Strategy

Growth strategy of any business organization should keep following points in special consideration; budget for customer acquisition, cost per customer acquisition, merchandize value per customer, margin per customer, natural churn (a segment of fleeting customer who will never be yours. They keep experimenting and pricing is their key nudge to buy any product or services) and cost of customer retention. If the cost of successive customer acquisition is lower than retention of a loyal customer, then going all out aggressively for customer acquisition makes more sense ignoring the complaints of existing customers for sometime than staying conservative to build the business. By doing so, you will still have more customer despite natural churn and exit of few disgruntled customers than your conservative growth strategy.

If you remain focused on providing value to each and every customer (Though this should be your ultimate goal) before moving ahead, then you will be stuck at very small scale; low sales and low margin making your interest in the business dwindle. If you leave your target customer unattended, then someone else will come and make them their customer. It will make customer acquisition more difficult.

If your customer’s gross merchandise value is very high and they are very sensitive towards being served with full attention, then aggressive growth strategy will kill your business. For obvious reason, a customer spending big amount of money on buying a segment of merchandize on the regular basis will be high net worth Individual with the circle of similar customer base. If you lose attention on any of them, then you will lose business of many of them.

It is very easy to present yourself as a consultant but very difficult to sell yourself as a consultant. Every individual has a thinking brain which acts according to situation, time, resources, past experiences, educational qualifications, biases and heuristics. Those actions may or may not yield planned positive outcome all the time.

Whenever the outcome is not as planned, then thinking brains sit down to find the answer, which they call brainstorming. And when they fail to find the answer and demand of the expertise is for long period of time, they opt for a new employee, but when the demand is for the short term, then they opt for the services of a consultant. As mentioned in the first line itself, presenting yourself as consultant is very easy but selling yourself as consultant is very difficult. I have broken down the answer of this challenge in five parts:

-If organization perceives the problem as complex, so make it complex for them: If you make the problem easy to understand, then why would someone hire you. Let the problem remain complex for them either resources wise, time wise or knowledge wise.

-Don’t go for discovery journey: C-Suite people don’t enjoy being questioned. They assume that person coming to him/her has already done the research and ready with the answer. This may seem against the established sales norm, which demands us to know the customer’s need, but these customers don’t fit into that category and more so when it is about their business.

-Only you are the right person: Consultancy proposals are sold to C Suite people who are already well informed but have paucity of time to address the challenge. So, discussing numbers with them won’t cut the haze. Present your credentials, talk about the insights and offer the solution.

-C –Suite professionals have complex ‘Status Quo Bias’ – While a C-suite professionals hate status quo bias among his employees, but they like to maintain status quo for themselves. So, it is very important to know as maximum as possible about the person you are going to meet.

-Use loss aversion bias in your favor- Though everyone hates to lose money, but in an organization, a lower level employee will be more bothered about doing his/her part of job than its financial implications. Only C-suite professionals hold control over financial matters and they need to be convinced that any delay in applying the solution will cost the business dearly.

I am writing this blog drawing inspiration from one book and few incidents of my life. Around a decade back I bought a path breaking book “New Age of Innovation: Driving Co-created Value through global network” written by eminent Management Experts Late C. K. Prahalad and M. S. Krishnan. This book was published in year 2008 and for me then it was another book from the world renowned experts which I must have in my shelf. Until last year, the theory of “N=1 and R=G” was another management jargon for me to make me look like updated management professional in the meetings. But before proceeding further, this piece does not represent the exact management philosophy conceptualized and propagated by both the experts. I am using it to only drive across my point.

I don’t remember but sometime in April or May last year, I bought a 500 ml copper water bottle to carry during morning jogging schedules from one of the two leading online retailers of the country. Next time when I visited the site after making the purchase, I saw a notification with the communication, “people who bought ___, also bought ___”. First space was carrying the image of water bottle I had purchased and second space was carrying the image of three water bottles made of copper in different designs. Now, if at all they apply simply their head and not the much talked about analytics probably based AI, I wouldn’t have been recommended what they had recommended me. My purchase history with them was mostly books, few clothing for myself and dry fruits. Seeing that, anyone can make an assumption about me being a bachelor with very limited needs. And let me tell you, this is not just an isolated case.  

There is another experience which is around twelve years old and I assume things might have changed now. There were couple of grocery stores in Gultekdi Market Yard, Pune, which used to do more business than any of the store of modern retail. I am sure they must be doing more business than what they were doing then. If you had visited the store, you would have found a format mentioning all the items in their store, along with column for quantity, price and total price. There was also a board hanging outside the store indicating the current price of items whose prices were volatile. Now what you were supposed to fill the details of quantity against each item, handover that sheet to a staff in the store and sit on the chair lying outside. Store staff packs your merchandize, raise the bill and call your name to pay the bill. Since our store was nearby and these stores were competition, I used to benchmark these stores regularly. 

Around five-six years ago, I was talking to one gentleman who was heading sales and business operation of a retail company engaged in selling premium furniture in Delhi. He told me that he doesn’t ask his sales team member about his/her sales numbers for first six-seven months of joining. Instead, he sends them to foreign tours to understand the taste of rich and famous, because his clients are rich and they demand exclusivity. For his clients, money comes last in order of concern; they first look for exclusivity of design and material. Moreover, these clients can’t be found buying their toothpaste in the nearby grocery store and they don’t allow everyone to get into their circle. So, for him and his team to sell furniture to these set of clientele, it is very important to understand their need and get into their proximity. 

Having been connected to retail industry for so long through either work experience or colleagues working at different senior positions in different retail organizations, I never had experience of either asking my customers about their monthly basket and their other shopping needs as above stores I mentioned or being myself asked by any retailer. We let incoming data to do the talking. Asking about the family profile of the customer seems out of bounds for any retail organization. They again depend upon the incoming data to do the talking. 

It is important to note that “Data leads but incomplete data misleads” and that’s why a multinational retail company with billions of dollar suggests a consumer with no dependent family member to buy four copper water bottles of 500 ml each. That’s why all these sound around AI based retail analytics will be helpful only when incoming data is complete. Why retailers don’t ask about the monthly basket and family profile of their customers may best be known to them. I assume they may be finding these questions as intrusive or another tedious task supposedly not core to the business, but asking AADHAR details for Payment banks are more intrusive.

Now let me bring back the reference of “N=1 and R=G”. Central thesis of the book is exhorting companies to customize their products for each customer by gaining access to assemblage of suppliers. “N=1” requires companies to focus on the importance of individual customer experience and tailor their product accordingly. It requires companies to be resilient, dynamic and flexible in their business processes and approach to reach the level of customer delight. They also advise companies to be very strong at analytics to allow management to discover opportunities and unique trends and enable companies in product co-creation. 

Though theory focuses on one experience or one problem at a time, but I am talking about the all the challenges of one customer at one place. Deployment of this idea will definitely have area and location challenge and scaling up will again lead to automation, standardization and templatization of solution reducing the human connect, but if this idea is deployed in smaller geographical area, it will bring in immense result. 

“R=G” requires companies to take horizontal approach to supply rather than vertical integration. The focus should on obtaining the access, rather than ownership, to the resource from assemblage of suppliers from outside as well as inside of the company. 

In today’s time, probably a marketer has every tool to connect and engage with the customers. If anything is missing, that can also be developed without much hiccup.

If you look at all the marketplace companies like Ola, Uber, airbnb, Amazon, Flipkart etc., you will find the examples of idea pioneered by great management thinkers. While Ola, Uber, airbnb are solving one challenge of a customer while Amazon and Flipkart are trying to solve many. Just look at the business opportunity and look at valuations; they are humongous.  

But in order to scale up at exponential speed and capture the global market, their customer engagement and delight exercise seems limited to quiz contests on app or sending promotional emails. Though primary challenge gets resolved but even entire exercise doesn’t push the market imperfections surrounding primary challenge much away from where they were. That’s why, one can find consumers having multiple apps for same services in their smart phones and browsing for best price and availability. Price and availability becomes front face of conversation between retailer and consumer. Service providers are deliberately anchoring their customers in this direction, knowingly deviating from the fact that customers buy a service or a product to solve their problem in hand and not to get the discount; discount is extra advantage. If someone is booking hotel room using either OYO or Goibibo or Makemytrip, he or she is booking the hotel room; that is the primary challenge. First priority of the customer goes to place to stay and relax, next priority goes to safety and cleanliness, third to food and of course if all of it comes at a good price, then it is considered the best deal. That’s why customers look for fellow customer’s rating of facilities, images of hotel and facilities etc. before booking the room. But in many, service providers jump directly to pricing. While writing this blog, I opened the website of a prominent travel and ticketing portal. I selected the location, but didn’t do any other activity for couple of minutes. Immediately a page dropped down anchoring me to take the bite of 25%-50% discount or straightaway Rs.1350/- discount at certain level of booking amount. Further, if you look at the event of recent acrimony between Zomato and Restaurant Association of India, the bone of contention was deep discounts offered by Zomato to its customers for Gold membership. If a food aggregator like Zomato in India thinks of discount as the first and foremost incentive to its premium customers, then nothing remains premium and exclusive in that offer. This is the not just the case with Zomato; almost all the service providers have reduced their customer engagement and delight activity limited to offers, extra money and savings. It leads market imperfections to remain not far away from where they were before these companies started their services.  

With this attitude, companies will keep burning money. Someone with better connect with deep pocketed investors will stay afloat for bit longer, but they will also have to make money and for that they will have to anchor their customers not towards discount they offering but how they are helping them in solving their primary challenge. According to Hubspot, leading inbound marketing and ERP company of the world, chances of converting a satisfied customer for a new purchase is 58% against 20% chance of acquiring a new customer for a new purchase. It makes all the sense to look beyond loyalty points getting converted in extra monetary benefits. 

