The internet, as we knew it, was proclaimed to be the savior of the middle-class (might be stretching it a little but what the hell…it’s the beginning of a new year :) ). The end of the middlemen who knew the mysterious pathways to fount of youth (or whatever little piece of paper you wanted). It’s amazing how shortsighted we get when we are optimistic. If anything, the internet has increased the number of middlemen in our lives, which in this case has a markedly positive impact on consumers and general public – seems to go against economic sense but this is the twisted truth. A couple of examples here might prove my point:
Is an online prepaid mobile recharging platform that allows you to recharge you mobile and get free coupons for the same amount from various food/entertainment joints like Dominoes, PVR cinemas etc. As a consumer it’s a Win-Win as you spend almost nothing (Rs 10 delivery charges) and get talk time & free coupons. The best part is – IT WORKS! 2. Snapdeals (URL - http://www.snapdeal.com/deals-bangalore_koramangala_plus)
The Indian version of Groupon (my first impression of what I have seen) that provides you with special offers/deals in your city/geographic area that you are living in. from where I stand, this again is a win-win for me as I get to know more about what sells and what doesn’t in my locality, which is very useful info for a consumer marketing professional (somewhere down the line, FMCG’s and retailers will surely tap this!).
Two businesses that act as the middleman, the new ‘Maharaj’, who help you get what you want, when you want it and where ever you want it. The increasing number of businesses that provide incremental value by offering price comparisons and discounts (also think makemytrip, cleartrip etc) makes me wonder if, as consumers, we are playing into the hands of the big bad wolf – organized business.
The biggest maharaj, who to a certain extant is still in the making, is yet to hit us. And when he does, it’s going to be big, or that’s what the punters say. Facebook! Think of all those personal messages, think of all those wall posts and private info that you share. Birthdays, weddings, anniversaries and everything else under the sun, including professional info. All that info is sweet music to a marketing professional. All that data will put a smile – a real big smile on the jokers face and he will be laughing away to the bank.
So what’s my point? What am I trying to say? It’s simple – while at one end you are getting things almost for free, be sure that somewhere on the other side there is a number cruncher who is busy sticking labels to your profile and figuring out how to make you think you are the Maharaja and the deal you are getting is a King’s ransom!
What goes around always, ALWAYS comes around.
Happy New Year!
1 comment:
Im not sure from where or how the argument that middlemen will be eliminated form the eco-system as a result of the internet came about.
What internet does is make lowers the cost of providing information, makes is accessible, lowers transaction costs and makes the system efficient overall. Economic agents (dealers and likewise) can no longer charge the consumers for merely providing information or even a service or rather it systematically improves the system by eliminating the possibility of economic agents to make profits as a direct result of these inefficiencies. The earlier phenomenon can be considered equivalent to hoarding in the classic sense. With each iteration its going beyond and looking at creating value in a more accurate sense. The internet is systematically going about eliminating economic rents (the above normal levels of returns associated with a lack of competition in markets) garnered by few economic actors.
With such a perspective, it does make absolute economic sense too; and is absolutely in sync with the classical economic theory even.
Post a Comment