He said that the US was a powerful IT economy because companies like Cisco, Microsoft , Intel , Oracle, Sun Microsystems and Dell are all narrowly-focussed companies. Speaking at the Summit, Mr Ries said: `The key branding concept is to dominate the category on a worldwide basis. India has a big opportunity to do so in software.'' He pointed out that out of the Indian population in the US of less than one million, some two lakh are in the Silicon Valley. ``Indians are involved in the management of 40 per cent of high-tech companies. They lead a plethora of startups, including $552 million Cirrus Logic, $242 million Exodus, $156 million Juniper Networks and $120 million Tibco Software,'' he added.

Highlighting the significance of bringing focus to one's operations, Mr Ries said that in business-or even in life- the battle is always between the specialists and generalists. ``It helps to be a specialist,'' he hints, as he trots out a series of New Economy predictions:

Paper directories are doomed. Elaborate full-colour company/product brochures will become exceedingly rare. The postal service won't be delivering as much mail. Financial services of all types will shift to the Web. Classified ads will shift to the online medium. The parcel delivery business will soar. Internet retailing will become a price game. Real world retailing will become a service game. Internet search engines will decline in importance. The Net will change many aspects of the telephone industry. And beware: governments will increasingly try to cut in on the action. In a quick offline chat, Mr Al Ries provided some more detailed insights to The Financial Express. Excerpts:

You have said that the revenues of newspapers are particularly vulnerable with classifieds shifting to the Internet. In the US, over 40 per cent of newspaper revenues ($ 17 billion) are accounted for by classifieds, currently. To meet these emerging threats, should existing newspaper companies build online properties that can secure classified revenues in the future?
This is a complex issue. They should create a new brand for online expansion.What is the biggest challenge for selling on the Net?
The major challenge for the Internet companies would be to create revenue streams distinct from ad sales. In the beginning anything on TV, including commercials, was fantastic. I don't see the same thing happening in the Internet. Nobody says I saw great ad on the Internet.

Should companies like Nike or LG sell products online by creating a new online brand-or should they extend the existing brand online?
It's idiotic to compete with your dealers. Companies should have a site only to disseminate information.

Just how brand-sensitive are consumers?
For example, with import restrictions easing, many local players are concerned that consumers are likely to choose cheap imports over well-established domestic brands.

This could be noticed in lower segments but as the economy picks up and the consumers gain from the boom, they will look for the assurance of their brands. The future belongs to the relationship between brands and customers.