It gives the rise to the idea of Consumer Engagement, Acquisition and Delight organizations or a department separate from traditional sales and marketing, because both the departments often suffer from traditional definition mindset. While one keeps trying to increase the adrenaline rush in its team members, other remains busy in writing slogans and jargons. More appropriate will be to bring sales and marketing under a separate CEAD department to bring synergy.  

A separate organization can also be very apt option in this entire gamut of sales and marketing, because then companies involved in buying and selling or creating marketplace can remain engaged in their core business. The challenge of data ownership and security can’t rule out the necessity of this set up. Challenge of data ownership and security will be of utmost importance without negating the importance of customer engagement and delight. This will require very strong analytics and lead to best Artificial Intelligence driven results. 

Customers need attention and solution of their problems and companies need reduction in the customer acquisition and retention cost, increase in revenue and margin, which only this vertical can guarantee.

Politics can’t be without economics but economics can be without politics; if we choose to practice so. Political economics focus solely on getting elected and re-elected by the political parties. Though economics is the second word of political economics but when it comes to objective, economics becomes third or distant last in the priority list.

Fidel Castro, famous ruler of Cuba (Prime Minister from 1959 to 1976 and President from 1976 to 2008) and noted communist famously said, “I became a communist by studying capitalist political economy, and when I had understanding of that problem, it actually seemed to me so absurd, so irrational, so inhuman, that I simply began to elaborate on my own formulas for production and distribution”.

What he did not tell all of us that every individual action depends on psychological functions which further depends on numerous biases and heuristics created by demographical, social-economical, educational etc. nudges and interventions applied by different forces every moment, which further fires many chemicals known neurotransmitters laying down new memories, creating new biases and heuristics or strengthening the earlier one. Hasn’t this become a heady cocktail of jargons and words, very difficult to understand? That’s what political economics is; very difficult to understand.

India as a country is as diverse as the word ‘diverse’itself can be and it is as multidimensional as‘multidimensional’the word can be. Indian economy is complete reflection of the country, giving scope to every party to claim what they want to claim and most of the time each one of them may be completely true or true to some extent or completely wrong.Since economy is what matters to everyone the most, it becomes imperative to make this cocktail light, if not nectar, for everyone to consume, I talked to Mr. Suraj Sharma, who is an authority in this field.

Mr. Suraj Sharma is Chevening Financial Services Fellow, hosted by Kings College, London and IIM-Kolkata alumni. He also holds PGDM from Centre of Management Education, VAMNICOM, Pune. Presently, he is Chief Executive Officer of Punarvasu Financial Services Pvt. Ltd and also one of its board members. I had couple of straight questions to him and he cleared the haze overstate of Indian economy. Here we go with our discussion…..

Mukul Bhartiya: What is your opinion on current economic situation of the country? Would you call it “slowdown” or “crisis” and what are the factors which led to it?

Suraj Sharma: Current economic situation has the symptoms of “slowdown”, which if ignored, can develop into “crisis”.

Now, issues constituting second part of your question are crucial, poignant and present a paradoxical picture at the same time; issues which impacted or is impacting the economy needs to be divided into two parts; short term and long term. Short term issues are the policy decisions and long term issues are collateral effect of some other major domestic and transnational events.

You will agree with me that Indian economy, despite demonetization in 2016 is still largely a cash economy.Since ages, few individual who knew or probably still know how to leverage their connections with higher echelons of decision making bodies pockets the benefits meant for all. Incumbent government took certain policy decisions to streamline and make business activity transparent. Some of the decisions can be debated for its necessity or effectiveness, but rather than getting into details of the decisions, let’s understand what happened after that. It will help us to speed up our discussion.

Let’s begin with short term issues.

On 8th November 2016, Government of India took a humongous decision of calling back all currency of Rs.500 and Rs.1000 from the market. Whether objectives set by the government were met or not can be debated separately, but it led to massive cash crunch for SME and MSME sector which we agree or not, but were largely running on cash economy. This impacted the overall economy because money from the market were getting sucked in, demand of everything except necessary food items slowed down and job were cut on massive scale.

Before economy could recover from the impact of demonetisation, Goods and Service Tax became operational from 1st July 2017. GST Act is an excellent step by government of India to boost the ease of doing business in the country and bring in more transparency in the Indirect Tax regime. It was needed not only to remove friction in business operational activity but bring more and more business transactions under tax net.

But shift from one policy structure to another of such a humongous nature needs at least few business years to settle down and is implemented when economy is growing, not when it has slowed down. Here, government introduced not one or two but three policy changes of big impact in quick succession.

During this period itself, on 10th March 2016, Upper House of the government passed Real Estate Regulation and Development Act (RERA), which became effective from 1st May 2016. By this time, out of 92 sections, 56 were notified. By 1st May 2017, all the sections were operational. Real estate sector before bringing this act was unorganized, which was not only leading to exploitation of home buyers but restricting investment in this sector preventing credible and rated developers from sourcing money from the market.

Unregulated market was allowing many developers to manipulate the home buyers by channelling fund from one project to another without completing the earlier one, working on multiple projects without availability of required fund and many things more. Since there were many such developers and many such projects, this sector proved to be one of the leading employment providers, which it actually is, along with textile industry and after agriculture sector.

After implementation of RERA Act, many real estate projects were shelved and many developers defaulted.

Demonetization had maximum impact on SME, MSME and real estate sector the most because it dealt in cash the most. Implementation of GST forced them to put their business in a structure to be system compliant. Again I would say that it was good step but it delayed the sales activity. Since this sector makes a huge contribution towards employment generation as well, not only it had clear slowdown impact on economy but growth in unemployment as well.

All these policy decisions have not only stretched the business environment straight in the country but has also brought banking sector under lot of stress, which anyways is under lot of stress due to NPAs and toxic assets under control of banking sector.

That’s why I told you in the beginning itself that issues which led to slowdown are crucial, poignant and paradoxical at the same time. While decisions taken by Government of India are on solid merit points but Indian economy has never been in such a shape to absorb body shot shocks in such a quick succession.Though these decisions were right but the timings were questionable.

If we expand this discussion a bit more and go ten-eleven years back, then we see that world economy suffered a body blow due to US sub-prime crisis. Though it did not impact the Indian economy much but how can it remain unharmed because it is not insulated from the world economy. Efforts were made to boost the purchasing power and economy was on revival path, but many scandals tumbling out of government’s closet led to massive anti-corruption movement in the country. This movement brought in a kind of policy paralysis, where decision makers became afraid of taking decisions.

Mukul Bhartiya: Here I would like add something; there are many estimates of total business and employment losses due to US sub-prime crisis. I have read somewhere that business losses stood around USD 15 Trillion and employment losses around 80 Million. Further, in my opinion, Supreme Court gave the body blow to whatever was left after the impact of this financial crisis and policy paralysis, by cancelling 122 licenses of 2G telecom spectrum in February 2013. Foreign investors had shown their faith in Indian economy and telecom scam was the internal matter of the country. Without providing adequate relief to the investors or even thinking about them, Supreme Court gave harshest blow to the economy.

Suraj Sharma: There is no denying fact that impact of US sub-prime crisis was huge, but I would refrain from giving specific numbers in the want of accuracy or lack of it. What you said about the impact of Supreme Court’s decision on cancellation of license of 2G telecom spectrum and coal license cancellation may be right.

Though India was not influenced much by US financial crisis, but credit easing did happen here as well during that period. Most of the power, infrastructure, steel and other big projects were financed during that period itself. And because most of these decisions got entangled in court cases, projects either failed to start or got delayed putting humongous stress on the banking sector. Most of NPAs of Rs.14 Lakh Crore which is being talked about were financed during this period only. On top of it, this IL&FS crisis has adversely affected the business sentiment. In 2018, 40% of the incremental consumer financing was done by NBFCs and not the banks. Since mutual funds used to buy NBFC papers and give them money. A good share of NBFC money was coming from mutual funds, but IL&FS scandal turned the applecart upside down.

Look, every other business sector’s health depends on the health of financial sector. Though NPA problem has been resolved to certain extent but challenges are still there, NBFC crisis arising out of IL&FS scandal, freeze on payments to the account holders due to scam in PMC Cooperative bank, low capital ratios at Yes Bank and how it went unnoticed for so long, continuous defaults by real estate and infrastructure sector etc. have put banking and financial sector as a whole under huge stress. Government needs to see that how quickly it brings the economy out of this rut.

But we are seeing growth quarter-to-quarter basis, though slowed down andthat’s why we can’t call present situation an economic crisis.

Mukul Bhartiya: What should government do to reverse the situation and increase the opportunities of employment?

Suraj Sharma: Government has taken many steps to revive the situation but if things don’t start improving in next eighteen month or so, then as I mentioned earlier, it will trigger bigger crisis.

Infrastructure/real estate/industries/power etc. projects should not be financed by commercial banks. Instead, they should be financed by long term investors through debentures .You tell me which bank accepts fixed deposits for 20-30 years and which infrastructure project becomes cash positive in 5-6 years? Even residential projects of real estate sector take more time to complete than that.

Apart from bringing in RERA for removing the frictions of real estate sector and pave the way for more legitimate funding, Government has created the necessary rules and policy structure to encourage REIG(Real Estate Investment Group) investing to clean up the real estate investment, bring more transparency and make real estate projects more viable. Recently announced Rs.25,000 Crore Priority Debt Fund to revive stalled real estate projects is a critically important decision. It will give relief to much aggrieved home buyers. All the steps taken by government will bring synergy between investors, developers and sellers and foster growth. Now, only thing is to be seen is how quickly all these steps fructify result.

Barring 4-5 banks, all nationalized banks have come out of NPA mess. To make liquidity available in the market, government is aggressive on repo and other fiscal rates.

