is stark. In Mumbai, you could not play cricket without breaking your neighbour’s window or injuring an innocent passer-by. And, that is where Australia has a competitive edge.
What I am proposing is for an ‘Australian Cricket University’ to be set up. Similar to cricket academies that already exist in some parts of Australia and India, only they would be on a much larger scale. The primary intent would be for would-be and upcoming players from around the world (well, India mostly) to spend 2-3 years in a fully residential course developing their cricket skills. The course could allow the students to play on some of the best pitches in Australia, from the MCG to the Adelaide Oval. And the ones that shine in this would win a fast track ticket to regional or national teams.
Is there a demand for this, you may ask. Consider that cricketers in India have rock star status. They earn millions in endorsements and sponsorship in addition to match fees. And the match fees are nothing to scoff at either. For a single IPL season, a new face can make anywhere between $20K and $100K for 6 weeks of effort. Seasoned names can make millions. The Cricket University would provide the ones who can afford it a chance to shine and perhaps be picked by an IPL side.
And if the Cricket University could lure some big names into their fold, say the likes of Steve Waugh or Shane Warne, who are household names in India, there is no stopping it. Of course, a course of this magnitude would not come cheap. I would expect a student to pay about $40-50K for a year.
The biggest drawback would be that there is no guarantee of success in such a course. This is where the Cricket University would need to diversify it’s offerings. Apart from the gruelling training regime, students could actually study a number of courses, and probably earn a Bachelor of Cricket. It could be anything from public speaking skills (so they can ace that post match interview on TV) to commentary skills. The more mathematically inclined could choose cricket statistics or bookmaking. The media driven ones could move into becoming a cameraman or a animator for cricket channels. Some could make a foray into merchandising and selling cricketing equipment or even memorabilia.
In fact, it could spawn a huge industry, with students finding careers in publishing, media, physiotherapy, talent management, umpiring, or any one of those myriad industries that cricket supports. So, it would be unique in turning out graduates who can take the cricketing world by storm, either by playing at the highest level or by supporting the industry.
I’m sure the offering could be made attractive enough to attract a number of students. The more I think about it, the more feasible it looks. And where better to set it up than Bowral in NSW, the home of Don Bradman. Don enjoys celebrity status in India with thousands of tourists making the trip every year to visit Don’s museum in Bowral. (I suspect the reason he came to be looked on as a demi God was not just due to his batting prowess, but because he came out openly in support of Sachin Tendulkar, calling him the greatest batsman of all time).
Now, all I’ve got to do is find a venture capitalist, who is cricket crazy to stump up the initial couple of million dollars to set it up, and I can retire a rich man. Howzaat!
The education market, estimated at $15 billion, is staring down the barrel of losses in student numbers. This is going to be a year of empty classrooms for a number of private education providers. They are up against a perfect storm of forces – the Indian economy remaining buoyant through the GFC, the strengthening of the rupee against the US dollar making it attractive to prospective students, and the hit that Australia has taken in it’s reputation for safety.
Now, as a first step, for Australia to get her groove back, she needs a strong brand ambassador – someone that can work miracles, and I don’t mean Mary McKillop. The land of Oz could re-invent an advertising campaign with Lara Bingle’s ‘Where the bloody hell are you?’ sort of message? But somehow, my gut feel is that is not going to work. Even a ‘flawed’ Jennifer Hawkins is going to find it difficult to lure students back. But, nay, do not despair. I think I have found the perfect mantra to revival. Something that will make students return in droves. The answer, my friends, is cricket.
Ah, cricket, you say - not that chirpy insect, but the game. Indians are unique – they are born with one special chromosome dedicated to cricket. It runs in the Indian blood. As they say, some Indians are born with cricket, some learn it, and the rest have cricket thrust upon them. In a country of over 20 official languages and 25 states, the glue that binds them together is this game that the British introduced in their colonies, so they could keep getting humiliated for years after they quit those countries.
The businessman in me says there is definitely an angle here. If you have ever been to India, the one thing you will realise is that there is hardly any open space left to play a relaxed game of cricket. The contrast to the open landscapes of Australia is stark. In Mumbai, you could not play cricket without breaking your neighbour’s window or injuring an innocent passer-by. And, that is where Australia has a competitive edge.
What I am proposing is for an ‘Australian Cricket University’ to be set up. Similar to cricket academies that already exist in some parts of Australia and India, only they would be on a much larger scale. The primary intent would be for would-be and upcoming players from around the world (well, India mostly) to spend 2-3 years in a fully residential course developing their cricket skills. The course could allow the students to play on some of the best pitches in Australia, from the MCG to the Adelaide Oval. And the ones that shine in this would win a fast track ticket to regional or national teams.
