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In India, Cellular Companies Gain Over Grocers

In India, Cellular Companies Gain Over Grocers

Affordable smartphones in India, and the growing consumption of mobile data is decreasing the growth prospects of consumer goods companies, reports the Wall Street Journal.  Consumer product companies are now changing their marketing strategies to deal with this new phenomenon.

Small-time grocers now “recharge” prepaid mobile phone plans for any amount a customer is willing to buy. Unilever, the consumer products giant, offers a free mobile radio station that lets callers dial in to hear popular Bollywood tracks.  Advertisements of the company’s products such as Lux soap and Brooke Bond tea, are aired during breaks between songs. Another innovative service that Unilever has introduced is a mobile program that users can sign into which delivers free tips on topics including how to speak better English and dressing for an interview.

Mobile Phone

Smartphones are “now the new direction in which consumers are moving,” Hindustan Unilever Chief Executive Sanjiv Mehta told shareholders last month. “The opportunity for us is to ensure that we are winning in this world, this new connected world.”

 

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