Market of Jugaad

Researchers love it, administrators hate it. Some call it the parallel economy. Others refer to it as the unorganized market. But my most preferred definition is the ‘market of jugaad’. True to the spirit of ‘survival of the fittest’ theory, the system or the lack of it has been around for long. And in order to prove its worth, it has not just survived, but has thrived.

My objective here is not to rationalize or judge the existence of this phenomena, on either the socio-economic parameters nor on moral-ethical grounds. I am just presenting the observations and amazement of an outsider.

I recently accompanied a friend to a car-repair shop. A prior appointment was taken, all stakeholders were informed and the date, time & venue were fixed. For me the visit was like attending a refresher course in business management, all in the span of a couple of hours.

We were asked to park our vehicle in a public parking slot. This was totally different from the authorized automobile service stations I visited in past. After a few phone calls and follow-up calls, the representative of the ‘market of jugaad’ came and met us. He parked his well-maintained motor-bike and walked towards us with a smile. He was dressed neatly in imitation clothes (like imitation jewelry) with logos of well-known brands. Over next few hours we realized that this man, who has taken minimal formal education, is actually a master of his trade.

Offered cost effective solutions

He examined the vehicle. One of things required was a change in the headlight. The outer cover had become almost opaque over the years and thus needed a change. While the customer was willing to invest in a new set, our SME (subject matter expert) refused. He removed the cover and gave it to his junior for a thorough clean-up. Needless to say we saved a few grands all thanks to a detergent and a brush.

Knew the product well

Over the next few hours, our SME examined and corrected all parts of the vehicle. From seat-covers to stereos, from engine parts to wheel-alignment, he knew everything about everything. At times I wondered if a trained automobile engineer knew his products so well.

Excellent marketing skills

While he saved our money on one side, he suggested multiple other changes. From small upgrades to necessary replacements. He sold and we bought.

Strong network with peripherals

Our protagonist maintained a healthy inventory of goods and supplies. Whatever missing could be easily procured from neighboring shops. Even the parking lot where we were parked, was a part of this syndicate, providing a work-space.

Customer relationship management

I have already talked of our protagonist’s marketing skills. He was adept in customer relationship management as well. He learnt that one of us wanted to move out for some time. On hearing this he promptly offered his own motorbike. This was nowhere a part of his job description, but certainly helped in raising our ‘customer satisfaction levels’.

Apprenticeship

They say one should start early if one wants to travel far. The perfect example was the young assistant of our SME. This young guy, maybe in his mid-teens, was undergoing his ‘on-the-job-training’. His assignment of the day was to clean the car headlights. And I must mention, he did it with complete sincerity. However the inexperience showed when the corner of the glass chipped off.

Focus on profitability

At the end of it all it was time for us to leave. The vehicle had undergone a few changes, some planned, some unplanned. Our protagonist promptly showed us the printed price of each spare part used. And added his labor charge. He even gave us a discount on the overall purchase. Even though we knew he had earned more than his labor charge, we didn’t object.

As we drove back, I couldn’t stop myself from wondering. Basics of business management are simple and easy to understand. They were demonstrated well by this man, whose name will never get published in any business magazine or training certificate. Yet, in our large corporate world, many of us struggle to figure out these principles from behind the guides of work cultures and processes.