The Indian consumer enjoys more choices than ever before. Oodles of products, countless brand names, mean a plethora of choices, and yet over the last decade the rise of the dominant players is diminishing choice. Sectors not ‘dominated’ by monopolies are dominated by the duopolies i.e., two organisations own significant market share and dictate customer behaviour (think switched off ACs, cancelled rides, surge pricing, festival prices, long wait times). Many sectors are turning into two-horse races.
The choice between different consumer products is often a mirage. The choice between different retailers is equally illusionary. The pattern of diminishing choice and rising concentration reflects a profound change. Its mirroring the decades preceding the economic reforms. The top 20 companies take away over 75 per cent of corporate profit. It was only 40 per cent when the reforms were ushered in.
There is increasing evidence of the dominant players colluding both on prices and features. Monopolies have strong pricing power and a broader moat, making competition difficult. They fortify the moat by adding distinctive ‘stickiness’ features, bundling products etc. Monopolies have more, and cheaper access to capital. They use this effectively to consolidate, bankrupt competitions or acquire them eventually, improving cost synergies; and garnering market share. They price down the competitions, capture both the shelf and mind space (using data effectively, advertising efficiently), even shut others out by luring away customers and dangling freebies.
Ability & Intent to Raise Prices, Squash Competition
This story is from the February 25, 2023 edition of Business World India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 25, 2023 edition of Business World India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
The Astrology Cryptocurrency Of In New Financial Year
Whether you're a seasoned investment enthusiast or just starting out on your financial journey, Vedic astrology can be beneficial, especially in markets as volatile as the crypto sphere
KRISHNA CONSCIOUSNESS
The reader can almost feel that the mortal journey of Krishna has ended, yet Krishna Consciousness has manifested again as Keshav. Krishna-the Seventh Sense reveals the continuity of existence, notwithstanding the limitation of the one who exists. This book is a treasure
Recreating The Maruti Moment In EVs
SAJJAN JINDAL on the joint venture with MG Motor, electric mobility, charging infrastructure and more
Sustainable Models of Support for Women Entrepreneurs in India
Personal one-on-one mentorship is a key intervention that is most required amongst MSMEs and young startup founders today
ELEVATED ROAD TO SUCCESS
Honda Cars India is exporting 'Made in India' cars back to Japan showcasing India as a strong manufacturing hub for Honda sedans and SUVs. What is its game plan?
HOW HINDUJA GROUP'S BID TO ACQUIRE RELIANCE CAPITAL VIOLATES INDIA'S FDI, INSURANCE NORMS
The bid structure has come into question with the insurance regulator pointing out that it not just allows Hinduja Group-backed foreign entities to own 100 per cent in Reliance Capital’s insurance business but also lets them bid on borrowed money in total disregard of Indian laws and norms
Taking Astrology To The Masses
Driven by profound fascination and belief in the cosmic intricacies, Rajeev Bhandari, Founder, AstroSagga is on a mission to offer affordable courses to fuel employment in astrology sector
"My Mission Is To Make Temples Across India Better"
Sharad Kamath, Founder and CEO, 3ioNetra identified the need fora comprehensive software solution to address the complex billing and accounting needs of temples based on his experiences as avolunteer and organiser at religious functions
A Conduit Between Spiritual and Tech Realms
In November 2023, Vama secured a Seed Plus round led by Wavemaker Partners, bringing its total funding to USS 2.8 million
"AI Will Catalyse Hockey Stick Growth Of Astro Sector In India"
The current faithtech landscape in India leans heavily towards entertainment, says Punit Pandey, Founder, AstroSage and believes the key lies in shifting the revenue model from entertainment to trust