Nayi Disha for India with Dhan Vapasi

In the post-Covid world, India is going to go through difficult times – like most other nations. The pandemic is stretching health systems, and also forcing lockdowns which are creating a parallel economic pandemic. The longer the lockdowns go on, the greater will be the damage. Like the coronavirus curve, the economic stress curve will also rise exponentially with each passing day. Flattening this curve and getting growth going again will prove more challenging.

The current period between the pre-Covid world and the post-Covid world gives us time to think and imagine the future. What should India do? How can India rise? Can we use this crisis to give India a Nayi Disha (new direction) – one which takes us on an irreversible forward path towards freedom and prosperity because the two are inextricable intertwined.

During 2017-2018, I had tried to create a movement for prosperity. You can read my writings and see my videos, with more details at the Nayi Disha and Dhan Vapasi websites.The Nayi Disha manifesto encapsulates my thinking.

While I failed then to even make a dent, I think the ideas are even more important now. The temptation for India’s leaders will be to print a lot of money, give it to people and run huge deficits to try and save the economy. This will take us in the opposite direction to both freedom and prosperity.

Instead, there is an alternate path – one which can truly transform our future. This involves combining public asset monetisation with returning the wealth generated back to the people. This is perhaps the only approach that will create lasting prosperity in the shortest possible period for the maximum number of Indians. I will show the what, why and how in future blog posts.

Knowledge@Wharton Interview

Mukul Pandya had interviewed me in Jan when I was at Wharton. In it, I spoke about the future of marketing (omni-channel personalisation, focus on best customers, maximising customer lifetime value), Netcore’s roadmap, the “profi-corn” mindset to build companies, and what India needs to do to counter the current slowdown (which will get worse after Covid-19). All of these are themes I will explore in my future writings. A few excerpts from my interview:

  • What should be the goal of marketing? What would I as a CMO love to do? I’d love to maximize the lifetime value of my customers, which means I need to identify from my current set, from my current cohort, who are my best customers. How can I get them to spend more? How can I engage with them more? Earlier, it was very difficult to do this. Every person was treated pretty much the same. The next question is: What are the characteristics of my best customers? How can I go out and acquire more such customers? A marketer now has the ability to almost craft the perfect company, the perfect organization, with a customer base of the best customers.
  • Twenty percent of your customers account for 200% of your profits, which means there are probably a lot of customers who are actually causing you to lose money. That may not matter today, but at some point in time it will. Companies will start realizing that all customers are not equal and that they need to start analyzing their segments and figure out which customers they should go after. Which are the types of customers they need to attract and engage?
  • Identify and engage with your best customers. That is the differentiated proposition that a company can create. That is the way to create valuation for their own businesses and incredible value for customers via omni-channel personalization. You can’t deliver that to every customer of yours. So focus on your best customers and give them omni-channel personalization.
  • ….how we’ve architected the company…the word I like to use is “profi-corn.” Many of the unicorns have been burning a lot of cash. I felt we needed something new, a new way to build companies, the way we have built Netcore over the last 20 years.
  • A profi-corn has four characteristics. It’s profitable. It is private. It’s bootstrapped — there is no external capital, which ensures that the focus is on employees and customers, and not investors. And it has a baseline valuation — let’s say $100 million. Unicorns have a billion-dollar valuation, but the founding team is probably left with less than 10% of it. So if it’s $100 million (for profi-corns), and the founding team and the employees own 100%, it’s almost the same thing.
  • About a year-and-a-half ago, I put together an idea called Dhan Vapasi, which means wealth return. This is perhaps the most powerful idea to counter what we are seeing in India.
  • Our idea was that you can start monetizing all these assets…bring out all the idle land or idle assets into circulation. As we start generating money from these assets, the idea should be to return it to the people. This is the people’s wealth. The government only controls these assets. It’s the people who are the owners. To counter the slowdown on the demand side, our proposal was that every Indian family can be given back Rs. 100,000 (approximately $1,400) every year. This effectively doubles the median income of a family in India. As they start spending, it starts the virtual cycle of consumption, manufacturing and job creation. I think if the government can do this it will put Indians on an irreversible path to prosperity. Do it for 10, 20, 30 years — that’s the kind of wealth which is locked up in India. That’s how you can replicate the Chinese success. You can pull out a few hundred million people from poverty in the next 10 years.