Brace yourselves. The massive financial fraud (so far they’ve unearthed $1.8 billion but it looks like there’s more to come) involving Nirav Modi and Mehul Choksi looks like snowballing into something much bigger — a knockout punch for the industry as far as consumer confidence is concerned.
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It was December 2008 and I was having lunch with Mark Boston and his wife Milly at the Four Seasons hotel in Mumbai. Mark and Milly had moved there after the terrorist attack on the Taj Mahal hotel, where they usually stayed.
A consumer’s belief that a product is indeed delivering on the values it promises for the price paid, rests on the confidence that the industry that manufactures the product is able to generate.
Industries do this by building or supporting robust institutions that can monitor, audit and verify the claims the industry makes about the product, its raw material sourcing and processes by which it reaches the consumer in its final form.