Boldest of all the step is corporate tax to be levied on new manufacturing set up to come up after 1st October 2019, which is 15%. If you add cess and all, then it will not be more than 17% and it is lowest in the world. Government might have done so keeping US-China trade war in mind, expecting companies flying out of China may land up in India for setting up their infrastructure. I can’t comment right now about its impact on fiscal discipline.

Helping banks to clean up NPA mess, recapitalization of banks, aggressive interest rates, aggressive corporate tax, reduction in base corporate tax, creation of fund for interest subvention scheme for GST registered MSMEs, holding hands of real estate sector through RERA, REIG etc., government is doing many right things.

Though government has taken many steps in the right direction, but all of it has to bear the result very quickly. A lot of time has already lapsed and things can’t be delayed anymore. Liquidity crunch has prolonged for too long and media sentiment has been depressed for too long. Remember that negative business sentiments have domino effect on overall business scenario and one fall triggers others to fall. Liquidity crunch does not happen just because of unavailability of funds in the market, it also happens because of unavailability of intent and courage among the investors. If it continues, then SMEs and MSMEs will start defaulting and since most of government’s lending are to this sector, it will create the challenge which no one has ever imagined.

Further, government shall bear in mind that Indian economy has never been in the stage where policy decisions of such a humongous nature can’t be implemented in such a quick succession. Implementation of GST will take at least three to four business years for everyone to see which direction it will move. Business community will get adapted to its implementation and government will be able to plug the holes and explain it clearly to them. Similarly, real estate sector will take time to work on the lines of guidelines set by RERA.

Government and RBI shall see that credibility and reputation financial sector is restored and that also on priority basis. They must see that without any delay depositors’ interest is protected and they again repose their faith in country’s banking sector. Business decisions can fail but business decisions quite adverse to very common business sense shall not be acceptable. Promoters shall not be allowed to have executive position in private banks and no executive should be allowed to hold the top position for more than 10-15years or so. Government and RBI shall see that executives holding highest position in banking industry must get enough time to execute their decisions but must not get time to be synonym with the organization itself. Government shall also see that individual account holders shall have insurance cover of at least Rs.10 Lakh or even more for the deposited money with a bank; right now it is Rs.1 Lakh and it is very less. Government and RBI shall work towards rebuilding trust of depositors towards banking and financial system of the country. If it doesn’t happen, then nothing will happen.

By a rough estimate, India produces paddy, wheat and whole pulses together worth Rs.5, 34, 020 Crore, calculated at MSP for paddy and wheat and bulk price of pulses in whole form. If we take the data of public consumer expenditure for the year 2014-15 made available by Ministry of Statistics and Programme Implementation in public domain and extrapolate the impact of inflation every successive year, India’s private final expenditure on food and non-alcoholic drinks may stand around Rs.18.9 Lakh Crore. It gives a glimpse of scope of business opportunity it provides.

Mr. Nitin Kumar, Company Secretary by qualification and investment and start up expert by profession has worn many hats; but when this time when he told me about his new venture Bishanpur Natural Foods Pvt. Ltd., I would be lying if I say I was not surprised. Since beginning of his professional career, he has been through and through finance professional helping his clients to make money in stock and/or real estate market or investing in general merchandise, education or health start ups. But this time, he not only invested but has been successfully running the business of speciality flours, fox nuts and flax seed. After talking to him I could understand his passion of bringing healthy food which our previous generations used to eat and has disappeared from our plates with changing time. But why was I surprised; because sales of food items demand combined of physical and mental hustle than the just mental one required in financial or real estate market. But as Ann Landers had said “Opportunities are usually disguised as hard work, so most people don’t recognize them”, he chose the hard work way and entered into this business. He is CEO of Bishanpur Natual Foods Pvt. Ltd. 

I asked him straight three questions to understand why is he in this business, what he has to offer, how it will benefit his consumers and where does he see his business in short and medium term. 

Mukul Bhartiya: You are finance professional by education and experience. What led you to venture into food processing, distribution and marketing business and that also, niche products like Chana Sattu, Makhana and Flax Seed?

Nitin Kumar: When I tell you the reason behind it, you will also empathise. Though I am from Bihar but I have lived better part of my life in Delhi and Gurgaon. Who better than person like me can understand the importance of healthy food and healthy life. For us, even pure air to breathe has become a scarce thing. You might have seen the images of hazardous foam emanating from River Yamuna during Chhath this year and let me tell you that this not something new as phenomena. This has been the scene for so many years and it is also open secret that most of vegetables coming to National Capital Territory market are grown in the river base of Yamuna. 

All the trappings of modern lifestyle has taken one thing from us; our time for ourselves. We are always in the rush to reach one place or another, barely taking time to breathe. In order to reach somewhere, we have moved as far away from the nature as possible. And look what it has done to us; it has not only taken us away from nature but has taken away our physical and mental health. 

Having lived a life with these trappings around, we have realized that answer of healthy life is to slow down, look back and find what we lost in the rush of reaching somewhere. Retracing healthy footprints are always good. Our older generations lived life closer to nature. There were no mechanized machines to grind the food; so, most of the nutrients were retained in the food for our consumption. We are making a genuine effort to dig deep, research and find out the natural food for you. We are reclaiming our past with pride, we are reclaiming our health back and we reclaiming our life and the battle start with food.

At Bishanpur Natural Foods Pvt. Ltd, we follow every process to retain the natural nutrients every food has to offer by cold press milling technique. Words become command, command becomes commitment and commitment sets the direction; and our commitment is to take our food habit closer to nature.

Mukul Bhartiya: Please tell our readers about your products and how they benefit from it?

Nitin Kumar: We are in constant search of food which are healthy, wholesome and queen of plates of older and previous generations. I am keen on that. Our first product is Chana Sattu. 

Though there is no specific mention about the origin of word ‘Sattu’, but looking at the nutritional values it provides, it must have come from Sanskrit word ‘Satvik’, which means ‘pure’, ‘complete’, ‘ontological’. No other cereal or pulses is as complete and wholesome as ‘Chana’ or ‘Hoarse Gram’, because it has right amount of Protein, Dietary Fiber, good Carbohydrates, low glycemic index and absolutely no unhealthy unsaturated fat. While almost all the cereals and pulses provide between 150-350 calorie per 100 gram with cereals providing extra carbohydrate and pulses providing extra protein, ‘Chana’ provides energy exceeding 400 calorie. These nutrients build your muscles, make your bone strong, help in preventing constipation and keep your stomach healthy, regulate fluids and blood pressure of the body, fights diabetes and give you the energy to stay active whole day. There are numerous benefits of Chana Sattu.

Some of them are as follows:

• You can drink and eat it both.

• It is high on calorie with good amount of whole carbohydrate, dietary fiber and protein.

• It is gluten free.

• Carbohydrate in Sattu is soluble and ingestible carbohydrate, which is very much required for energy. It is a fallacy that low carbohydrate diet is good. If you don’t get the energy, then how will you survive? Your food should have 45-50% whole carbohydrate to keep you alive and active. 

• It keeps your stomach healthy by preventing constipation. You may be aware that constipation is the cause of many bowel related ailments including gastrointestinal diseases, which has the capacity hurting other part of bodies as well. -It reduces the risk of coronary heart disease, hypertension, diabetes and obesity. 

• Zero saturated fat in Sattu makes it an ideal food and drink.

• Protein in Sattu makes your bones hold the muscles and keep your liver healthy. It makes you look healthy and young. 

Our second product is Makhana or Fox nut. ‘Makhana’ is amalgamation of two Sanskrit words: ‘Makha’ and ‘Anna’. ‘Makha’ in Sanskrit has two meanings ‘sacrificial oblation’ and ‘active/moving/to go/move’ and ‘Anna’ means ‘food’. So, one meaning of ‘Makhana’ is a food which is offered for sacrificial oblation or which is offered to god. Another meaning of ‘Makhana’ is the food which keeps you ‘active’ and on the move, which means it keeps you energetic. Makhana is rich source of protein, calcium, dietary fiber, good carbohydrate and absolutely zero saturated, polyunsaturated and monounsaturated fat. With total 350 calorie per 100 Gm, it is good for your bones, muscles and gut and helps you fight diabetes and blood pressure.

Darbhanga, Madhubani and other parts of erstwhile Mithila Kingdom or present day Bihar produces ‘Makhana’ the most and has been consuming the most as well; now whole world has realized its importance.  

You can eat Makhana raw or after roasting or frying. You can also make different varieties of sweets and pudding from Makhana. 

Benefits of Makhana are many; few of them are as follows:

• Dietary fiber keeps your stomach free from constipation, helps to prevent coronary heart disease and reduces hypertension and chances of stroke.

• Protein helps your bones to hold muscles, makes your body fit, strong, healthy and young.

• It improves the health of your liver.

• Calcium makes your bones strong.

• It is fat free, full of whole carbohydrate, protein and dietary fiber, which makes it a super healthy food without the fear of adding fat in the body.

• Whole carbohydrate gives you energy to be active, fit and fine. 

• Right amount of sodium and potassium in Makhana helps to keep the blood pressure under control and keeps cellular function of your body up and running. 

Our third but not the last product is Flaxseed. Flaxseed is another super food, which should be part of our daily diet. It is very high on protein, carbohydrate, dietary fiber, calcium, Bitamin B-6, Iron and Magnesium. 

 ‘Chana Besan’ is the latest addition in our product portfolio.

Mukul Bhartiya: Tell us about your plans to take your products and idea behind them to wider consumer base? Please also tell us where do you see your business after five years?

Nitin Kumar: See, ours is the social enterprise. Though we can increase the production capacity by rapid mechanization, but our focus is not just providing healthy food options to our consumers but providing as many employment opportunities as possible in rural areas. When you increase the number of human hands at work then it is quite obvious that speed of work gets slowed down. 

In the first year itself, we have established our distribution network in many districts of Bihar and parts of National Capital Territory. In next five years, we will cover entire Bihar, Jharkhand, West Bengal, Uttar Pradesh and Delhi. We are aiming the turnover of Rs.50 Crore in next five years. 

