Thursday, March 20, 2008

Mobile Business

As of Sep 2007, there are 210mn mobile subscribers in India and is expected to go up by 300mn by 2008, which translates to 25-30% mobile penetration - pretty impressive for a once-termed "poor country". From a school student (Knowledge Management, Strategic Planning for homework) to auto-walas (Customer Relationship Management) to street-shop-vendors (Supply Chain Management), mobile is a big boon - It has fundamentally changed the way certain people do business!

Wait.. the post is not about mobile phones, rather about interesting "mobile business" in the world's largest Railways network - Yes, within moving, day trains of Indian Railways. Yeah, they offer various categories of products: (a) Eatables (Major chunk!) - full-time food, beverages, snacks, fruits; (b) Entertainment / play items targeting children; (c) Personal care - Flowers (yes, women in south India like to get down from train fresh with flowers), (d) Fancy products like bangles, ear-rings, key chains etc; (e)Education / Recreation - Books, newspaper, magazines; (f) Textiles.

Apart from food, all the other categories are sold by hawkers. Selling process is heavily dependent on the impulsive buying behavior. Here is a sample: books by small local publishers (printed in cheap paper, priced Rs. 10-20, with attractive titles for a typical middle class) and pirated DVDs - the selling process is quite interesting - Seller brings a bundle of products & hand it over to you saying you don't need to buy but can just flip through them. Three problems with these businesses: (1) Unlawful, since no permission from Railways (2) Disturbance to travelers (3) some are sub-quality products. The other side of story is different: it's rice & rasam for poor fellows doing these businesses; good & useful time-pass for travelers (esp. for the Indian middle class which doesn't spend much time on shopping! - But metro women are fast catching up with people abroad!!). So, rather than banning them altogether, Railways can promote them after carefully eliminating the problems.

So, here are few suggestions:

Simple:
  • IRCTC has done a wonderful job w.r.t. food - they can extend it to other categories
  • Strict rules to prohibit the sale of unlawful products like pirated DVDs, books etc
  • Provide movable trolleys for the sellers
  • Have big TVs similar to buses
  • License to sellers of different product categories
  • Sell those frequently used in trains - locks, chain, tooth brush, playing cards etc
Ambitious:
  • Dedicate a coach or a part of it as "Mobile Shopping" - Have mini-shops as in exhibition - People can walk in for shopping during travel
  • "Movie Theater Coach" - Designate and design a coach as theater running multiple shows per day - People can get tickets for the latest movie shown in the mobile theater
  • Short education / training / seminar sessions - e.g. cooking, oil painting, basic computer, spoken english, personality development, yoga, meditation, dance, table etiquette, vedic mathematics, abacus
  • Mobile Restaurant
  • Aquarium, museum, gaming zones etc
  • Library / Reading room / Book shop
  • Recreation hall with chess and other board games
  • Spa / Massage, beauty parlor
Yeah, all these sound exciting, but economic viability & customer interest are questionable and hence needs a more thorough analysis. Even more pertinent question to ask is "will Railways be able to implement and maintain them well?" [We all know of one service which is maintained very badly in every coach! ;)]

All these are fine and might get implemented in future, but one should never miss the beauty of country side and the fun of watching innumerable interesting things sitting in a moving train! :)


PS: Shall explore business opportunities in stations/platforms in a different post!

1 comment:

Kavity said...

enna da.. u r already riting consult level posts and all.. u can prolly take rest for a few weeks now.. u wil anyway start doing all this stuff soon enough :P