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In one meeting with a TV giant that had better remain nameless, I asked them why, when they've ruled the Indian market for so many years, they had not managed to become the Sony of India? Total silence. Even though they have a full design studio (doing reasonably good work), their products don't differ much from other international players who are putting all their financial and design might into eating the Indian pie.
Once these companies understand that they have to innovate, they don't seem ready to take the riskier step of continuing to do so. It will take another round of mediocrity and failure before they understand that engaging with higher paradigms of design is not optional. These companies have the potential to become shining icons of Indian design, but they need a visionary leader to take them there.
The fifth category is the most recent—multinationals wanting to localize innovation for the Indian market. This one comes courtesy of the booming Indian economy and signals foreign awareness of the end of the Indian consumer's love affair with foreign products.
Once upon a time, everything with an overseas label sold well. For years, foreign companies operating in India considered Indian consumers "Third World" residents who would be happy with any foreign label, and who didn't have an idea of ergonomics, style, or evolved taste.
Products that had proved unfashionable elsewhere were introduced in India, but then the Indian consumer began to catch on. Traditional segmentation and economic capacity-based studies don't wash any more. Gone are the days when Indian consumers would buy whatever was presented to them.
With many choices and plenty of information on what is available—and what constitutes world-class quality—consumers know what they are looking for. So now companies planning for a longish stay in India are seeking more local insights into the minds of their users.
One of the companies we are working with is Volkswagen, which is using a mix of market statistics, ethnographic research, and trend research to understand the dynamics of the Indian mind. They still have design studios far away from Indian soil, but there is a sign of increasing Indian involvement in their innovation process—at last.
The last category is the large public sector companies, hitherto untouched by "design." They are the legacy of pre-liberalized India and still enjoy huge support from the government in terms of money and policies.
Design here is a not a mandate. Usually it is forced by competition—one of the senior managers decides to try it out. The problem they face is that it can take a long time before the power of design is truly understood by all tiers of a hierarchy. So they continue to struggle with good design, bad design, and no design all lumped together. But these companies are becoming bigger beacons of design. They are ready to experiment.
So where does it go from here? Well, the Indian economy is booming. Consumers are showing signs of becoming discerning mature buyers and users. Companies are ready to spend money and take risks. The government even declared a National Design Policy (though the effect on the ground will take a long time to become visible) (see BusinessWeek.com, 2/14/07, "India's Designs on Innovation").
New design schools are opening every year (there are more than a dozen now). Design companies are getting their acts together to attract investors and grow (WPP invested in Bangalore-based Ray+Keshvan, Tessaract became Idiom with the help of Future Group, Onio got angel investment.)
Internationally acclaimed design houses like IDEO are on the prowl for their piece of India. Even the Italian government has seen the opportunity and is promoting the Italian design industry heavily on Indian soil. All of this points to an exciting road ahead for design in India.
There are hurdles for sure: the lack of a trained intermediate layer (design engineers and design managers) or a governing body for design practice, the lack of skilled supporting resources such as model-makers and prototyping companies, and above all, the lack of trained designers in the country may slow the big boom of innovation that can transform India. But it's coming.
Manoj Kothari is founder, director, and senior design strategist of Pune-based industrial design and branding firm Onio Design.