If you want to take the distributorship of Bishanpur Natural Foods Pvt. Ltd., you can reach out to concerned persons at enquiry@villfood.in and + 91 7011 326 404, +91 8700 209 659.

On 31st December 2019, Union Finance Minister Nirmala Sitharaman launched a massive push for infrastructure development with the commitment to invest Rs.100 Lakh Crore in different infrastructure projects in the ratio of 39:39:22, where 39% each will be invested by Central and State Governments while 22% will be invested by private parties.

Since Budget 2020 was just two months away, this huge announcement, though welcome step, made me ask one thing; of late, has budget been reduced to glorified annual event or does it still hold some relevance. Not just this singular event but at regular interval, Finance Minister herself leads from the front and interacts with media about policy and strategy interventions.

I asked Mr. Suraj Sharma, CEO, Punarvasu Financial Services Pvt. Ltd. about his expectations from upcoming budget, open discussion about regular policy and strategy interventions by Finance Ministry and prospect of India becoming a $5 Trillion economy by 2025.

Suraj Sharma: In my opinion, during second term of NDA government, annual budget looks like becoming more a celebratory affair of long practiced routine. Government, by intervening from time to time and interacting with the country through media has made annual budget more for middle class customers to see what is in store for them, like tax breaks and cost of household and daily use items going up or down. But I must say, it is doing the right thing. It helps in making two things very clear that government is ready to listen and it is always willing to take corrective steps.

Finance Minister’s announcement of Rs.100 Lakh Crore National Infrastructure Pipeline for next five years is a welcome step towards ushering country to $5 Trillion economy. Even if government misses the timeline by a year or two but $5 Trillion economy is not an unachievable dream.

I would be keen to see from where this money to fund these projects will be generated and where are the private partners to work on these projects. I am saying so because almost all the companies working in big government infrastructure projects are already heavily debt laden.

Mukul Bhartiya: I was listening to Ms. Geeta Gopinath, Chief Economist, IMF at Indian Economic Conclave 2019. She was worried that India’s private consumption is down, investment has slowed down and whatever growth we are seeing in last couple of quarters is due to the government’s spending. Core inflation is at 3.5%, which along with weak import is also a sign of weak private demand. That’s why, IMF will revise India’s GDP growth forecast drastically negative in their report to published third week of January 2020.

Suraj Sharma: I have a little different opinion than experts on the topic of sluggish growth in private consumption. Indians by and large were never of extravagant nature. So, I have my doubts firmly placed about decline in core consumption items.

Let’s talk about the most talked about item in the slowdown discussion; cars. If auto industry is facing the challenge of slowdown, then how come KIA and MG Motors are ramping up the production? Indian companies needs to be little bit more accepting towards their inefficiencies and the point that every time they can’t run to government to bail them out. Why should government, at public’s expenses, bail out the corporates for their inefficiency. Let me give you one example without naming the company. The amount of time a leading steel manufacture of India takes in producing a quantity of steel, china takes less than one third of that time and it is reflecting in the total steel production of both the countries as well.

Indian consumers are willing to pay but for the quality. Old companies can’t rely on old ways to win new customers. They will have to deliver the quality. They can’t keep cribbing about slowdown in demand.

What I am more bothered about is the infrastructural capacity to handle frictions in life journey of the business and their tracking mechanism.

Let’s take two example; NPA of one liquor to aviation conglomerate and another one is cut in corporate tax. Despite the first case hanging in air for so long, we are not aware when will this case be done and dusted. This is not single case to bother about; there are many. So, these cases need to be resolved and closed on priority.

The next example I mentioned is of corporate rate tax cut. When you cut the tax, there are obvious two outcomes: i) Growth in the business ii) De-growth in tax collection. Tax cut only make sense when tax collection due to growth in business and subsequent tax collection offset the de-growth in tax collection due to tax cut. But this data is not available. Government must have the capacity to measure every metric it sets out to take economy towards growth and $ 5 Trillion GDP by 2024.

You can also read Mr. Suraj Sharma about his slowdown on Indian Economy Is Indian Economy Under Slowdown or Crisis

Union Budget 2020 is not very far away and everyone is curious to know how this budget will shape up to propel consumer, industry and investor’s confidence and put India on the track on becoming a USD 5 Trillion economy by 2025.

I have been talking to people, who hold senior positions in the industry and has also been interacting with real people who matters most for the budget.

A fortnight back I had talked to Mr. Suraj Sharma, CEO, Punarvasu Financial Services Pvt. Ltd., who, as an investor, has been interacting with entrepreneurs, SME and MSME business persons on the regular basis. Mr. Suraj Sharma On His Expectations from Budget 2020

Couple of days back, I talked to Mr. Amit Mishra, Founder- Director of Agrius India Private Limited and Ambrocia Seeds Producer Company Pvt. Ltd. about his expectation from upcoming budget. His company has around 1500 acres of land under seed cultivation and distribution across Madhya Pradesh, Uttar Pradesh and Maharashtra. I also asked him about his opinion on much discussed fall in private consumption in India, which according to the experts is a worrisome sign. Since he has been constantly travelling into interiors of the country and has been meeting with farmers, I thought he is the right person to ask this question.

He said, “Government provide subsidies at four different level to the farmers; input level, output level, infrastructure level and food processing level. Seeds, irrigation, crop insurance, price support for the output, marketing support, support for warehousing and cold storage, support for food processing; you name any aspect of agri production and government have schemes for the same. Not only central government but state governments also provide bonuses and support to farmers.

Challenge is not the lack of support from government. In fact, there are too many schemes from the government for the agricultural sector. Even if government takes away few of them, it won’t matter. Actual challenge is these schemes reaching out to the farmers. I have witnessed massive leakage in the government schemes and public money being looted in the name of farmers. Would you believe if I tell you that there is no less than 30 to 40% leakage in almost all government scheme meant for farmers? In some areas, these leakages are to the extent of 50%. Even if the free kits are provided by the government, bills are inflated to bungle the money meant for farmers. This leakage needs to be stopped not only for the benefit of farmers but nation as a whole.”

Startled at this revelation, I asked him whether I can quote these numbers and attribute it to him and he strongly accepted to my question.

He continued, “What I expect from government in this budget is a three layer monitoring and audit mechanism, starting at block level, then next layer at district level and third at state level. Every Panchayat must be made to put all the information updated on Panchayat Building informing everyone in the village about schemes being run by government, money received and spent under each scheme and number of beneficiaries.

With so much technological advancement in the Information Technology field taking place in the country, government must make use of it and see that money reaches to actual beneficiary. This should be one of the crucial steps to be taken by the government.

Regarding your question of fall in private consumption in the country, my submission would be to look at overall growth or de-growth in the demand of any particular item. Please don’t take de-growth in the demand of any brand as a benchmark. With the change in time, there will be demand shift from one product to another and we should be factor it in while making any commentary. You might be seeing change in eating behaviour of urban population which is quite different from rural or rural-urban population; from breakfast items to quantity and quality being consumed for lunch and dinner. Similar pattern can be seen every aspect of life.

I am seeing demand shift, I am seeing Indian consumer’s awareness and demand for quality products and services but I am not seeing private demand de-growth. New players are challenging old guards; old guards are collaborating with new players for part of their work, old boundaries have already been dismantled and new boundaries are being set. So, I am not in agreement with this charade of de-growth in private consumption.

I hope I have answered your questions”.

I thanked him for giving his valuable time for this quick chat.

I reached out to Mr. Sanjay Kumar Thakur, Chief Data Officer and Head-Treasury Product Control, Balance Sheet Analytics, Fund Transfer Pricing of Saudi Investment Bank to know his expectations this Union Budget 2020. Mr. Thakur is Ph.D in Portfolio Risk Hedging and Management from Shailesh J. Mehta Institute of Business Management, Indian Institute of Technology, Bombay, Chartered Financial Analyst from ICFAI, Hyderabad, Post Graduate Diploma in Banking, Banking & Treasury Operations, Credit Analysis & Comm. Lending, Banking Laws and Accounting Practices from University of Pune and MBA(Finance) from Center of Management Education, VAMNICOM, Pune.

Sanjay Thakur: This budget should be clearly targeting few themes: (a) Employment (b) Consumption (c) Reforms for growth revival  

A. Employment: I think govt will and should do anything and everything on employment front. I expect huge focus on MSME and Agriculture sector as 93% labour is still depend on these sectors and this time even rural economy is hit. Next would need clear focus be Infrastructure (there is enough political and economic reason that, construction may get infrastructure tag) and Textile. There must be a mechanism to revive NBFC model with more prudent regulation around it and I expect bold announcement on building a bank-nbfc-developer mechanism for guaranteed housing project completion. Textile needs immediate care and gems and jewellery as well as leather sector needs clear support as export is down by 3.27% and not great silver lining in near future thanks to Coronavirus now.  

B. As corporate tax cut was already given late last year, some thrust on corporate lending should help build environment for capital investment rate which has halved by now. Govt capital expenditure will have to lead the way though as it has been lesser than expected. To boost consumption, I expect some relief on individual income tax like increase in slab for zero or lesser tax rate. I also expect higher investment limit than Rs. 1.5 lac under 80c. The same goes for medical insurance and investment in NPS to get (e-e-e) status. After so many pay-commissions, I also seek a need for some kind of parity between tax treatment of benefits to govt and private sectors employees. I expect LTCG to get removed as it was almost nonsensical decision. These initiatives either encourage saving and investment or increase consumption immediately. I expect some relief to Auto and Telecom sector as well. 