Is there a demand for this, you may ask. Consider that cricketers in India have rock star status. They earn millions in endorsements and sponsorship in addition to match fees. And the match fees are nothing to scoff at either. For a single IPL season, a new face can make anywhere between $20K and $100K for 6 weeks of effort. Seasoned names can make millions. The Cricket University would provide the ones who can afford it a chance to shine and perhaps be picked by an IPL side.
And if the Cricket University could lure some big names into their fold, say the likes of Steve Waugh or Shane Warne, who are household names in India, there is no stopping it. Of course, a course of this magnitude would not come cheap. I would expect a student to pay about $40-50K for a year.
The biggest drawback would be that there is no guarantee of success in such a course. This is where the Cricket University would need to diversify it’s offerings. Apart from the gruelling training regime, students could actually study a number of courses, and probably earn a Bachelor of Cricket. It could be anything from public speaking skills (so they can ace that post match interview on TV) to commentary skills. The more mathematically inclined could choose cricket statistics or bookmaking. The media driven ones could move into becoming a cameraman or a animator for cricket channels. Some could make a foray into merchandising and selling cricketing equipment or even memorabilia.
In fact, it could spawn a huge industry, with students finding careers in publishing, media, physiotherapy, talent management, umpiring, or any one of those myriad industries that cricket supports. So, it would be unique in turning out graduates who can take the cricketing world by storm, either by playing at the highest level or by supporting the industry.
I’m sure the offering could be made attractive enough to attract a number of students. The more I think about it, the more feasible it looks. And where better to set it up than Bowral in NSW, the home of Don Bradman. Don enjoys celebrity status in India with thousands of tourists making the trip every year to visit Don’s museum in Bowral. (I suspect the reason he came to be looked on as a demi God was not just due to his batting prowess, but because he came out openly in support of Sachin Tendulkar, calling him the greatest batsman of all time).
Now, all I’ve got to do is find a venture capitalist, who is cricket crazy to stump up the initial couple of million dollars to set it up, and I can retire a rich man. Howzaat!
Friday, January 08, 2010
Is Australia a racist country?
This seems to be the question the world is asking. Well, I exaggerate… it’s probably only the top two test cricket playing countries who are asking the question. And I, as a 11 year veteran in Australia, still on my Indian passport, think I have found the answer. And the answer is…drumroll, please…. well, if I gave you the answer now, you wouldn’t read the rest of this post, would you?
The unfortunate murder of Nitin Garg in Melbourne has charged up a number of people, and in my view, rightly so. In my view, what went wrong was Julia Gillard, the Deputy Prime Minister trying to rule out race as a cause at a press conference. That was a poor choice of strategy. By pre-empting the police investigation to categorically declare that race was not a factor only inflamed passions even further.
B Chandrashekhar, my law teacher at IIM Bangalore used to say that ‘Justice not only needs to be done, but must also be seen to be done’. This is the basic premise that the pollies have forgotten. The truth may be that it may have been an opportunistic crime. But people need to watch the judicial machinery in action, reaching that decision, to be satisfied that it is so. A politician making a statement on a judicial matter, and offering no evidence in support, adds insult to injury.
Not only do the victim’s families and their supporters feel they have been unfairly denied a chance of justice, they also begin to believe there is no chance of justice in such a prejudiced world. And inevitably, conclusions are drawn – ‘They are trying to hide something’, ‘sweep it under the carpet’, ‘protect someone’…the rumours grow by the day.
The only way to prevent this is to let justice step in and take it’s course, and be seen to take it’s course. Most Indians would have more faith in the Austrealian justice system than in the Indian system. The Indian system is notoriously fallible, and it takes years to get any sort of result, let alone a conclusive one.
Where is Australia’s chance of redeeming their ‘safe’ and pristine image?
Aussies should not underestimate the power of the media in India. There are dozens of 24-hour news channels bombarding people with messages round the clock. When a message is repeated often enough, it becomes the truth, in people’s minds. These channels are giants compared to the likes of Channel 7 and 9. They have reach and influence thousands of times greater than the Australian media. It is that media that the PR gurus need to work on.
Being more open with the Indian media is very important. Providing hour by hour updates on the progress of investigations may be a good idea. More news of ‘No News’ is better than idle speculation. At least, viewers get the feeling that there is some progress. And this is the concept of justice being seen to be done.
The police need to be in the limelight and on the front foot - sharing information, appealing for witnesses, door knocking, looking at CCTV footage. Maybe they are already doing it, but they need to step it up a notch and share their efforts with the Indian media. Maybe, offer for an Indian TV crew to go with one of their officers canvassing the neighbourhood; let a crew into the investigating room. All this adds credibility, and creates news without speculation.
Otherwise, a secretive approach just leads to speculation of laziness and KKK sort of behaviour that a recent cartoon alluded to. There is a big ‘Show and Tell’ angle to this investigation that the police seem to have forgotten. Without regular news, news agencies will invent what they can to create news, and that can only be detrimental.
