Direct Marketing expected to explode in India

Here are some projected figures for India DM growth

* These figures are derived from several different sources and economic surveys.



Click here to view full table

* retail is set for exponential growth

For more information on international data and analytical solutions, contact me at doug@focus-worldwide.com

Cultural Differences are a Major Obstacle for Global Business

A linked-in message from a friend in Singapore alerted me to an interesting website.

http://www.geert-hofstede.com/

Professor Geert Hofstede, author of Cultures Consequences, has identified five "cultural dimensions."
At this website one can click on a country to see how the five dimensions influence that country's culture which may help develop a better understanding as to what one may expect when doing business there.
As Professor Hofstede says, "" Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster."

Power Distance Index (PDI) suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'.

Individualism (IDV) On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty.

Masculinity (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. The women in feminine countries have the same modest, caring values as the men; in the masculine countries they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values.

Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity; it indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth;

Long-Term Orientation (LTO) Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, however, the dimension also applies to countries without a Confucian heritage.

Plain & Simple

The trend in most forms of writing, political speeches and even business-speak has become laughably wordy and confusing.

For direct marketing copy this holds an added danger. If the intention is to confuse, then we have another credibility problem in the industry. Take a look at a dozen or so direct mail offers and see if they are written in plain English or in “direct marketing-ese.” And I don’t just mean the credit card, bank and insurance offers which are so full of small print and legalese that the reader needs a degree from the Wharton School to decipher them. I mean take a look at the basic direct mail offers. The ones that should be…. well…. direct.

Many seem to lack what was once the art of what we called “Plain Speaking.” Once we praised our politicians, like Harry Truman, for plain speaking. Now, with the lengthy recession and wars, endless political and celebrity scandals and just plain bad behavior we witness every day, I predict that, at least subliminally we are longing for more Harry Trumans. Or Teddy Roosevelts who said speak softly and carry a big stick! Direct marketers may be wise to tap into this undercurrent and use it to their advantage. Speak plainly. Speak softly. The big stick they carry can simply be a fair offer, explained in plain English which allows the consumer to decide if it has value. Plain and simple. Perhaps this is a trend direct marketers can champion and with any luck it will be embraced by every aspect of society.

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For more information on international data and analytical solutions, contact me at doug@focus-worldwide.com.

Circle The Wagons

This month's column looks at two threats to society and business-protectionism and rude behavior.

A bad economy often leads to renewed protectionist legislation regarding tariffs, duties, import restrictions. This is happening not just in the U.S. but around the world. Here, the "Buy American" program is hurting those companies it was intended to help as many component parts are manufactured or assembled in Canada and Mexico for finished goods with the made in USA label. How this plays out would be amusing if it weren't so serious. Again, those who enact the laws have no idea what the repercussions will be nor do they understand commerce in general.

Rude beahvior is making headlines in the U.S. Is it a national epidemic or a global pandemic? Is there a cure? And will it affect how marketers work and are perceived?

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Thought Of The Week

New German Privacy Law in Effect Sept. 1, 2009

Thanks go to Stephan Merz of www.d-2m.de for supplying this update.

There will be a change from opt-out to opt-in for the receipt of postal mailings and the use of postal addresses. For this significant change the government is allowing a transition period of 3 years for data collected before September 1, 2009 and not changed since. But as from September 2012 on there will be a full need for opt-in.

The new law lists 5 exceptions for non-sensitive data for advertising purposes:

1. Addresses can still be used for advertising for own purposes by the data owner. Mailings to a company's own customers for similar offers are still allowed without opt-in.

2. B2B advertising. This covers general business addresses and business addresses with a named decision maker. Mailings must be for business purposes.

3. Advertising for charities and non-profit organizations.

4. When a mailer states the (original) data source on the mail-piece and can document the delivery chain. Not with a code, but as clear information (e.g. this address was obtained from "name and address of the mailer). The information must be stored for 2 years by the list owner and the user! This includes the permission to use lists from list brokers within the so-called lettershop method.

