Inefficiencies in fragmented markets.

EcoDig

I have noticed a few peculiar things about the commercial environment in India. No doubt it is extremely competitive and highly volatile but there is something that I don’t seem to understand.

I am sure you must have seen several places in India where a million people sell just one type of good. What do you think is common between them? Yes of course, the damn goods. And guess what, all those goods are most likely coming from a single place where a thousand people actually manufacture those goods in a very similar fashion using the same technology which is indeed coming from about a hundred people making that same machinery in an exactly similar way. Now the funny part here is that this practice has been going on since several decades now and in most of the cases there has been no up-gradation whatsoever.

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