Abstract

IT Software Created Southern India's "Golden Triangle"

The development of the ICT industry has helped to stimulate the economy in Southern India and improved incomes of local people. The "Golden Triangle" formed by Chennai, Bangalore and Hyderabad has attracted many businesses to its industrial parks. These businesses and the people who work in these industrial parks are instrumental in driving the growth of the electronics market in Southern India.

Generally, the main electronics markets in Southern India are in Tamil Nadu (Chennai), Karnataka (Bangalore) and Hyderabad.

The Polarized Southern Indian Electronics Market: Inside and Outside of the Industrial Parks

Consumers Inside the Industrial Parks

Consumers who work inside the Southern Indian industrial parks - particularly those in major technology cities like Chennai, Bangalore and Hyderabad - have begun paying attention to functionality and style of electronics products as they enjoy higher incomes. Vendors can target these middle and upper class Indian consumers by launching mid-range and high-end products then selling them at brand outlets or franchise stores in the new residential areas or department stores near the parks.

For corporate customers who are tenants of the industrial parks, vendors may boost their efforts with local system integrators or establish a presence in specialized electronics commercial districts to capture the corporate market for IT.

Consumers Outside of the Industrial Parks

A sizeable gap exists between ordinary families in Southern India and those who work in the industrial parks. Consumer demand of people outside of the industrial parks for electronics is therefore still for low-priced goods. In terms of product type, small- and medium-sized CRT televisions as well as cheap mobile phones with limited features offer the best potential. Instead of the channel strategy for customers inside the industrial parks, vendors may want to consider holding product displays in traditional commercial districts (such as the local market). They can also try to increase the exposure of their products in retail stores throughout Southern India's main cities to capture the business opportunities in the value-line market segment.

Appendix

List of Companies