- Now Indian companies have start realizing the importance of marketing and advertising and Indian advertising expenditure has been increased to 3.4% though its still less as compared to developed countries but its shows good sign of growth.

- Regarding, Alibaba get funds from many companies & join hands with yahoo. However, IndiaMART have not get funds from any company in past (as per my knowledge) before the entrance of Alibaba in India. In just few months, IndiaMART gets funding from Intel.

“2005 Alibaba Group forms a strategic partnership with Yahoo! Inc. and takes over the operation of China Yahoo! ” means more knowledgeable person is with you in Internet industry where the companies like IndiaMART are still running on their internal knowledge. “

Now, experienced and knowledgeable people – Deep Kalra (Founder and CEO of Makemytrip.com) and Dr. Nachiket Mor (President, ICICI Foundation) joined the BOD of IndiaMART.

It reflects that somewhere down the line IndiaMART is afraid of competition or may be preparing himself for competition and following the footprints of Alibaba to reach at the top.

But, here the question is ‘How far it’s true that Indian players are truly afraid of competition or are they just trying to prove themselves better & bigger than global players?’

1. The Indian advertising spends, as a percentage of GDP, is 0.34%, which lags behind other developed and developing countries. Please refer
http://enil.co.in/radioindustry.html ( although figure is old but if check still ratio is same) & this is we talking about entire advertisement expenditure
when the matter come on B2B advertisement come in India still it get very hardly attention on this.

Here in India companies first search for the buyer then only they think for the manufacturing.. and when buyer is start saying them bye bye they go for the
advertisement. We will hardly find lot of cases where SME’s are not even spending 1% of their turnover in to advertisement.

2. In China companies get the financial assistance from the their government to support it in India facts is know to every one. Even our former prime minster
Mr. Rajiv Gandhi had given a public statement that actually people get the 40% of the subsidy given to him….I hope every export companies know how much effort
they have to put in taking duty draw back…

It’s a fact..none of Indian companies can grow until and unless they will take their business out of India to avoid such a small problems… they can either earn more
money from overseas market so that they can get more fund to handle these kind of problem which they are facing in here in India or do any magic so that they
people became crazy about to buy their services.. because in India the budget of advertisement for a 100 crore movie is higher than 1000 crore turnover company.

3.Last but not the least as some one had well said ” Arjun ..Arujn is liya tha kyo ke uske Guru Dronchariya the ” So Alibaba is alibaba b/c

a) Alibaba Group raises US$25 million from Softbank, Goldman Sachs, Fidelity, and other institutions in 1999 only where the companies like IndiaMART get the
chance of taking the chance of $23 million now here in 2009. …and all of us know what kind pressure you have when you had taken any fund of from any investor..

b) “2005 Alibaba Group forms a strategic partnership with Yahoo! Inc. and takes over the operation of China Yahoo! ” means more knowledgeable person is with you in Internet industry where the companies like IndiaMART are still running on their internal knowledge. Which has both +ve and -ve both the aspects.