Looking back on personal experience, I had the unfortunate experience of having my car broken into, and the stereo stolen a few weeks back. The police duly turned up, took my statement, and then disappeared. No follow up. No progress reports. Maybe, there was no investigation. Maybe, there was an investigation and there were no leads, but there was no sharing of information. Even a simple ‘There have been 3 similar incidents in your suburb’, or ‘We have arrested a similar offender this week’ would help ease the suspicion that they have done nothing about it.
Instead, in my case, the police got back a few weeks later, through a leaflet drop in the area warning people not to leave valuables in the car. In my case, should I have detached a 5kg stereo system that is securely fastened into the dash of the car every time I lock my car for the night? That is ridiculous. And yet, this is exactly the approach the police have taken on the Nitin Garg case – Blame the victim.
Blaming the victim for carrying ‘expensive’ iPods, for using a shortcut through a park – this is absolutely ridiculous. It is almost as ridiculous as when, a few years back, an Imam blamed victims of rape for dressing up in a manner that provokes crime. The police in Australia need to get off their high horses and stop blaming victims. Of course, talking about reasonable precautions is fine. But to ask people not to carry iPods is taking it too far.
In my view, this calls for a radical overhaul of the police system in Australia:
a) They need to work on releasing information quickly
b) They need to work with the media, not against it
c) They need to stop blaming victims for provoking attacks – may be true, but is just insensitive.
d) They need understanding of other cultures and how they perceive things
e) They need to show results quickly
f) They need to get pollies to stop shooting off their mouth before they have made an investigation
g) They need people on the force that speak Indian languages – maybe even an Indian taskforce that concentrates on crimes against Indians
h) Show the world that they are fighting crime rather than booking people who do not stop at a ‘Stop’ sign
And finally to answer my question ‘ Is Australia racist?’ Well the answer, unsurprisingly, is ‘Yes, there is racism in Australia, albeit in small pockets of the population’. Does that make Australia racist? I am not sure it does. Anyone who thinks otherwise has their heads buried in the sand. After all, this country has a history of migration, Whites only policies and a One Nation party.
But then, I believe there is nothing wrong with it. We are all entitled to our views, opinions and our prejudices as long as it doesn’t transgress the line of thought to become action and hate crimes.
The unfortunate murder of Nitin Garg in Melbourne has charged up a number of people, and in my view, rightly so. In my view, what went wrong was Julia Gillard, the Deputy Prime Minister trying to rule out race as a cause at a press conference. That was a poor choice of strategy. By pre-empting the police investigation to categorically declare that race was not a factor only inflamed passions even further.
B Chandrashekhar, my law teacher at IIM Bangalore used to say that ‘Justice not only needs to be done, but must also be seen to be done’. This is the basic premise that the pollies have forgotten. The truth may be that it may have been an opportunistic crime. But people need to watch the judicial machinery in action, reaching that decision, to be satisfied that it is so. A politician making a statement on a judicial matter, and offering no evidence in support, adds insult to injury.
Not only do the victim’s families and their supporters feel they have been unfairly denied a chance of justice, they also begin to believe there is no chance of justice in such a prejudiced world. And inevitably, conclusions are drawn – ‘They are trying to hide something’, ‘sweep it under the carpet’, ‘protect someone’…the rumours grow by the day.
The only way to prevent this is to let justice step in and take it’s course, and be seen to take it’s course. Most Indians would have more faith in the Austrealian justice system than in the Indian system. The Indian system is notoriously fallible, and it takes years to get any sort of result, let alone a conclusive one.
Where is Australia’s chance of redeeming their ‘safe’ and pristine image?
Aussies should not underestimate the power of the media in India. There are dozens of 24-hour news channels bombarding people with messages round the clock. When a message is repeated often enough, it becomes the truth, in people’s minds. These channels are giants compared to the likes of Channel 7 and 9. They have reach and influence thousands of times greater than the Australian media. It is that media that the PR gurus need to work on.
Being more open with the Indian media is very important. Providing hour by hour updates on the progress of investigations may be a good idea. More news of ‘No News’ is better than idle speculation. At least, viewers get the feeling that there is some progress. And this is the concept of justice being seen to be done.
The police need to be in the limelight and on the front foot - sharing information, appealing for witnesses, door knocking, looking at CCTV footage. Maybe they are already doing it, but they need to step it up a notch and share their efforts with the Indian media. Maybe, offer for an Indian TV crew to go with one of their officers canvassing the neighbourhood; let a crew into the investigating room. All this adds credibility, and creates news without speculation.
Otherwise, a secretive approach just leads to speculation of laziness and KKK sort of behaviour that a recent cartoon alluded to. There is a big ‘Show and Tell’ angle to this investigation that the police seem to have forgotten. Without regular news, news agencies will invent what they can to create news, and that can only be detrimental.