C. Reforms for growth revival is something I expect to see. Thrust would be on Land reforms, selectively on labour reforms and legal side of ease of business. Inflation particularly food inflation has started appearing due to wrongly RBI focusing more on growth than inflation which is actually govt primary domain. I expect some clear thrust on SEZ type work-around, startups to support make in India and digital India initiatives. What are the do's and dont's you are suggesting to Mrs. Sitharaman? =) I hope she will loosen the fiscal deficits targeting at least by 25bps. She shouldn't worry too much for it right now. She must also not continue the LTCG at any cost and taxation on dividend income should be eased as well. As there is chance of reduction income tax slab for common man, there is a possibility to re-instate Estate tax to tax wealthy people which is not good idea. It may bring less in value but may send negative vibes to the wealth creators.

The way I see random people, who probably may fail to spell word ‘economics’, throwing the words like slowdown in GDP, economic crisis etc. I remember the quote by famous statistician, risk and probability expert and author of Fooled by Randomness, The Black Swan, The Skin in The Game and many more Mr. Nassim Nicholas Taleb.  

He says, “It has been more profitable for us to bind together in the wrong direction than be alone in the right one. Those who have followed the assertive idiot rather than introspective wise person have passed us some of their genes. This is apparent from a social pathology: psychopaths rally followers”. 

A friend of mine suggested to read the business journey of an Indian business giant involved in consumer electronics to DTH to petroleum and energy business. To my surprise, this company acquired 15 companies in 20 years time and changed the structure of organization 30 times without showing sustainability and positive cash flow without manipulating the operations in any of the business. It financed the business by borrowing funds from commercial banks and invested in the business of energy and natural resources which are highly capital intensive and requires investment for decades. For their consumer electronics items, if news from leading newspapers is to be believed, then it suggests that credit tap for distribution channel partners never dried up. When this business house filed bankruptcy, shamelessly its owners blamed the demonetization. A clear cut case of crony capitalism cried victim when asked to straighten up. And this is not the isolated case.  

I talked to Mr. Sumit Agarwal, Equity and Derivative Strategy expert and Founder of Cap Matra Wealth Consultants Pvt. Ltd. New Delhi, who, for last fifteen years has been having his finger on the pulse of Stock Exchanges in general and Indian stock and commodity exchanges in particular. 

Though my focus was to know his demand from Finance Minister in this upcoming budget, but I stretched the scope a bit tried to have his opinion on what is going right or wrong with the economy and what are his expectations from the budget. 

Sumit Agarwal: Let us retrace few of the many steps taken by present government in the recent past.

Government has been raging battle to bring in transparency to clear this NPA mess created mostly between 2008-13. Now at least it is clear that which bank is carrying how much toxic and non-performing asset in their balance sheet and efforts are being made at feverish speed to clean that up. Close to Rs.90,000 Crore NPA was cleaned between 2018-19. Though it is still standing at around Rs.8 Lakh Crore, but government’s effort is visible on ground. Even small borrowers are being asked to pay up their long due loans. I can’t tell you the formula of payment being recovered from them, but I assume that they are being asked to pay up the actual loan plus some cost, but they are being asked to pay. 

Second action which is commendable is streamlining NBFC finance. It was faulty from the beginning itself. NBFCs used to raise finance from commercial banks and mutual funds using short term loans or selling short term commercial papers for a period of six months and then giving home and car loans to consumers for period ranging between five to twenty years was not making commercial or legal sense, it required continuous refill of money and it made absolutely no business or legal sense. Since it was bringing in growth in retail consumption of consumer durables and other sectors, everyone was riding along. But this bubble had to burst and it did burst with IL&FS. Now NBFCs are finding it tough to raise money and it is reflecting in consumer market behaviour. 

Along with RERA, another decision which is proving be great in “Insolvency and Bankruptcy Act”, which is forcing crony capitalists pay up. As far as RERA is concerned, it is definitely a much needed step by the government. We can’t forget implementation of GST here which was again need of the hour to bring uniformity in taxation and increase the ease of doing business.  

Though above mention steps have slowed down the economy due to implementation woes, but you will agree with me that you can’t live with cancer for too long and when it is operated, it will slow down your speed drastically till you fully recover.

So, coming back to second part of your question about what should be done to bring economy back on the high growth trajectory, which is required to make India a $ 5 Trillion economy by 2025, I think government needs to take many steps but I will list out my preferences here. 

First and foremost, government must do everything what it takes to increase private investment in SME and MSME sector. This sector is under tremendous stress. It was unorganized, mostly driven by cash economy; GST and demonetization proved too much for it. Where the line of good or bad gets blurred is the fact that SME and MSME sector drives India’s growth story and provides maximum employment. So, while GST and demonetisation were much needed step, they brought in the separate set of challenges. India’s import from China is somewhere around $ 60 Billion and most of them replace items being manufactured by these SMEs and MSMEs. For a country like India and the nature of economy it has, it can’t continue to have this huge import bill and nature of import from any country. 

Not only that, government must take the responsibility of technology and marketing communication of products manufactured by this sector. Not many of them can pick up the art of communicating features and benefits of their products. Government needs to do it in domestic as well as international market. Government must go out and tell everyone that why products manufactured by our own SMEs needs to be purchased. We all know how Chinese business operates. We need to pump up our business if not protect them.

Next step which government needs to take is ensuring smooth coordination between the center and states. I am very well aware that India is federation of states and state has autonomy in certain aspects of their existence and may have interest different than the nation, but government will have to ensure that.  

You know that market few years back was unstructured, but with the entry of big technology and online retail companies, price discovery of each and every item has become much easier than it ever was. With smart phones in every hand, it is reaching in every nook and corner. Technology is making the market structured and with this, market is losing the incentive unstructured, unorganized market offers, because consumers are at ill to know what could be the actual or standard price. So, if lack of coordination between center and state government will only complicate the matter for the business. While consumers will know at what price they should buy the product, friction between state and central government will increase the cost for manufactures, making entry of foreign players easy and thus circumventing the growth or even existential prospects of domestic companies. Individual small players can’t keep running and coordinating between state and central government. 

GST, despite all its benefits has become a big challenge for micro and small business units. What we have seen is this government is very poor at communication of acts passed in the parliament and schemes launched in the budget or otherwise. There are enough people who are supposed to help these micro and small business units to understand and help with taxations indulge them more into scaremongering. What I expect from the government is continuous training and information dissemination till this entire GST thing is streamlined and drilled down in every possible and prospective businessperson’s mind. Tax filing should be made as simple as possible. 

Stock market is the indicator of economy; health of economy reflects here. From January 2018, Small Cap Index is down 40% and Mid Cap index is down 22% and clearly indicates that Indian economy is under slowdown. My expectation from the government is increase the slab of no income tax from Rs.2.5 Lakh to at least Rs.5 Lakh. It will put more money in the hand of consumers and help boosting the consumption. 

Second point is government should rethink its position on Long Term Capital Gain Tax and Dividend Tax. Dividend tax is clear cut case of double taxation, though may be unintended but is negative element of tax legislation. Long term capital gain tax is holding back individuals from staying invested in capital assets like real asset or holding stocks for longer period. This way, government is stopping companies from raising long term fund and if companies find raising long term capital unattractive or difficult or costly, then how will they fund their capital expenditure. 

Last but not the least, I want government to check what it is the outcome of its expenditure on agriculture. I know agriculture is tricky subject to touch but at least there should be some calculation on how much is being spent on agriculture, starting from the input to irrigation to output to infrastructure building to food processing and what is the productivity of this spending. I don’t think government can in anyway reduce spending on agriculture, but it can definitely know the outcome of spending. Further, I would also request government to make all possible effort to stop the leakages in different welfare schemes and subsidies doled out to the people of this country. 

You may also like to read Mr Sanjay Kumar Thakur Chief Data Officer Saudi Investment Bank of his expectation from Union Budget

In the time of conflict and fear due covid19 pandemic many people are on edge. They are seeing no light at the end of the tunnel. In this situation, it is well understood that mind goes to travel many places, often unpleasant one. But, that's not how life is to be lived in this difficult situation. Hormones related to stress, cortisol and adrenaline clogs the neural network and slows down the thinking process. Our behavior during conflict, fear and pain is quite obvious, though it is not desirable. 

There are steps to come out of it and they are: 

1) Acceptance: First and foremost action needed is to accept that present situation is not normal and not good. Our mind has many biases and heuristics, optimism and confirmation bias are two of them. If we don't accept the present situation and try to believe something else, then our mind will make us believe so and keep us forcing to confirm our created reality. 

You will ask that why does our mind create a new reality?

Our mind always has a ‘big picture’ of our life. Information arriving through our senses keeps getting merged into our pre- existing memories to confirm and sometime update our belief system about ourselves and the world. In the case of anomalous information which doesn’t fit our big picture, it tries to smooth the discrepancies and anomalies to preserve the coherence of self, our internal narrative and the ‘big picture’. Sometime it outrightly denies the situation, sometime rationalizes, sometime confabulates, sometime intellectualizes, so on and so forth but it does its best to protect the coherence of self and internal narrative. 

2) Live in present: The moment we create a new reality, mind becomes optimistic and starts confirming to this new reality. It automatically shifts the starting point of our journey. If starting point of our journey is not right, then how come end will be right? 

So, being aware of the present and staying in it is extremely important.

3) Mindfulness: There is more than enough written and spoken about mindfulness, so, I won’t go on to elaborate what it is and how it should be done. What I understand for my benefit is that mindfulness is keeping only those information in my mind which is necessary to move forward for my betterment. 

Our mind receives more than two hundred thousand times of information per second which it can process. You can very well imagine what would be its situation in just one day if it doesn’t filter most of the information out it receives. Our mind’s primary job is to protect the body it lives in and everything revolves around this core principle.

While a part of mind keeps doing its work to stop information overload, there has to be conscious effort to push away the information which are stopping the positive growth.

