Upload
sourabh-mishra
View
219
Download
0
Embed Size (px)
Citation preview
8/8/2019 India Learns the Dark Side of Free Markets - Global News - Advertising Age
http://slidepdf.com/reader/full/india-learns-the-dark-side-of-free-markets-global-news-advertising-age 1/3
More from Ad Age: Creativity Ad Age China Insights Jobs Ad Age On Campus Sign up for E-mail Newsletters
Sourabh Mishra
0 Comments
To submit comments you must be registered. Please Login or Register Now
Stay on top of the news, sign up for our free newsletters
E-mail License Print Comment RSS
India Learns the Dark Side of Free Markets
Honeymoon Is Over and Jet Airways' Non-Layoffs Are a Case in Point
Posted by Sourabh Mishra on 11.03.08 @ 11:44 AM
A couple of weeks back, India's leading private airline, Jet Airways, announced
the layoff of 1,900 employees in the face of growing concern with the
economic slowdown. All the usual suspects from the local political circus,
predictably, got into the protest mode. Naresh Chandra, chairman, JetAirways, had to quickly get into the act and rescind the layoff decision.
There are a couple of really interesting points to be observed in this ent ire
episode.
Jet Airways was (and even today is) one of the foremost poster boys of India's honeymoon with
market liberalization and private enterprise. There used to be the government-owned Indian
Airlines flying the domestic routes, but it was best-characterized by indifferent service and
tardiness when it came to timing and schedules. Then came the private airlines around the mid-
1990s and Indian consumers could not get enough of the much higher levels of service that
came with them. Jet Airways went on to become the leader of the domestic skies in consumer
perception and deservedly so. While we were more than happy to enjoy the much better service
that came with these "private" or non-government-owned companies, we apparently are not so
happy when these private enterprises follow the dictates of market forces and take tough and
unpalatable decisions like laying off employees during a slowdown.
Which brings me to the second point to be noted from this episode. Indian consumers, especially
those we call the consuming class or the middle class, have wholeheartedly embraced the
consumerist culture that comes with the free markets. They love the number of malls they have
today to shop at. They love the international brands in everything from televisions and television
channels to cars, electronics and fashion labels. And of course they love the smiling hostesses as
they board the private airliners. It makes them feel one with the "developed" world, which was
rather inaccessible for the majority of them even a decade and a half ago. But this supposed
acceptance of market liberalization is still one-sided. They have not yet fully understood and
reconciled to the flip side of a freer market -- that while the going is good it feels like a picnic, but
the picnic is not forever.
As we grow up as an economy, this, I suppose, is our equivalent of coming to terms with
knowing that there are no fairy tales in real life. During this phase of growing up, we perhapsneed to be more sensitive when dealing with our consumers. After all, being told that there is no
Santa can be traumatic if done either too early or too abruptly.
AD AGE INSIGHTS/CREATIVITY
Who were this year's big winners?
Creativity editors analyze what work broke
through and why
RELATED CONTENT
Search Advertising Age
November 14, 2010Login | Register Now
Advanced Search
Subscribe to Advertising Age today!
Like
British Airways Takes Off On VH1
JET BLUE MOVES CREATIVE DUTIES IN-HOUSE
New logo for British Airways
NBC DROPS COMPLAINT AGAINST FOX;NIKE MAY CONSOLIDATE MEDIAFUNCTIONS; QANTAS JOINS BRITISHAIRWAYS IN HUNT FOR AGENCY; JUDGELIGHTS UP CLASS-ACTION TOBACCO SUIT;MCI HANGS UP ON DEVON DIRECT, SEEKSNEW SHOP; BOSTON CHICKEN PLUCKS NEWNAME AND MENU; DISNEY TEAMS AGAINWITH BK, FOR `POCAHONTAS'; PLANETREEBOK ORBITING TOWARD UNIVERSALSTUDIOS; BIG 4 NET SPENDING MOVES UP7%; ACCLAIM FAST BREAKS WITH NBA JAMVIDEOGAME; EPSON ADDS UP LIST OFFINALISTS FOR $20M REVIEW; N. KOREATO ALLOW FIRST FOREIGN ADS IN 50YEARS; SYBASE TOUTS FIRST BIGCORPORATE CAMPAIGN; ROYAL MAILLOOKS TO DELIVER $16M ACCOUNT; SEARSTEAMS WITH NCAA FOR FINAL FOUR TIE-INS; ACCOUNT ACTION; MEDIA MOVES;COMINGS & GOINGS; FOR THE RECORD
More...