Looking back on personal experience, I had the unfortunate experience of having my car broken into, and the stereo stolen a few weeks back. The police duly turned up, took my statement, and then disappeared. No follow up. No progress reports. Maybe, there was no investigation. Maybe, there was an investigation and there were no leads, but there was no sharing of information. Even a simple ‘There have been 3 similar incidents in your suburb’, or ‘We have arrested a similar offender this week’ would help ease the suspicion that they have done nothing about it.
Instead, in my case, the police got back a few weeks later, through a leaflet drop in the area warning people not to leave valuables in the car. In my case, should I have detached a 5kg stereo system that is securely fastened into the dash of the car every time I lock my car for the night? That is ridiculous. And yet, this is exactly the approach the police have taken on the Nitin Garg case – Blame the victim.
Blaming the victim for carrying ‘expensive’ iPods, for using a shortcut through a park – this is absolutely ridiculous. It is almost as ridiculous as when, a few years back, an Imam blamed victims of rape for dressing up in a manner that provokes crime. The police in Australia need to get off their high horses and stop blaming victims. Of course, talking about reasonable precautions is fine. But to ask people not to carry iPods is taking it too far.
In my view, this calls for a radical overhaul of the police system in Australia:
a) They need to work on releasing information quickly
b) They need to work with the media, not against it
c) They need to stop blaming victims for provoking attacks – may be true, but is just insensitive.
d) They need understanding of other cultures and how they perceive things
e) They need to show results quickly
f) They need to get pollies to stop shooting off their mouth before they have made an investigation
g) They need people on the force that speak Indian languages – maybe even an Indian taskforce that concentrates on crimes against Indians
h) Show the world that they are fighting crime rather than booking people who do not stop at a ‘Stop’ sign
And finally to answer my question ‘ Is Australia racist?’ Well the answer, unsurprisingly, is ‘Yes, there is racism in Australia, albeit in small pockets of the population’. Does that make Australia racist? I am not sure it does. Anyone who thinks otherwise has their heads buried in the sand. After all, this country has a history of migration, Whites only policies and a One Nation party.
But then, I believe there is nothing wrong with it. We are all entitled to our views, opinions and our prejudices as long as it doesn’t transgress the line of thought to become action and hate crimes.
Monday, December 21, 2009
The road to a private label car. Are we there yet?
During the last year, as we beleaguered our way through the GFC (Global Financial Crisis), the rise of private label has been apparent. As people look to cut costs, private label looks very attractive, providing a quality product at a budget or, in some cases, a bargain price.
While the retail industry has been known for private label for a fair while, we are beginning to see private label creep up into larger value items. With Aldi selling computers, treadmills and LCD TVs under their own brands, it shows that consumers are more accepting of an ‘unbranded’ or ‘store branded’ products as opposed to their branded equivalents.
But how far will this acceptance stretch? Can this be extended to high value items. Take a car, for instance. Would a family be willing to purchase a ‘store branded’ car rather than a branded one. In my view, the simple answer is YES, and when that happens, it will be the biggest paradigm shift that will occur in the auto market place.
Badge Engineering
I’m actually surprised no one has ventured into it seriously before. We have seen the same car being sold under several badges, in what is called badge engineering. The Ford Laser and the Mazda 323 were essentially the same car, apart from the badge. You can find a full list of ‘badge engineered’ cars here http://en.wikipedia.org/wiki/List_of_badge_engineered_vehicles
Typically, badge engineering is used in different markets where the same car is sold, although due to the concentrated ownership of car companies, it is cheaper to use multiple badges on what is essentially the same car. To the consumer, it looks like they have a wider choice in the market, and they pay different brand premiums for the same car.
Why does it make sense?
There is only so far that car companies can push their sales. There is a brand image that often stands in the way of increasing market shares. You could never try to sell a BMW at a budget price, or a Hyundai for the price of a BMW, even if theoretically they were identical cars. You would do your brand image permanent damage if you tried that. So, if a large carmaker has invested billions of dollars in a car making facilities, and volumes were dropping, in order to recoup their fixed costs, it would be a good idea to fill up spare capacity with a differently branded car.
In fact, it would appear that some private labels are trusted by customers more than regular brands. I would not be surprised, if in Australia, Bob Jane, which has it’s own range of private label tyres ranked higher in trust than a number of international brands such as Dunlop or Goodrich. It would appear that by capitalising on this section of the market, a viable long term brand could be built.
For the manufacturer, it also means not having to spend much on marketing and advertising. It also gives them economies of scale in manufacture and distribution.
What are the pitfalls?
The private label market is not all rosy from a manufacturer’s perspective. Firstly, there are lower margins in private label products, cars included. Secondly, if it looks too similar to a current brand, it could devalue the manufacturer’s own brands. Thirdly, there is a very high risk of cannibalisation of the manufacturer’s own market share from sale of private label cars.