4) Remain alert: It is definite that post Covid19 world will not be the same. Every upheaval shakes up the old world order and creates new. While there are many defined steps which helps us to succeed in life, but one thing which often gets ignored and has rightfully elaborated by Malcolm Gladwell in his bestseller “Outliers” that grabbing the opportunity when it comes up goes a long way in determining the success of a person. So, if you don’t accept the reality, you are not living in present and have not pushed away the information which blocking your growth, how can you remain alert and if you are not alert, then how will you grab the opportunity when it comes knocking your door.

5) Make above four points a automatic habit: Every moment, billions of neurons in our mind connects with each other tens of thousand times, which can be excitatory or inhibitory and on or off, making permutation of all these numbers of possible brain states exceed number of elementary particles in the known universe. So, things are not simple as it seems. 

That’s why, we need to keep repeating the first four points and turn it into an automatic habit; then only, our growth and success will be remain sustainable and consistent.

Few days back, with someone feeble, I had a discussion on something. His words triggered anger in me. Before I could control, my anger became apparent through my words and behavior. More than his words, I didn't appreciate my behavior of losing control over myself. His words, though not favorable to me, were also not harmful for me.

Then why did I get angry:

May be because,

1) His words challenged my perceived position of thoughts and correctness.

2) I didn't like the way he talked and I took it as an effort to undermine my intellectual strength, superiority and position.

But was my anger justified?

I don't think so...

I am not intellectualizing this scenario.

Here are some of the reasons why we become angry:

 - Our perceived intellectual/spiritual/religious strength/superiority over others is challenged by someone's direct or implied behavior and action.

 - Our actual position on anything is challenged and undermined by someone's direct or implied behavior or action.

 - We or anyone close (actual and assumed- religious/sports/group/affiliation etc.) to us is threatened to be harmed or actually harmed by direct or implied behavior or action of someone. 

While last two points are not rarity, but there percentage in our anger outbursts are very limited. We often react/respond to perceptual positions of different parties, which has no strength and position to take our life in any direction, especially the negative, until and unless we make it take us there. 

I dedicated good amount of time to ponder over it and find what should I do in this situation and I got following answers: 

1) Don't embody the moment and actions which triggers anger; it is not the matter of your existence.

2) Don't define yourself with the moment; you are much bigger than that.  

3) Listen, analyse and appreciate, opposition's points, take few deep breath with smile and move away from the scene if you can do so. 

4) If you don't have the option to walk away , then listen and appreciate the points raised the your opposition, take few deep breath, remember point no. 1 and 2 and then answer in measured words.

5) When you are replied back, then folllw point no. 1,2 and 4. This may not be the correct way, but I have started following it. 

Please do write your feedback. 

 You may find this article also useful: How to succeed in the time of conflict

Often it takes some calamity to awaken us, makes us live in present and see all the mistakes we have committed. When it has been suffered, first thing to be remembered is how much has escaped and how to move forward with that in the new direction.  

COVID19 is overwhelming for all. World is under lockdown; either stated or federal mandated. Everyone is joining hands to fight this challenge together in whichever way they can. But at the same time, everyone is also curious to know how post COVID19 world will be. 

So, I requested Mr. Sanjiva Jha to guide me and my readers about it. 

Mr. Sanjiva Jha is Founder-CEO of BroadArk Technologies Pvt. Ltd. His company owns the brand Y&NOW and works in the field of Education and Skilling. But this is just a small part of his illustrious career of around 28 years at leadership positions with LabourNet Services India Pvt. Ltd., Tata Teleservices Ltd. Reliance Retail Ltd., Boots Healthcare, Cargill India Ltd. etc. He has Masters degree in Management from IRMA and Bachelor degree in Chemical Engineering from BIT, Sindri. He has led cross functional teams during growth, massive organizational restructuring post US subprime crisis and merger & acquisitions. So, who could be better than him to guide us and see this current situation in right perspective? Here we have his views

 The Covid Impact: 

What has been the most striking impact or consequence of the Covid pandemic?

I believe some of the most striking consequences of this pandemic have been the game-changing impact on our social behaviour and patterns of economic activity. And yes, the economic impact will be rather severe and could be crippling for the economy if not addressed immediately but at the same time this will also present some opportunities! Speed, agility, and innovation are required from governments, businesses, and society in crafting responses to cope with this evolving new normal. 

Let’s look at where India stands in all this pandemonium caused by this pandemic.

One of the biggest casualties of the lockdown and the ensuing social distancing has been the informal sector - the daily wage earners, the migrant labourers, the gig workers and the contract workers. We saw some rather grim images of stranded migrant labourers in light of the lockdown. It was distressing to see migrant workers walking hundreds of kilometres to go back to their native place. We have witnessed a huge volume of reverse migration - workers rushing back to reach their homes from the Metros and mini metros. The government and other public agencies have been quick to act and organize relief measures and helplines to direct the flow of these people. Has it been enough, perhaps not, a lot more needs to be done as these sections do not have the wherewithal to withstand the prolonged period of lockdown and then there is the question of how do we get them back to work post the easing down of the lockdown situation? No easy answers here but surely a lot more needs to be done in terms of just providing basic relief and survival kits. We have seen a stimulus of around 0.85% of the GDP being announced by the government; this may need to be bumped up significantly. Sample this we have Germany which has pumped in around 8%, Malaysia at 16% of the GDP,(these are far smaller countries with a population of 83mn and 32 mn resp) agreed these are economies at a different phase not comparable to India but we do need to reach out to this section with more, the prolonged lockdown till May 3rd will only add to the woes..

The rising uncertainties in contractual labour will also impact the MSMEs. Exports, which account for a large chunk of MSME earnings, are expected to fall as the US and Europe are reeling from the impact of the coronavirus. 

Another impacted sector would be the non-essential items due to a steep reduction in the consumption. These include consumer durables like TVs, ACs, transport, communication services, Lux goods, Beauty salons. This is certainly the quarter these companies would like to forget... With increasing job losses and pay cuts across industries, non-essential spending will be hit further, and big businesses will be affected eventually. One of the worst hit sectors amongst the non-essential is the apparel sector which employs a sizable number of contract labourers. Not difficult to fathom, the lockdown has necessitated temporary closures of factories and lay-offs of low-wage earners. We could see a possible opportunity here, as the sector reeling under reduction in yarn exports and restriction on raw material imports will give a fillip to the local sourcing opportunities for garment manufacturers, which may prevent prices from going up once the markets open.

The other big industry which will continue to face the downturn and probably face extinction in the short run unless they innovate and move onto other business streams - logistics or the last mile delivery for instance, Travel and Tourism. The sector is reeling from large-scale cancellations and a complete pause on domestic operations. Both outbound travel and inbound travel to India are expected to be at an all-time low this year. The losses are estimated in the range of Rs.90-100 bn. 

Essentials will continue to be in demand and get serviced and fulfilled with the government taking an increasingly active role in ensuring uninterrupted supplies of ‘essentials’. Essentials include food, clothing, soaps detergents, soaps, detergents, housing, gas and electricity. A word of caution, any prolonged disruption of the supply chain might lead to shortages and thus inflation in the medium term. Ecommerce, retail and internet businesses would be less affected because most of their offerings fall under “essential items”.

So, what is the plausible way forward? Who are the winners and who are the losers in a limited sense here?  

Clearly a massive round of stimulus would be required to ensure the marginalised sections sustain the lockdown and we build resilience in the economy. According to the Economic Survey of 2018–19, almost 93 percent of the country’s total workforce—an estimated 437 million people—is informal. This includes agricultural, construction, manufacturing, sanitation, and domestic workers. This sector contributes to nearly half of the country’s GDP. A tough balancing act considering the fiscal deficit is already under pressure and not in the best of health so to say. 

Who are the winners - Pharma, ecommerce, retail, fmcg, IT ITES, Healthcare, logistics

Who are the losers - Travel and Tourism, Inland Transport, Restaurants and Eateries, Consumer Durables, Banking and Finance

India has been amongst the first few countries to take up the Covid fightback plan early on, though the curve is yet to be flattened but shows signs of containment, with a well-planned comprehensive measure starting with testing, tracking, tracing, containment and enforcing social distancing it is expected that we will be able to build the necessary resilience, next two weeks would be critical. 

You can reach to Mr. Sanjiva Jha at LinkedIn Address

This article was written by Mr. Sanjiva Jha on Linkedin. Link of the article is here: Reigniting the economy

Mr. Sanjiva Jha is Founder-CEO of BroadArk Technologies Pvt. Ltd. His company owns the brand Y&NOW and works in the field of Education and Skilling. But this is just a small part of his illustrious career of around 28 years at leadership positions with LabourNet Services India Pvt. Ltd., Tata Teleservices Ltd. Reliance Retail Ltd., Boots Healthcare, Cargill India Ltd. etc. He has Masters degree in Management from IRMA and Bachelor degree in Chemical Engineering from BIT, Sindri. He has led cross functional teams during growth, massive organizational restructuring post US subprime crisis and merger & acquisitions. 

Reigniting the economy 

We are witnessing massive changes in the workplace today due to the digitization wave to newer and different skill sets required to address the increasingly demanding Industry requirements. As we see, relevant skill sets isthe need of the hour and in this world of Volatility, Uncertainty, Complexity and Ambiguity (VUCA). 

Which are some of the sectors likely to need large numbers of skilled personnel to keep pace with the transformational change ? 

A recent McKinsey report on future of work estimates that almost 50% of work that one does can be automated and that in 60% of the cases almost one-third of the jobs can be automated with technologies existing today! While the impact on various sectors in different countries could differ depending on the labour sector wages, demographics etc. but the automation and digitization is all pervasive and by extension the impact on the skills required to respond to the labour market needs. 

It is estimated that 8-9% of 2030 labour will be in new types of occupations that have not existed before. Clearly there is a need to invest in relevant skills needed to transition to the new roles.  

India has a workforce of nearly 450 mn strong with nearly half a million people joining the workforce annually, it is the second-fastest digitizing economy after Indonesia, what are the likely areas of impact that we expect? How do we future proof ourselves against those changes? A quick peek at some of the key Industries. 

