Parallel Channel Marketing - Boon or Bane

Some companies have released online only brands.

Why?
It prevents cannibalization, of offline by the online

Accrued advantage of getting those customer who are

1. Aspirational
2. Confident about their brand

These are the 2 characteristics of customer of online channel

DDT - A curse for service export sector

IBM has been served notice by Tax authorities against valuation of imports. Recently, Accenture was scrambling to reduce its capital base. It was stuck as reducing capital base will increase the D/E or leverage for which permission of lenders will be required.

Why?
Lesser Capital Base or Equity will lead to lesser dividends and therefore lesser DDT

Broader Issues

1. Inter Company transfers
2. Payment of Royalty to Parent companies outside India
3. DDT
4. Valuation of Service in Import Invoices

This will lead to a situation where these global outsourcing companies will view India as unattractive and may shift their base to low cost locations.

Its high time that DDT should be done away with for hi-tech sectors such as IT and research. Any fall in revenue due to DDT can be countered by the relevant multiplier effect in economy and revenue collection thereof, in addition to accrued benefits related to entrepreneurship and innovation. Success of Indian companies in Pharma and IT are proof of this. 

Role of CMA, E&Y and Mckinsey in Kochargate

Management Consulting is booming in India. Though the companies boast of their success stories, very little has been written about the failures. Hindustan Motors was the starting point of Management Consulting and was an utter failure.

Quite recently in Kochargate, media is yet to explore role of Mckinsey and CMA in last 1 decade of mismanagement at ICICI. Its naive to say Mckinsey was not involved, at all

Should she meet the same fate as Rajat Gupta of Mckinsey

Also, E&Y (Ernst and Young) was all along the culprits during all those years.

This is second time for E&Y, first was Satyam

I salute to Arvind Gupta for all this valuable service to the nation, right from 1992.


Mckinsey was all involved during this period

https://economictimes.indiatimes.com/industry/banking/finance/banking/icici-bank-sets-up-top-team-to-track-loans-sound-npa-alert/articleshow/53460243.cms

Hope to see some revelations sooner or later