From a retailer’s perspective, the key issue is capital required. To set up a distribution, and potentially a service network independently could be quite expensive. Also, the retailer has to rely on the manufacturer for warranty and service related issues.
Who would be the most likely candidate to enter the market?
Enough said, who do I think has the best chance of creating a viable private label product in the auto industry? Obviously, a current player in the auto industry with a wide distribution network would be ideal. It could be a tyre chain like Goodyear or Michelin, or a service network like Ultratune or K Mart Tyre and Auto. Or it could be an after market retailer like Repco or Supercheap auto. Even an auto services player like NRMA or an insurance company like AAMI could jump into the fray.
All things considered, my money would be on K Mart Tyre & Auto to be the most successful in this space. They already have a large network of service outlets. They have deep pockets through Wesfarmers that owns them (along with Bunnings, Target and Coles). They have a brand name that is well recognised in the market and in the racing industry. In my view, all the planets are aligned for K Mart to get into the private label game.
Who would be the manufacturer? Now, that is more difficult. Most of the obvious choices, such as Toyota and Honda) would not want to be associated to prevent brand damage and cannibalisation. However, I believe an offshore manufacturer that is not yet strong in the country would be the best bet. I believe the market is right for Tata Motors to enter the market. Now that they own Land Rover and Jaguar, and also manufacture significant number of vehicles under the BMW and Mercedes badges, they would be ideally positioned to take advantage of this. They could very easily take a car from a different market and rebadge it for the Australian market.
To top it off, it provides them an entry into a market that they may one day want to get in on their own.
But anyway, that’s my view. And it’s all speculation. But I sure would like to see the day K Mart begins to sell Tata Indicas or Sumos under their brand name.
While the retail industry has been known for private label for a fair while, we are beginning to see private label creep up into larger value items. With Aldi selling computers, treadmills and LCD TVs under their own brands, it shows that consumers are more accepting of an ‘unbranded’ or ‘store branded’ products as opposed to their branded equivalents.
But how far will this acceptance stretch? Can this be extended to high value items. Take a car, for instance. Would a family be willing to purchase a ‘store branded’ car rather than a branded one. In my view, the simple answer is YES, and when that happens, it will be the biggest paradigm shift that will occur in the auto market place.
Badge Engineering
I’m actually surprised no one has ventured into it seriously before. We have seen the same car being sold under several badges, in what is called badge engineering. The Ford Laser and the Mazda 323 were essentially the same car, apart from the badge. You can find a full list of ‘badge engineered’ cars here http://en.wikipedia.org/wiki/List_of_badge_engineered_vehicles
Typically, badge engineering is used in different markets where the same car is sold, although due to the concentrated ownership of car companies, it is cheaper to use multiple badges on what is essentially the same car. To the consumer, it looks like they have a wider choice in the market, and they pay different brand premiums for the same car.
Why does it make sense?
There is only so far that car companies can push their sales. There is a brand image that often stands in the way of increasing market shares. You could never try to sell a BMW at a budget price, or a Hyundai for the price of a BMW, even if theoretically they were identical cars. You would do your brand image permanent damage if you tried that. So, if a large carmaker has invested billions of dollars in a car making facilities, and volumes were dropping, in order to recoup their fixed costs, it would be a good idea to fill up spare capacity with a differently branded car.
In fact, it would appear that some private labels are trusted by customers more than regular brands. I would not be surprised, if in Australia, Bob Jane, which has it’s own range of private label tyres ranked higher in trust than a number of international brands such as Dunlop or Goodrich. It would appear that by capitalising on this section of the market, a viable long term brand could be built.
For the manufacturer, it also means not having to spend much on marketing and advertising. It also gives them economies of scale in manufacture and distribution.
What are the pitfalls?
The private label market is not all rosy from a manufacturer’s perspective. Firstly, there are lower margins in private label products, cars included. Secondly, if it looks too similar to a current brand, it could devalue the manufacturer’s own brands. Thirdly, there is a very high risk of cannibalisation of the manufacturer’s own market share from sale of private label cars.
From a retailer’s perspective, the key issue is capital required. To set up a distribution, and potentially a service network independently could be quite expensive. Also, the retailer has to rely on the manufacturer for warranty and service related issues.
Who would be the most likely candidate to enter the market?
Enough said, who do I think has the best chance of creating a viable private label product in the auto industry? Obviously, a current player in the auto industry with a wide distribution network would be ideal. It could be a tyre chain like Goodyear or Michelin, or a service network like Ultratune or K Mart Tyre and Auto. Or it could be an after market retailer like Repco or Supercheap auto. Even an auto services player like NRMA or an insurance company like AAMI could jump into the fray.
All things considered, my money would be on K Mart Tyre & Auto to be the most successful in this space. They already have a large network of service outlets. They have deep pockets through Wesfarmers that owns them (along with Bunnings, Target and Coles). They have a brand name that is well recognised in the market and in the racing industry. In my view, all the planets are aligned for K Mart to get into the private label game.