One of the sectors undergoing transformational change is the Information Technology & Information Technology Enabled Services.This industry is clearly seeing changes at both ends - reskilling as well as upskilling to match the growing requirements. We are witnessing requirements in the areas of Block Chain technology, Artificial Intelligence, Cybersecurity specialists, Robotics, CRM specialists to name a few. Many roles will be created in the AI space as it touches our lives through multiple products and services. 

Healthcare has become one of India’s largest sectors - both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. It will employ 7.5 mn people from a current level of less than 4 mn. A high priority sector for the Nation, the skill sets required to manage this growth are significant considering the massive expansion and the cutting edge technology on which the industry works.  

Retail is another sector where we are seeing robust growth rates, higher consumer expenditure and unprecedented technological interventions on the move. This along with Ed-tech remains one of the few sectors which has been hiring when the reports last came in! The Indian retail industry has emerged as one of the most dynamic and fast-paced industries. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. The market size is pegged at US$ 950 billion in 2018 at CAGR of 13 per cent. The online retail segment is growing at a fast clip of 31%. This sector thrives on online platforms, cloud-based solutions, GPS, AI driven algorithms to unravel why you and I buy what we buy! We are talking about large numbers of workforce and newer relevant skill sets here to sustain the sector growth.. 

On a concluding note - To prevent a worst-case scenario which is, Tech change accompanied by talent shortages, mass unemployment and growing inequality: Reskilling and Upskilling of today’s workforce will be critical. We cannot wait for the current school going generation to learn the requisite skills as they graduate, the current work force will have to be reskilled and upskilled. The writing is clearly on the wall, we need to adapt to the new skills at the same time reskilling and upskilling of the current workforce will need to move on a war footing…

This ongoing crisis of Covid19 is already taking many jobs beyond the possibility; part of it due to the crisis and part of it due to the unknown fear of financial and economic uncertainty. A business leader or an HR-Head is also a human being and will succumb to his/her memories and heuristics. So, some very talented candidates will also lose the job during this period, as it happened during 2008 US Subprime crisis.

But this time is not the time to sit and curse this challenge but this is the time to focus on your personal brand. As some talented people may lose job during this pandemic covid19 due to the fear of uncertainty, they will be picked up again much sooner than they can expect when economy picks up steam once again. They are just needed to stay focused on building their personal brand and communicating it to the target audience.

Many neuroscience researches says that human brain receives more than 11 million bit data but can process not more than 50 bit per second and that's why, many decisions are made even before blinking the eye. Robert Cialdiani, the bestselling author of “Influence” and “Pre-suation” has rightly said that we "pay" attention of something which is important to us because we trade it off with attention on something else which we don’t find important.

The first process of brand decision involves forming the representations of choice alternatives- that is, brand identification. This entails processing of incoming information, so that different options for choice are identified. At the same time, your customer needs to integrate the information on internal states (candidate requirement to fill the position) with external states (job description and requirements).

Humans are predominantly visual creatures and most of the information we receive is visual. Even if receive the information through other senses, we try to visualize the image of the product. Milosavljevic, Koch and Rangel in their research paper in 2011 had indicated that consumers can identify two different food brands and make their mind about which they prefer in as little as 313 milliseconds or roughly one third of a second. I am not saying that you are a food brand, but what’s wrong in becoming so desirable. Just think over it.

Recent studies in neuroscience indicate the four fundamentals of attention: 1) saliency filters or bottom up features 2) Top-down control 3) competitive visual selection; and 4) Working memory. First one is saliency filters or bottom up features, which means what you have in you to offer. Bottom up or saliency filters automatically select most important information from all the available information. So, if your elevator pitch, salient features of your personal brand is not fitting in with the memory and heuristics of your recruiter, then you will definitely not be picked up despite all your talent when they are in rush. Your cognitive load can’t hold too much of information at one time and so of your recruiter’s. Economy will start picking up the steam sooner than later. Human mind can’t stay in pain for too long; it will fight back to gain control over the situation. And when it will start picking up the steam, your recruiters will be in hurry to fill the position and then your bottom up information should be ready for them to pick you up among the crowd.

How can you do that:

1) Make of list of what you stand for

2) Make a list of your destinations

3) Connect the dots of what you stand for and what where are your destinations

4) Take help of your colleagues who can critically advise you

5) If possible, talk to your boss from either current or previous organizations and discus what you have prepared

6) Create a back story and start communicating it along with your check list on the regular basis with your target audience using social media, messaging apps, direct call and one to one meetings.

7) Another option will be to take help of manpower consultants and have been doing the work of profile creation and personal branding, because they have been working in the thick and thin of recruitment work.

One time final request; don’t waste your time on cursing the pandemic; it is what it is. When it will retreat, it will leave behind a fertile land, on which you can grow the tree of your successful life.

Lockdown due to the fear of community spread of COVID19 has brought in unprecedented situation and it has led to unprecedented buying behaviour. Some of the examples are from my family itself. I reached back my native village to attend some urgent work before the lockdown. Here I am, staying with my sixty five years old mother in the village for last five months and no, my life is not difficult except I have to manage my work according to the situation of electricity supply.

As the lockdown was imposed on 24th of March and became effective from 25th March morning so to say, because by 12 of the night of 24th March, half of the nation must have fallen asleep anyway. Movement of even essential items were difficult initially because law enforcing agencies were not able to figure out difference between essential and non-essential items and they were not ready to take any chance to be called negligent of their duty. So, the vegetables grown in rural areas were not finding its way to urban and town market. Prices of vegetables fell drastically and we were able to buy things at around 35-40% of the earlier price. Though lockdown was dampening news, but not for my mother, for whom travel meant walking in our campus or on the road in front of our house. She was very happy to buy vegetables so cheap and she started buying it from everyone and anyone selling vegetables and I was emotionally manipulated to gorge on vegetables much beyond my capacity, otherwise she would have been forced to throw a big portion of it in the dustbin. For first two months, despite my cautious advice and sometime angry retort, she continued buying vegetables in huge quantity, because it was cheap. Something which was supposedly cheap cost us a lot during that period.

My elder brother living in Bengaluru got so panicked when lockdown was announced that he assumed he won’t get any vegetables to eat. So, he bought a year’s quota of salt thinking that if he doesn’t get vegetables then he will eat chapatti with salt.

Few days back I was talking to a friend, who is heading staples business of major retail chain about the news around impact of COVID19. I told him that I not very comfortable with the way news about miseries due to COVID19 fed to the entire world after locking them inside their houses and flats. They are regularly and without fail being fed with the news of death, despair and conflict. I also said that there is news of biscuits companies are doing roaring business, which means tea business must also be doing similarly good business. Upon hearing this, he said not only biscuit and tea, but savouries, mixtures, noodles etc. are also doing very excellent business.

COVID19 is having whatever impact it is having on all of us and it is visible, but what is not visible is the impact of continuous fear feeding by media after locking us inside our houses on our mind. Hypertension, stress, blood pressure, gas and acidity, arthritis, diabetes and many other lifestyle diseases will start demanding its share from our savings once this is over or there is some respite.

Another friend of mine who is with a retail start-up told me that his neighbourhood store in Thane, Maharashtra, which was unaffected by spurt in organizations dealing in online grocery retail is seeing more than 60% de-growth in customer walk in; many of them have shifted to online shopping due to the fear of the spread of COVID19.

These examples are very few among many. How can we forget the sight of couple of kilometres long queue outside grocery stores in US and European countries or people stocking years quota of toilet paper.

This period has brought out the extremes of human behaviour unlike before. COVID19 is not going away soon. There are many government administered nudge which will change the human behaviour permanently. I am sure many neuroscientists and behavioural scientists must be studying it, but retail organizations must not let this opportunity go away and they must test as many hypotheses as possible and figure out the change in human behaviour and decision making process while shopping. Analysing data may not be able to speak much after this pandemic is over. Once it is over, people won’t be able to recall the entire journey; they will remember the peak and end of the experience. This will lead to loss of many data points which can help the business in future. EEG, fMRI, Mobile EEG and eye tracking devices etc. may come to help for in-store study and placement of products on mobile, laptop and other digital devices real estate, nudges, priming and anchoring stimulus applied should be closely and critically analysed, because this phase will bring out the human decision making process which will be new normal.

Though using tools mentioned above to study human behaviour is the domain of experts from neuroscience, but we can offer our services in setting parameters and calculating outcomes free of human bias.

I can be reached at mukul.bhartiya@reviewboard.in. You can find the detail presentation on Artificial Intelligence and Machine Learning in Retail Analytics here. Interactive Retail Analytics Solution

In the second part of winter of 1999, I went o buy a watch in one of the shops of South Extension in New Delhi. For a medium range budget, there were limited brand choices, probably only two (HMT and Titan), if I remember correctly. Decision to buy the watch was already made, budget was set, and brand choices were also not many to confuse me, so my top down control of decision making was all set. Only thing needed was the bottom up saliency filter of products to match my representation of expectations and gain my attention and assure me of matching my predicted value.

I entered the shop and my dorsal visual pathway started scanning the watches available on display and sending the messages to dorsolateral prefrontal cortex via primary visual cortex VI. My entire decision making and purchase process completed in less than five minutes. My decision making completely conformed to the research of Milosavljevic, Koch and Rangel (2011) which showed that consumers makes a purchase decision as quickly as within 313 milliseconds.

Shopkeeper told me that I am his first client to compete a purchase so quickly, otherwise other customers, especially woman sucks even last drop of blood from his brain while choosing and buying a watch. Not only that, even after taking so much time at the shop, on many occasions, they again return next day to replace the product. We had a laugh at this behavior. 

As my MBA completed and work experience started, especially in food retail and my interaction with my end customers increased manifold, I realized that my laugh back then was not only in bad taste but idiotic as well.