8/8/2019 India Learns the Dark Side of Free Markets - Global News - Advertising Age
http://slidepdf.com/reader/full/india-learns-the-dark-side-of-free-markets-global-news-advertising-age 2/3
Search Advertising Age
Username:
Password:
Comment:
Post Comment
Note: Comments submitted to AdAge.com are posted automatically and will include the user
name with which you registered. Ad Age reserves the right to delete comments that are
insulting or personal in nature. Comments may be used in the print edition at editorial
discretion. Comments are restricted to 500 words or less.
Share & Save (?)
RSS Feed
Save on Del.icio.us
Digg this
Bookmarks
Stay on top of the news and stay ahead of the game—sign up for e-mail newsletters now!
›› GLOBAL MARKETING AN D ADVERTISING NEWS
Advanced Search
Advertising Age: Your Online Source for Marketing and Media News
Ad Age's International Partners
Adlatina (South America and Spain)
Ad Age America Central y El Caribe
(Central America & Caribbean)
Branded (Russia)
Communicate (Middle East)
Dentsu Ho (Japan)
Exchange4media (India)
Globes (Israel)
Marketing (Canada)
Meio & Mensagem (Brazil)
Modern Advertising (China)
AD AGE WHITEPAPERS
World's Hottest Brands
Ad Age Insights Global Report on 30 Brands
Connecting With Consumers on a Worldwide,
Regional and Local Level.
MORE
DATACENTER
Top 100 Global Marketers: From No. 1P&G Co. to No. 100 Abbott
The Global 100 ranked by worldwide media
spending. Also, "The Dots:" Multinational
agency networks and their global client
assignments
AD AGE CHINA
Website and Newsletter
Find profiles of marketers who have found
success in China, spotlights on hot marketing
campaigns, plus all the latest news, consumer
insights and market trends in the growing
market.
MOST READ MOST E-MAILED
1. Wired's Boobs Cover, James Frey'sOnerous Terms and Facebook's Defense
2. The Long, Sad Story of Ask.com
3. How Apple Found Its Groove In SocialVideo
4. Aegis Reports 9.7% Revenue GrowthThrough September
5. Is Cindy McCain the Real Maverick in the
Type the two words:
8/8/2019 India Learns the Dark Side of Free Markets - Global News - Advertising Age
http://slidepdf.com/reader/full/india-learns-the-dark-side-of-free-markets-global-news-advertising-age 3/3
NEWS Latest Marketing and Advertising News Marketing and Advertising Agency News Best Ads From Creativity CMO Strategy
DataCenter Digital Marketing and Advertising News Global Marketing and Advertising News Hispanic Marketing Madison+Vine
MediaWorks - Media and Marketing News People & Players This Week's Issue Your Opinion
COLUMNS Rance Crain The Media Guy Bob Garfield Al Ries Guest Columnists
WHITE PAPERS 2010 Creativity's Awards Report Building Brands Online More...
RESOURCES TalentWorks Advertising Age Events Industry Events White Papers & Marketing Information 360 Multiplatform Media
SERVICES Subscriptions Media Kit Help Center List Rental (What is RSS?) Archive Get the issue digitally (Texterity)
More from Ad Age: Creativity Ad Age China Insights Jobs Ad Age On Campus Sign up for E-mail Newsletters
Family?
BRANDED CONTENT
Search and Display Advertising Leads aStrong First Half 2010
More
Making Sense of Video Impressions in theEra of Syndication
MORE
Copyright © 1992-2010 Crain Communications | Privacy Statement | Contact Us