Who would be the manufacturer? Now, that is more difficult. Most of the obvious choices, such as Toyota and Honda) would not want to be associated to prevent brand damage and cannibalisation. However, I believe an offshore manufacturer that is not yet strong in the country would be the best bet. I believe the market is right for Tata Motors to enter the market. Now that they own Land Rover and Jaguar, and also manufacture significant number of vehicles under the BMW and Mercedes badges, they would be ideally positioned to take advantage of this. They could very easily take a car from a different market and rebadge it for the Australian market.
To top it off, it provides them an entry into a market that they may one day want to get in on their own.
But anyway, that’s my view. And it’s all speculation. But I sure would like to see the day K Mart begins to sell Tata Indicas or Sumos under their brand name.
Wednesday, August 05, 2009
The Morons that run Paypal
If you thought government bureaucrats were the leaders when it came to nonsensical and inflexible rules and for moving the goalpost whenever you came within striking distance of one, do not despair. There is someone else who beats them hands down – the morons that run Paypal customer service.
How naïve of me to assume Paypal was a global company, and that I could operate my account from anywhere in the world. Never mind the fact that I can access my bank accounts, check my e-mail, pay my taxes, book a ticket, pay my kid’s school fees, all of these over the internet, and from a different country. The trolls at Paypal believe that if you were to ever travel to a different country and try to access your account from there, they have the right to freeze it.
Surely, they are trying to reduce fraud. So the trolls lock up my account, unilaterally reverse the transaction I had made, and even represent to the other party that it was at my request.
Here comes the good part – In order to unlock the account, the only documentation they will accept is a faxed copy of a utilities bill with my name and address on it. How in the world do they expect me to access a document safely sitting at home 10,000km away, then access a fax to send it to a UK fax number. Who uses a fax these days anyway? And if I walked into an internet café to fax sensitive information, can I even be sure of who gets a copy of my documents?
And then there is a question of who pays for all this. All I wanted to do was transfer a measly $7, and to do this I need to access a document 10,000km away to fax it to a place 20,000 km away. I think I would rather stick to cheques and bureaucrats.
And I shouldn’t bother complaining. Paypal’s parent – eBay – is even worse on customer service. I could write 10 whole blogs on my experiences with them. Maybe, I’ll do that tomorrow….
How naïve of me to assume Paypal was a global company, and that I could operate my account from anywhere in the world. Never mind the fact that I can access my bank accounts, check my e-mail, pay my taxes, book a ticket, pay my kid’s school fees, all of these over the internet, and from a different country. The trolls at Paypal believe that if you were to ever travel to a different country and try to access your account from there, they have the right to freeze it.
Surely, they are trying to reduce fraud. So the trolls lock up my account, unilaterally reverse the transaction I had made, and even represent to the other party that it was at my request.
Here comes the good part – In order to unlock the account, the only documentation they will accept is a faxed copy of a utilities bill with my name and address on it. How in the world do they expect me to access a document safely sitting at home 10,000km away, then access a fax to send it to a UK fax number. Who uses a fax these days anyway? And if I walked into an internet café to fax sensitive information, can I even be sure of who gets a copy of my documents?
And then there is a question of who pays for all this. All I wanted to do was transfer a measly $7, and to do this I need to access a document 10,000km away to fax it to a place 20,000 km away. I think I would rather stick to cheques and bureaucrats.
And I shouldn’t bother complaining. Paypal’s parent – eBay – is even worse on customer service. I could write 10 whole blogs on my experiences with them. Maybe, I’ll do that tomorrow….
Sunday, July 26, 2009
Ride & Wrong
Today, I tried something very adventurous. It got me all pumped up, set my adrenaline running, and left me feeling high. Did I, you may ask, go bungee jumping? No. Maybe it was something else like rock climbing or stomach rappelling. Wrong. It was something far more adventurous than that. Something that would put underwater caving or base jumping to shame. Hold your breath. I went… driving through Chennai.
Balderdash, I hear you say! I sense that tone of disbelief, disappointment and outrage in your thoughts, as if in a Bollywood movie you were watching, the bad guys were all killed by malaria rather than by a hail of bullets. Driving through Chennai is no big deal, you might think. Many of you do it everyday. But for me, as a NRI returning to my janmabhoomi after a hiatus of several years of driving overseas, it was a big deal. It boosted my confidence to realize that I had not lost my touch. That I could still blare a mean horn. That I could still duck and weave through a labyrinth of people and vehicles. And most importantly, that I could travel a full 20 kilometres and stay alive. Indeed, I am proud of what I have achieved.
And so, on this sultry afternoon, I have decided to sit down and pen my thoughts, so the uninitiated and future generations can truly understand the intricacies of the art that is driving in Chennai, to rival the masterpiece that is Zen and the art of Motorcycle Maintenance or even Das Kapital.
