Bangalore the Ideas City

Rodin In Cubbon Park

By Harish Bijoor

I live in Bangalore. I love Bangalore. But that’s not why I am saying what I am going to say right now.

I do believe, if New Delhi is the political capital of India, Mumbai the commercial and Kolkata the ‘kultural’, Bangalore is indeed the Intellectual capital of India.   We are a city of ideas. A city of thinking people who think the past with equal aplomb as we think the present and the future.

While most cities today are very besotted with the present, we straddle every aspect of the past, present and the future, in our own true-blue Bangalorean way. Never mind the fact that we live treadmill lives, like everyone in the bog cities does, but we get off at times as well. And that’s the time we think. And sometimes act.

Bangalore today is all of 87 lakh people living cheek to jowl with people from 25 different Indian states and some 39 nationalities that have made Bangalore India’s biggest expatriate island. Bangalore is therefore a true-blue amalgam city of sorts. We are the melting pot city in India, if there ever is to be one, where different cultures, tastes, and most importantly ideas mix, rub shoulders and blend. This then is an ideas-laboratory of sorts. A place where new things are thought out. A few ideas flourish and most die of course. In many ways an idea is a sperm. It lives like one and dies like one as well. Very few germinate.

Bangalore today is really an ideas city. It has been one for a while now. Only thing is we have not noticed enough of it, and not made enough of it as well. This is an innovative city. Innovative at every level. A city of entrepreneurs as well. A lot of credit for this entrepreneurship streak needs to be given to the lakhs of new settlers we have welcomed into this city from every part of India and the world at large.

Let’s first credit every land entrepreneur who came in from Andhra and indeed the immediate neighboring states around us. Lets credit every retailer, whether it be in the space of grocery ‘kirana’ or gold retail, many of whom came in from Kerala and again our very immediate neighbor states. I can go on listing out terrains that cover technology, ITES, IT-end to end services, Biotech, manufacturing, pharma and literally every other idea vertical that has made this city what it is. A city of ideas. A city that has encouraged idea start-ups from the realm of the humble Momo-cart to high end embedded systems that run nations and their many programs.

The basic DNA of this city, from the bottom end of the corner 'kirana' grocer to the top-end of the IT-preneur is a city that is led and bled by ideas.  Look around, and it is not difficult to spot an ‘ideapreneur’ on the prowl. This guy has been welcomed into the fold of this very accommodative city. Never mind where you are from, all are welcome. There is no jingoism here. If your idea is good, you will survive here. And thrive.

The ideas that run here are both small and big. Decades ago we started with Pub-entrepreneurships. The theme pub started in Bangalore really. A space pub called NASA, a car pub called Black Cadillac, and 485 other variants happened here. The food revolution is a reality in Bangalore today. Every food-entrepreneurship is an idea whose time has come. Koramangala today boasts of the highest density of restaurants per square kilometer in India for sure, with its 458 offerings. The Café started in Bangalore with VG Siddhartha’s Café Coffee Day, and now we have 2950 of them belonging to a myriad set of brands all over India. The IT end-to-end services enterprises happened here and sprouted, just as did the BPO outfits that litter our lives, From bottom end to top-end, this is surely an ideas city.

One downside though. The idea sperms are many, but few meet and mate the money that is needed to ramp up the humble idea. One wonders where the moneybags are burying their moneys. Let’s dig.

In a way, if I were to look for an image icon that would represent Bangalore for what it is, it would not be the Vidhana Soudha, which we use so profusely. Neither would it be the visual of the “Namma Metro”.

Instead, I would land up right in Paris, run into the Musee Rodin and fly out Auguste Rodin’s “The Thinker” and plant it out here right outside Cubbon Park! Sorry Parisians! This is the spanking new thinking city of the spanking new world. Bangalore!

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Harish Bijoor is a Brand-strategy specialist & CEO, Harish Bijoor Consults Inc.

Twitter @harishbijoor

Email: harishbijoor@hotmail.com

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The Bangalore Real-estate market

5 Reasons I am positive about India and Bangalore

By Harish Bijoor

The real-estate market of any city is a sub-set of the environment in the State it belongs to. And that is a sub-set of the country and its many policies, progressive or otherwise. Add to it the fact that the world is for sure a connected place today, and therefore there is a bigger environment that governs real-estate prices and practice, and that is the environment across the world at large.

Real estate is however all about geography that is real. It is about physical spaces that are about land, buildings, gated communities and more. To that extent, it is a physicality. A physicality that is very dependent more on the local than the global. To that extent, while the stock market of a country is all about being umbilically linked to the sneezes and joys of the world at large, the physical real-estate market is that much more local than global. And thankfully so.