Woman makes most of the buying decision of any household and these decisions have to fit on four wheels of decision making cart:

1)Who uses

2)Who chooses

3)Who pays

4)Who benefits

If there is any imbalance in any of the wheal, the satisfaction level derived out of the purchase decision decreases drastically and creates bad shopping experience. It reminds me one of the buying decisions my mother made in my childhood. I was probably eight-nine years old then, youngest among three sons. My mother used to buy identical dresses for three of us. One day she had an idea that we three will look good in traditional white ‘payjama-kurta’ and she bought one set each for us. My mother was my favorite person, so I put that dress on sportingly. Middle one wore it grudgingly but the eldest one, who was in his early teen, threw the fit and decided not to wear it at all. Even few slaps on the face couldn’t convince him. 

Coming back to my decision to buy a watch and complete the buying process so quickly, If I lay my decision to buy the watch on this cart, then I find that I was the user, I was the chooser, I paid for it out of savings of my pocket money (it gave me the feeling of earning it) and I benefited from the features of watch. So, the satisfaction out of that decision was at peak. But I know there must have been gap in the level of satisfaction if I had to buy a watch for my sister because she may or may not have liked my decision with the same intensity as of mine. 

So, how to make a woman buy what you want her to buy? 

Decision making process of male and female brain is different. Both arrive at same result through different routes. Male brain, primarily driven by Testosterone, Vasopressin and Mullerian Inhibiting Substance is up for faster visuomotor scanning, faster physical reflexes, more risky behavior, aggressively defending the turf and restricting any woman like behavior. Female brain, primarily driven by Oxytocin, Estrogen and Prolactin is up for empathy, care, rapport, trust, bond etc. While male brain treats every issue as problem and jumps directly to find the solution, female brain starts evaluating the pros and cons of every action along with finding the solution. While male brain readily accepts the collateral outcome of its actions, female brain finds it difficult.  

Hundreds of hours observing customers walking in the stores and making buying decisions during my retail journey, I have figured out following points to be kept in mind before selling anything to female shoppers:

1)Establish rapport first and win trust: Opening pleasantries and a sincere effort to establish rapport and win trust works very well with female shoppers. . They like to put their trust in salesperson to give them honest opinion and step back. Any attempt to hard sell anything to them backfires. I remember one incident during my more. Retail days, when I was handling pulses category at national level. Before that, I was Category Manager of Staples for Mumbai zone. I was visiting stores in Mumbai to check pulses stock, pricing and promotion display and take customer feedback. In one of the store, I was talking to the store manager in the back office. Suddenly I heard a lady customer shouting at one of our CSA. I along with store manager rushed to scene. Upon asking, I was informed that the lady was sold a bag of rice which she found not of good quality. I immediately reached the ‘problem-solution mode’ and asked the lady about how she is cooking the rice because the bag she had purchased was of new crop. My question infuriated the lady even more and she blasted me with loud shout back, “I am cooking food for more years than your age, so don’t teach me how to cook”. I realized my mistake. I didn’t empathize with her by asking her about the problem, I didn’t ask her about the loss of faith and trust which she had bestowed on the CSA before making her purchase decision and I didn’t ask her about how she felt let down by making this decision which proved to be wrong. I calmed her down and assured her that I am with her in this process by making her believe that it not she but I along with my team are at fault. I took all the corrective actions then and there itself after aligning all the stakeholders, but this incident proved to be insightful to understand a customer.

2)Understand shopper’s world and objective behind purchase: While male shoppers come to the store with ‘their’ opinion in definite terms and they are mostly very clear about it, female shopper’s definition of ‘their’ is normally very broad. They try to make their decisions win-win for everyone assumed to be involved. So, after opening pleasantries and establishing the rapport, a little anchoring is required to understand the objective behind purchase and the people to be affected by their decision. 

3)Show alacrity in giving choices and eliminating least favored choices: Since a female shopper’s single decision leaves impact on many stakeholders, they need to be provided with choice. More implicit the objective of their purchase, more choices they would need and more time it will take. Though normally they wouldn’t like to be explicit in their demand and objective, but a quick zero down by the sales person is very necessary. If rapport is established, any change in behavior or opinion can quickly be analyzed and addressed. Though there may demand of more choices from them, neither their brain nor salesperson’s brain can handle this much amount of data. So, quick display of choices and even more quick elimination of least favorable choices become very crucial for successful closure of sales.

4)Appreciate their process of purchase: A little appreciation from the salesperson goes a long way in closing the sales successfully. Appreciation makes female shoppers believe that you are involved in their selection process and appreciate the effort they are making. This step evokes trust and faith in them towards you.  

I remember one incident, though not as a sales person. I went with my cousin sister to buy her a dress for a special occasion. She was to wear this dress to meet her to-be husband. We went to famous mall in NOIDA. As we enter the first shop, we saw a beautiful dress hanging in very front of the shop. She asked me whether it will look good on her. In a plain definite tone, I told her that dress is beautiful and will look good on her. She looked at me and said, “let’s try other stuff”. From one store to another, one dress to another, we spent more than four hours in that mall and nearby market. Tired and angry I sat on a bench in the mall and told her to select whichever dress she likes and once she makes her mind, call me to make the payment. In the end she chose the same dress which we had seen as first thing in the mall. After reaching home, I asked her if she had to buy this dress only, then why she made me walk for four hours. She replied, “you told me that dress is beautiful and it will look good on me but you didn’t tell me that it will look good on me for the very purpose I wanted to buy it. You were not with me there.” While my mind was focused on dress and whether it will look good on her not, I was not with her on the very purpose she was buying this dress for. I was not appreciative of the situation she was in.

5)Recognize and appreciate the decision: Recognition and appreciation of the decision they have made goes a long way winning their trust and making them your valued repeat customer. This is a very complex subject I attempted to write. 

Above mentioned points gave me success in category as generic as staples and I hope it can help others as well. There may be more points and I will appreciate the feedback.

First time I read any book on behavioural economics was “Thinking Fast and Slow” by Nobel award winning Psychologist Daniel Kanheman around six years back and I got blown over by it. Having spent better part of my life in food retail, understanding human behaviour through historical data collected through weekly or monthly sales was quite a task, because the element of biases, heuristics, noise etc. are something I had just assumptions but no authoritarial backing. Many a times, standing on the floor of the store, I could sense the consumer behaviour but could not call it a behavioural pattern of financial decision making due to not being exposed to psychology part of human decision making. Nature of the job was to achieve the sales numbers, so academic aspect of conclusions coming from data never became a topic of discussion among peers and colleagues.

As my curiosity increased in this subject, I pursued many online courses available across different platforms and read many books on it along with neuroeconomics, neuromarketing and neuro-consumer Science. In this pursuit, I recently found a book “Misbehaving: The Making of Behavioural Economics”, written by Richard H. Thaler and published in 2015. Mr. Thaler is known as father of Behavioural Economics and won Nobel Prize for Economics in 2017.

This books describes his journey of exploring, experimenting, understanding, consolidating and presenting the role of different human behaviour behind economic decision making more famously known as “biases and heuristics”, the names given by famous Daniel Kanheman and Amos Tversky.

Written in eight blocks (Beginnings, Mental Accounting, Self-Control, Interlude, Working with Danny, Engaging with the Economics Profession, Finance, Welcome to Chicago, Helping Out) divided in thirty three chapters, this book is a revealation of a completely new dynamics of human financial decision making and revelation to read for anyone who is even not conversant with the idea of either psychology or economics.

From Endowment Effect to The List to Value Theory to The Gauntlet to Bargains and Rip-Offs to Sunk Cost to Buckets and Budgets to The Willpower to The Planner and The Doer to Misbehaving in the Real World to What Seems Fair to Fairness games to end with Save Money Tomorrow, Going Public and Nudging in U.K, this book is the journey of Behavioural Economics with the father of very concept himself.

I simply love the concept of “Endowment Effect”. We overvalue what we have regardless to what is its market value. If we are asked to pay surcharge to facilitate credit card transaction cost, we frown over that, but if that surcharge is included in the product cost, we don’t mind because that’s not obvious to us. While two are one and the same thing, but not getting discount is just a lost opportunity cost for the consumers while paying extra for credit card transaction looks like direct cost. This is not only true for the economic decisions but for ideological view points as well. People value their opinion more over others and they go out in public just to confirm their opinion. “Endowment Effect” coupled with “confirmation bias” becomes “myside bias”, the reason behind big ideological divides.

Mental accounting is another topic which I find fascinating. Recently I bought a laptop for Rs.39.450/- for multitasking of a little lesser known brand. I got a Rs.1500/- instant discount due the tie-up between my credit card issuing bank and seller. Few days later, another Rs.1250/- cash back was credited to my wallet. Along with the features, company offered two years service warranty as against of one year given by other known brands and I got one year Microsoft 365 subscription free as well. I had done good two weeks research before buying the laptop and had seen umpteen videos and read thousands of reviews of different brands before making this decision. Laptop of known brands with similar features and warranty were at more than Rs.65,000/-. So when I made this decision, got this product, set up my device and Microsoft account, I found it very smooth in operation. It proved to be great bargain for me. After that whomsoever I told about the purchase, I not only explained the discount and cash back, but also the cost of one year Microsoft 365 Subscription, cost of 1 TB storage on cloud, and cost of one extra years’ warranty. Before that, I was against the idea of having cloud storage space, because I not only found it costly but leaving the responsibility of my data on someone else. Hard Drive Storage meant complete control over my data to me. But after getting it along with Few days back, I had almost made the decision to buy a laptop for Rs.61,000/- with the same features but somehow I ended up not buying it. So, my satisfaction level from making the purchase decision which I made is like absolute bargain.

This book is full of real life experiments and examples and is a must read for everyone who wants to know the science behind financial decision making.

You can buy the book following this link Misbehaving: The Making of Behavioural Economics