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> Indian market is much more price sensitive That’s an odd way to say India is way poorer, and there’s no way the avg Indian can afford to pay a US price for N
by yunohn 6y ago
> Indian market is much more price sensitive
That’s an odd way to say India is way poorer, and there’s no way the avg Indian can afford to pay a US price for Netflix. People being price sensitive is only an additive effect on top of that.
(India => any developing country)
- alex_smart 6y agoIt might sound an odd way to phrase things, but it was both more fine-grained and more meaningful than your rephrasing. The average Indian earns less than 4 dollars a day. The average Indian still buys their shampoo in little 5ml sachets that cost 2cents because they can't afford the full bottle even though buying the full bottle would be cheaper in the long run. So, the average Indian definitely can't afford to pay the Indian price for Netflix either. The average Indian is not the target market of Netflix or of any Internet business. All the talk of India being a market of a billion users is nonsense. Only the top 5 percent, maybe 10, of people in India have the disposable income for them to be a potential target customer for most businesses. For all intents and purposes, India is a market of ~50-100 million customers. When I say that the Indian market is much more price sensitive, I am talking about this group of people, not the average Indian. The reason Netflix is priced half of what it is in the US is because this group of people are willing to pay that much for Netflix. The average Indian is simply not a relevant concern.
- kbelder 6y agoI wonder how that compares to the financial demographics of China? I had the impression they were bringing more citizens up into the lower-middle class, but I might have just uncritically accepted some spin.
- alex_smart 5y agoChina's per capita GDP is over 10,000 USD. Their middle class is already huge. I think a decent analogy is that Chinese market is approximately the size of USA and India's is approximately the size of Canada.
- kryptozinc 6y agoIt is not just about being "poorer", people in developing countries are indeed more price sensitive about technology services. They do not perceive the "value" of the product same as the west does.