3
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 mu st 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 Je t 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 th e economic slowdown. All the usual suspects from the local political circus, predictably, got into the protest mode. Naresh Chandra, chairman, Jet Airways, 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 u sed to be th e government-owned Indian Airlines flying the domestic rout es, but it was best-characterized by indifferent service and tardiness when it came t o timing and schedules. Then came the private airlines around the mid- 199 0s and Indian consumers could not get enough of the much higher levels of service that came with th em. Jet Airways went on to become the leader of the domestic skies in consumer perception and deservedly so. While we were more t han h appy to enjoy t he mu ch better service that came with these "private" or non-government-owned companies, we apparently are not so happy when th ese 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 th e consuming class or th e middle class, have wh oleheartedly embraced the consumerist culture th at 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 th e "developed" world, which was rather inaccessible for the majority of them even a decade and a half ago. But this su pposed 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 w ith knowing that there are n o fairy tales in real life. During this phase of growing up, we perhaps need to be more sensitive when dealing with ou r 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, 2010 Login | 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 MEDIA FUNCTIONS; QANTAS JOINS BRITISH AIRWAYS IN HUNT FOR AGENCY; JUDGE LIGHTS UP CLASS-ACTION TOBACCO SUIT; MCI HANGS UP ON DEVON DIRECT, SEEKS NEW SHOP; BOSTON CHICKEN PLUCKS NEW NAME AND MENU; DISNEY TEAMS AGAIN WITH BK, FOR `POCAHONTAS'; PLANET REEBOK ORBITING TOWARD UNIVERSAL STUDIOS; BIG 4 NET SPENDING MOVES UP 7%; ACCLAIM FAST BREAKS WITH NBA JAM VIDEOGAME; EPSON ADDS UP LIST OF FINALISTS FOR $20M REVIEW; N. KOREA TO ALLOW FIRST FOREIGN ADS IN 50 YEARS; SYBASE TOUTS FIRST BIG CORPORATE CAMPAIGN; ROYAL MAIL LOOKS TO DELIVER $16M ACCOUNT; SEARS TEAMS WITH NCAA FOR FINAL FOUR TIE- INS; ACCOUNT ACTION; MEDIA MOVES; COMINGS & GOINGS; FOR THE RECORD More...

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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

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November 14, 2010Login | Register Now 

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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...

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