In the world of real-estate, the further you move away in concentric circles from the local to the global, factors that affect the price point of real-estate get that much more insulated from the factors that surround. To that extent, the point I am making is a simple one. When you look at real estate, don’t fret and fume as to what is happening in Greece. Don’t worry that Nicolas Sarkozy has been replaced by Francois Hollande. Just don’t worry that you will not see Carla-Bruni Sarkozy that much in the news anymore. Just worry more about factors that are immediate and adjunct to the area of your investment. If you are planning an investment in Bangalore, worry more about what is happening to the governance structure in the real estate market, worry about jobs in the eco-system that throws up investors in the Bangalore real-estate market, worry about laws and rules that are in force and ones that will be enforced later than sooner. But worry about nothing more than that.

5 reasons why I am excited about Bangalore and India then, in that order:

1.     The aggressively young population

Bangalore boasts of a young population. While 54% of the population of the country is below the age of 25, Bangalore boasts of 63.6% below the age of 25.  A younger city means a hungry city. A city hungry for achievement, hungry for jobs, and most certainly hungry enough to invest in land and more. This young profile of the city is un-enviable. The only other city that comes close is Pune on this count. Young cities are hungry cities and hungry cities are investment friendly cities.

The downside of a young city is the fact that pressures to perform abound that much more in younger cities. Younger cities are high-tensile cities. No wonder then that Bangalore and Pune have emerged to be the suicide capitals of India as well. Sad fact.

2.     Spends and patterns of splurge in the TOP and MOP

The second reason why cities such as Bangalore are exciting places for the real-estate market for first buys, re-sales and repeat buys, is the fact that the splurge quotient of cities such as Bangalore is very high. The city is a polemical factoid. While Bangalore boasts of  10,600  Dollar millionaires at one end, at the other end, it also hosts large populaces of those living on the fringe of a hand-to-mouth existence. The real-estate market, sadly, depends on what the Top-of-pyramid (TOP) and Middle-of-pyramid (MOP) folk have to contribute to the kitty.

When you look at the spend patterns of the TOP and MOP profile, one witnesses no gloom at all. The splurge quotient is high on products and services alike. Super-market carts are still laden full with products that do not necessarily represent the best value-buys. The number of spas in Bangalore has grown from a measly 6 in 2001 to 121 in 2012. The number of beauty parlors has grown from a mere 107 in 2001 to 1220 in 2012. I do not have a comparative number for restaurants, but if you just look around, you don’t need numbers to tell you the story.

And every one of them is raking in the ‘moolah’. The point is a simple one. Never mind the fact that Greece is in trouble. Never mind that Europe is in shambles. Never mind that the Japanese economy is slated to de-grow at 0.6% p.a, in GDP terms. Just never mind. Look around and you will sniff prosperity and spends in your local TOP and MOP markets. Sadly or happily, the real estate market depends on its future on this market.

3.     The eastern investment mindset, and the shift from metal to land

This is a quick and happy one. Indians at large are very highly investment geared and investment oriented. The old mindset of investment was gold. This has held families in good stead over the years, particularly with gold prices ruling at an all time high as of today. This investment mindset has gradually shifted in the country from gold to land and dwelling units. The first things everyone wants to do, even before buying a Life cover in an Insurance policy, is to own a house or a piece of land. This has spurred and will continue to spur demand. Real-estate investment apathy has not set in as yet. It looks far way for now.

4.     The poised Next-gen ahead

The next generation is a very highly educated generation. Parents of the current generation have spent their lives working hard to educate their children and get them the best in terms of a qualification to earn more than they have earned. This is a good sign for the economy at large. This means the children of tomorrow will earn higher multiples than their parents did, net of inflation. This means there will be more money to invest. This is a trend that is quite unlike what we see in markets of the United States, where new generations are lesser equipped at large in terms of qualification and earning potential.

5.     Bangalore as a magnet city

The city despite all the ills we bemoan, is still a magnet city. We host mixed nationalities. We remain a secular city with secular intent. We are largely peaceful. We seldom fight. We might watch porn in the assembly, we might huddle our MLAs time and again in close-by resorts, we might clamor for free IPL tickets, but essentially we are a nice people living in a nice city. The city will still remain a magnet city. And that’s a big one for real-estate investments.

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Harish Bijoor is a brand-expert and CEO, Harish Bijoor Consults Inc.

Follow him on Twitter.com @harishbijoor

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