I just attended Chennai Open Coffee Club this Sunday. When I shared my business card with other folks!! Which had my Madurai office address. People immediately asked me if I hail from Madurai. When I said I’m not they were all puzzled. They were curious to know why I choose Madurai; I’ve to explain them the advantages. Thrn they realised the advantages of a Tier II city. So, I thought I can write a blog on advantages in a Tier II city.
Low manpower cost: As compared to Tier I cities, costs in Tier II cities are low for several reasons
- Cities are small and travelling cost is low…
- Hangouts are not expensive…
- These cities are still conservative and there is no big partying culture…
- No big designer/fashion brands…
- Rentals are low…
- Very less entertainment options…
Because of all those people’s spending options are very less which in turn keeps the manpower cost low…
High work productivity: People have no distractions as they have no choice on entertainment options are concerned…
- Very less multiplexes and cine halls…
- No of malls is also less…
- No PUB culture, so there is not much Monday morning hangover…
- No Friday evening fever… Since they have no options people don’t get distracted by weekend planning…
- Once again travelling time is very less… So, they can make it to office without tension…
Because of all those things people have no other distractions in work and they give 100% in their work…
More educated youth population: Most of the Tier II cities have many colleges that cater to students of those villages in and around the city… Most Tier II city produces 2 – 3 lakh pass outs every year which is a huge chunk of talent which can be groomed…
Ethical values are high: Most people in Tier II cities value ethics a lot and in turn they expect it too… So, mostly they get attached to the company if they are respected and treated well… Attrition levels in Tier II cities are too low compared to Tier I cities…
Other than all those advantages we must carry some amount of social responsibility in developing these cities and people… Also when Tier I cities alone development there will be population explosion and we will loose balance… We must grow organically, so if we have the possibility to open an office in Tier II cities we are being a good citizen without taking extra efforts…
Every advantage comes with certain amount of disadvantages. My next blog is on challenges that can be faced in Tier II cities… Also I’d recommend all the readers to read the book “Fortune in the bottom of the Pyramid” by C.K.Prahalad…
AnandNataraj 
Why did’t you choose trichy ? Is there anything lacking in Trichy ?
Hmmm, infact trichy is my mothers home town. I preferred madurai because most of people who joined me from my previous company were from madurai & also i wanted to be on a place where i’ve never been… But my next expansion will be in trichy…