5. When the address owner can be clearly identified. This is the case for so-called recommendation mailings or for package inserts, catalog inserts and other similar insert options.

This is a significant change from the previous law yet not the drastic and draconian version of the new law that was expected a year ago. But it impacts the German DM industry with “legal uncertainty” now, as the new law is set up quite generally and intentionally leaves room for interpretation. We also expect some companies will be taking their files off of the list rental market.

For more information on this, international marketing logistics, regulations, market entry strategies, please contact doug@focus-worldwide.com.

Thought Of The Week

Best Laid Plans

Last week we looked at the growing trend of protectionism that many countries are practicing now or are contemplating by either increasing tariffs on foreign-made goods or restricting their use entirely. Here in the U.S. we are witnessing an object lesson that shows that it is much easier to think up and enact protectionist legislation than it is to deal with the consequences. Consequences the lawmakers don’t have the expertise to consider or even imagine.

In February 2009, the U.S. Congress, as part of its Economic Stimulus Program, imposed "Buy American" provisions which bar projects from receiving federal money that buy goods or materials from abroad. The theory is that this will help U.S. businesses. In reality it has created a distributional and logistical nightmare and now has the U.S. in a polite and relatively minor dispute with our largest trading partner and very good neighbor to the North-Canada. Many products in a variety of the industries use dozens of components. Many of these are manufactured in Canada. So a company using or manufacturing products or systems that have one or two Canadian-made parts may lose or be disqualified from receiving federal contracts due to the Buy American program. Also, many products, in the process of being finished have components passing back and forth across our border with Canada. So how is it calculated if these are Made in the USA or not? Many U.S. companies are saying their businesses are suffering huge potential losses (of contracts) due to the Buy American program. They cannot change the complex and highly integrated supply chain systems already in place with Canada. This could affect over 4 billion dollars worth of business in the water and wastewater systems industries alone.

Plus these types of sanctions always provoke retaliatory measures. China has announced it will curb imports of chicken and auto parts to combat the tire tariff. President Obama and Canadian Prime Minister Harper have to sit down and work through such important issues as charter flights for sports teams. If you are a hockey or baseball fan, this is serious business.

For more information on this, international marketing logistics, regulations, market entry strategies, please contact doug@focus-worldwide.com.

Thought Of The Week

Market Alert: Protectionism on the Rise.

International marketers need to watch the current trend of protectionist tariffs that are increasing around the world and coming to a head just before the Group of 20Summit in Pittsburgh, September 24-25.

While no one disputes the need for global expansion and the tremendous lift and leverage it can give any company’s bottom line, trend-spotting and the proper strategic positioning that responds to these trends are critical.

The major headline here has been the tariff the U.S. government is placing upon Chinese automobile tires and China’s reaction of taking this issue before the WTO. The proposed tariff increase of 25%-35% could price out of the market 17% of all tires sold in the U.S. China says this could affect 100,000 Chinese jobs. The price of rubber on world commodity markets and share prices in certain tire companies has already been affected.

U.S. companies are coming under increasing pressure from their unions and labor forces to stem the flow of products flooding into the market from China and elsewhere. The U.S. government meanwhile is walking a tightrope as the Chinese and U.S. economies are so tightly intertwined now. China will be watching very carefully how the Obama Administration reacts as this could set the tone for the remainder of Obama's term.

It may be a hackneyed phrase but “tip of the iceberg” seems appropriate when looking at the global protectionist trend. There is much more to follow. GTA’s research indicates over 100 protectionist measures are due to be implemented around the world. Countries being targeted the most by these measures are China, U.S., Japan, Germany and France. The leading industries seeking protection are machinery, food, financial services, and agricultural goods.

If your products/services may be affected by this, it is time to pay close attention.

For more information on this, international marketing logistics, regulations, market entry strategies, please contact doug@focus-worldwide.com.