A dear friend of mine used to say “The first rule is that there are no rules”. Since he was run over by truck before he could give me the rest of the rules, I have suitable paraphrased it to “Everyone driving on the roads of Chennai is entitled to their own inalienable personalized set of rules”. After all, we live in the world’s largest democracy.
So, imagine you were at a traffic light at an intersection and wanted to turn right. If you were an obsessively organized person, you would move to the rightmost lane and turn on your indicator. However, in Chennai, this is not necessary. You have the power of choice. You can choose to turn right from any lane of your liking, even the left most one. All it needs is a bit of blaring the horn and pretending that you own the land on which the intersection is built. Using your indicator is optional. You might as well save the battery power to operate the horn or air conditioner rather than the indicator. Come on, if people around you cannot read your mind, it is their fault.
The most important rule you need to learn deals with right of way. As a general rule, smaller vehicles give way to larger vehicles. Cars give way to buses and trucks (or lorries, as they are called). Scooters and motor bikes give way to cars. Bicycles give way to any motorized vehicles. And the hapless pedestrian gives way to everyone else, including potholes on the road. There is one exception to this great pyramid of giving way. Cows do not give way to anyone. They are the supreme masters of the human race on Chennai roads. They have a ticket to move anywhere without fear of being run over – be it the median on the centre of the road, the dustbin on the side, or even at a bus stop. All traffic must slow down and weave around to accommodate the vagaries of the cow.
Once you have learnt the right ‘right of way’, the next lesson is a quick one in becoming an accomplished three dimensional terrain driver. If you enjoy driving over sand dunes or dirt trails, or participating in the Dakar rally in your spare time, you will master this in no time. It’s quite simple really. Just keep an eye on the terrain, so you can avoid potholes on the road. Some of them may look like large craters left when the Martians last invaded Earth, but do not worry, they are perfectly drivable. Keep another eye out for traffic on your left and right, and front and back. No doubt, when you reach your destination, you will have exercised your eyes so much they could give Arnold Schwarzenegger a run for his money for the Mr Universe title. Just be sure to give the cars around you 6 full inches of space to maneuver.
Chennai drivers have a lot of lane discipline. They ensure that all lanes are used up in an optimal manner. Even if this means that someone has to go driving down the wrong side of the road so that the lane is used up. The interpretation of a lane is that you can fit a minimum of one car in a lane. It is quite normal to fit 6 cars side by side into a 4 lane road, so there is not an inch of empty space left over. The cops know this, and they try to outsmart them by setting up so called road blocks that block off two of the best lanes on a 4 lane road. The hapless drivers then have to squeeze the six cars into the remaining two lanes. They manage this with dexterity from years of practice and by playing the game ‘Is my horn louder then yours?’
Parking is a breeze as well. If you are in a hurry, you can park anywhere – in driveways, under a flyover, parallel to another parked car or if on a motorbike, in the 12 inches of space between the bumpers of two parked cars. Too many choices! As long as your vehicle plays loud music while reversing into a spot, you should be fine. You are even allowed to make a three point turn at a busy intersection to ensure you don’t miss that elusive spot. Don’t worry about getting a parking ticket – at the speed at which most traffic moves, the cops are never sure if you are illegally parked or just stuck in traffic.
If everything fails, and you still cannot bring yourself to drive in Chennai, I have a surefire remedy. Just get the word ‘PRESS’ tattooed in big bold letters on your vehicle. It gives you the right to continuously sound the horn while driving at breakneck speeds, drive on any side of the road, and park anywhere you want. To complete the transformation add the words ‘SOUND HORN’ and ‘Ferrari’ to the back of the vehicle. Then people tailing you will know who they are up against and realize that resistance is futile.
In short, driving in Chennai is like meditation. It is chicken soup for the soul. It brings one a strange sense of calm, almost like you are about to enter the next world. How can you feel road rage when you aren’t even sure if you will get to your destination horizontally or vertically?
In the second part of this article, we will cover more advanced topics, such as how to avoid freshly broken coconuts and melon on roads, how to make your number plates unreadable by getting them written in Tamil, and most importantly, what expletives to use when you come across an elderly pedestrian who wants to cross the road at a zebra crossing. We also provide 101 legitimate excuses for when a cop pulls you over going down the wrong way in a one-way street. I will start working on that once I get out of this traffic jam in 2012.
Balderdash, I hear you say! I sense that tone of disbelief, disappointment and outrage in your thoughts, as if in a Bollywood movie you were watching, the bad guys were all killed by malaria rather than by a hail of bullets. Driving through Chennai is no big deal, you might think. Many of you do it everyday. But for me, as a NRI returning to my janmabhoomi after a hiatus of several years of driving overseas, it was a big deal. It boosted my confidence to realize that I had not lost my touch. That I could still blare a mean horn. That I could still duck and weave through a labyrinth of people and vehicles. And most importantly, that I could travel a full 20 kilometres and stay alive. Indeed, I am proud of what I have achieved.
