Category: Cover Story
Many believe that Nepal is still an under-explored market given the potential it has. The market is growing and chances of further expansion are still very high due to the increased awareness and affordability of consumers.
Entrepreneurship is something that will help the country to achieve sustainable development.
Nepal was first country in the region to be exposed to international brands. Some 30 years back, India did not have the access and exposure to the brands that were here in Nepal. Nepali consumers have always been exposed to these kinds of international brands for last 30-40 years.
Outlets of the world’s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers’ access to information created by information and technology have brought about an unprecedented shift in the consumers’ brand use habit.
Online Media is an example of the impact of Media Convergence in Nepal but it has not been able to make a significant impact yet. There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement.
The insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers.
The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks.
The continually rising premium rate is a serious concern because they impact the sustainability of the business. The pooling mechanism is one of the possibilities we are exploring in order to stabilize the market.