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From The Editor In Chief
Diwali
is just days away, but as India looks forward to the festival of lights,
there is more than a shade of darkness lurking. The rate of inflation,
hovering at around 6 per cent a year, is the highest in more than a year-and
climbing. The RBI has pared growth estimates for 2000-2001 from 6-6.5
per cent a year to under 6. The rupee, which closed at Rs 46.28 to the
US dollar last week, has depreciated by about 6 per cent since April:
a plummet in exchange market terms, and still sliding. And international
credit rating agency Standard & Poor's has downgraded its outlook
on India's long-term foreign currency debt, citing the Government's "inability
to accelerate the pace of reforms".
 Mirroring
a souring of expectations, the traditional buying frenzy this Diwali has
been tempered by an unprecedented discounting frenzy. Developed economies
like the US have built-in obsolescence. They also have mass consumer bases
which frequently replace products with upgrades. But in India buying habits
are built on a tendency to stretch a purchase for years. Besides, consumerism
is still largely the preserve of the upper end of the middle class-a sign
that reforms haven't touched a vast number of the masses-and manufacturers
and marketers are desperately wooing this segment with seconds: a second
TV set, a second car. With liberalisation inviting an explosion of choice,
companies, in order to keep sales moving, are doing everything they can
to lure consumers.
Of course,
what is bad news for firms is good news for buyers as they are wooed with
never-before deals on electronic gadgets, jewellery and clothes. Our cover
story this week looks into what's on offer, and the stories behind them.
As it turns out, it will make life difficult for companies as they deal
with higher expectation from savvier-by-the-day buyers. "Companies
must recognise they are dealing with an informed market," says Associate
Editor V. Shankar Aiyar, who put the story together. "The only way
to woo the consumer is with more value, not less." Happy buying.
And Happy Diwali.
(Aroon
Purie)
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