And so, on this sultry afternoon, I have decided to sit down and pen my thoughts, so the uninitiated and future generations can truly understand the intricacies of the art that is driving in Chennai, to rival the masterpiece that is Zen and the art of Motorcycle Maintenance or even Das Kapital.
A dear friend of mine used to say “The first rule is that there are no rules”. Since he was run over by truck before he could give me the rest of the rules, I have suitable paraphrased it to “Everyone driving on the roads of Chennai is entitled to their own inalienable personalized set of rules”. After all, we live in the world’s largest democracy.
So, imagine you were at a traffic light at an intersection and wanted to turn right. If you were an obsessively organized person, you would move to the rightmost lane and turn on your indicator. However, in Chennai, this is not necessary. You have the power of choice. You can choose to turn right from any lane of your liking, even the left most one. All it needs is a bit of blaring the horn and pretending that you own the land on which the intersection is built. Using your indicator is optional. You might as well save the battery power to operate the horn or air conditioner rather than the indicator. Come on, if people around you cannot read your mind, it is their fault.
The most important rule you need to learn deals with right of way. As a general rule, smaller vehicles give way to larger vehicles. Cars give way to buses and trucks (or lorries, as they are called). Scooters and motor bikes give way to cars. Bicycles give way to any motorized vehicles. And the hapless pedestrian gives way to everyone else, including potholes on the road. There is one exception to this great pyramid of giving way. Cows do not give way to anyone. They are the supreme masters of the human race on Chennai roads. They have a ticket to move anywhere without fear of being run over – be it the median on the centre of the road, the dustbin on the side, or even at a bus stop. All traffic must slow down and weave around to accommodate the vagaries of the cow.
Once you have learnt the right ‘right of way’, the next lesson is a quick one in becoming an accomplished three dimensional terrain driver. If you enjoy driving over sand dunes or dirt trails, or participating in the Dakar rally in your spare time, you will master this in no time. It’s quite simple really. Just keep an eye on the terrain, so you can avoid potholes on the road. Some of them may look like large craters left when the Martians last invaded Earth, but do not worry, they are perfectly drivable. Keep another eye out for traffic on your left and right, and front and back. No doubt, when you reach your destination, you will have exercised your eyes so much they could give Arnold Schwarzenegger a run for his money for the Mr Universe title. Just be sure to give the cars around you 6 full inches of space to maneuver.
Chennai drivers have a lot of lane discipline. They ensure that all lanes are used up in an optimal manner. Even if this means that someone has to go driving down the wrong side of the road so that the lane is used up. The interpretation of a lane is that you can fit a minimum of one car in a lane. It is quite normal to fit 6 cars side by side into a 4 lane road, so there is not an inch of empty space left over. The cops know this, and they try to outsmart them by setting up so called road blocks that block off two of the best lanes on a 4 lane road. The hapless drivers then have to squeeze the six cars into the remaining two lanes. They manage this with dexterity from years of practice and by playing the game ‘Is my horn louder then yours?’
Parking is a breeze as well. If you are in a hurry, you can park anywhere – in driveways, under a flyover, parallel to another parked car or if on a motorbike, in the 12 inches of space between the bumpers of two parked cars. Too many choices! As long as your vehicle plays loud music while reversing into a spot, you should be fine. You are even allowed to make a three point turn at a busy intersection to ensure you don’t miss that elusive spot. Don’t worry about getting a parking ticket – at the speed at which most traffic moves, the cops are never sure if you are illegally parked or just stuck in traffic.
If everything fails, and you still cannot bring yourself to drive in Chennai, I have a surefire remedy. Just get the word ‘PRESS’ tattooed in big bold letters on your vehicle. It gives you the right to continuously sound the horn while driving at breakneck speeds, drive on any side of the road, and park anywhere you want. To complete the transformation add the words ‘SOUND HORN’ and ‘Ferrari’ to the back of the vehicle. Then people tailing you will know who they are up against and realize that resistance is futile.
In short, driving in Chennai is like meditation. It is chicken soup for the soul. It brings one a strange sense of calm, almost like you are about to enter the next world. How can you feel road rage when you aren’t even sure if you will get to your destination horizontally or vertically?
In the second part of this article, we will cover more advanced topics, such as how to avoid freshly broken coconuts and melon on roads, how to make your number plates unreadable by getting them written in Tamil, and most importantly, what expletives to use when you come across an elderly pedestrian who wants to cross the road at a zebra crossing. We also provide 101 legitimate excuses for when a cop pulls you over going down the wrong way in a one-way street. I will start working on that once I get out of this traffic jam in 2012.
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