Archive for October 5th, 2012

Garam Masala Mix

Even after a thousand or more years of trade, Indian garam masala remains exotic and out of reach for parts of Central and Eastern Europe. What comes from India still has its allure and aroma and it becomes more valuable if its hand delivered. Hence, I had an additional bag full of chai and garam masala and some silk fabrics on my back from Delhi to Budapest. I felt more like a modern silk route trader than an economist.

The strong essence of coriander with red pepper steeped out of the multi layered plastic bags making things more tricky, worrying me about the fellow passenger and what if he requested a change of seat. Fortunately nothing like that happened. Rather the German tourist guided me about the journey ahead navigating on his IPhone and turned out to be an India curry lover. It just dawned on me that we were in the new age of consumption. Consumption connected with novelty, whether it was taste, technology, and look or simply something just branded “new”.

The new consumption is more small ticket consumption or should “feel” like small ticket consumption. You don’t pay for the IPhone upfront but as a part of a small fee over years from the provider. This new consumption was also linked to something instant, like food or clothes or social network consumption, where we consume internet band width for instant pleasure of sharing or connecting with friends. This consumption trend drives businesses valuing together more than a trillion dollar. Apple is a technology company with products which seem like small ticket consumption.

You can read the complete article in Business Standard

Mukul Pal, is a Chartered Market Technician, MBA Finance and a member of the reputed Market Technicians Association (MTA). He has more than a decade of Capital Market experience dealing with derivatives and global assets. He has worked for Bombay Stock  Exchange, multinational Banks and brokerage houses in leading research positions before starting on his own in 2005. He is the President of the MTA Central and Eastern European Chapter.