The price variance one sees in the United States is huge. It is not just that price of “organic” groceries can vary up to five times. Even, something as standardized as coke would be sold in a restaurant for 5-10 times more than the grocery store next door. The same goes for non-perishables like clothes where almost all of them, despite being manufactured in the same set of factories can have a huge price range. Sometimes, even the quality is identical.

For example, A t-shirt that costs $5 to manufacture overseas and costs 5$ to reach from an overseas factory to the store can still be sold by a premium outlet for $50. While a small brand might sell the item for $15.

Since the premium outlet has about $40 margin, it can afford $10 advertisement budget for the same. Americans have huge disposable income compared to other countries. In other parts of the world, such price variance would never fly off. So, the advertisement budgets are rather limited.

And that reflects how big the advertising industry is in the US. About 500,000 people are working in the advertisement-related business. Compared to that, India has only about 37,000 people employed in the advertisement.