India, being the second most populous country in the world, provides a huge potential market to companies across the globe. With rising middle class and increasing spending capacity of people in India, it might not a good idea for the global companies to miss the growth wave that India is riding on.
A market as big as India, it is inevitable to ignore the complexities that the process of market entry in the country brings along. For any company planning to set up a business in India without any experience in a similar region and the assistance of India management consultant, it may be overwhelming to understand all the challenges and the complexities that it may face. Below are some of the important points that companies should consider to have a better market entry strategy.
1. Find the right partner
With its vast geographical stretch and a population base of over 1.3 billion, it becomes very difficult to understand the state-level regulations, preferences of consumers, setting up logistics, employing a workforce, among other things. In such a scenario, having a partner who has spent significant time in the market and has set up base would help in overcoming all these hurdles.
Moreover, having the right partner on your side provides you with localized market insights that help in navigating through complexities at the local level. This also helps in identifying the right set of vendors, identifying right locations to set up plants and offices, among many other things.
2. Localize your products
The country, India can be explained as one of the best examples of “One Size Does Not Fit All” situation. Indians are very selective in their taste and preferences for different products. Even within India, the choices and preferences of people vary significantly from state to state. In such a scenario, if you are a global company with a standard set of products, you might have to tweak your product line to suit the Indian markets. McDonald’s, Subway, Dominos, Burger King: all these are right examples for companies operating in the food and beverage sector. Their success lies in understanding the Indian taste buds and then modifying their menu items to suit the Indian market.
From the first point, identifying the right partner will play a key role in achieving this step.
3. High Price Sensitivity
Indians are a price-sensitive lot. You need to be very particular in expressing this to Indian consumers that whatever they are paying is worth for what they are getting. This is applicable for Indian brands as well. For instance, in the automobile sector, Indians are obsessed with the mileage of a car. One of the Indian companies did not shy away from spreading the message that their cars provide the best mileage in the segment.
Apart from advertising, pricing should be done in such a manner that the target audience is able to afford the product and should not feel that the products are expensive and beyond their reach.
4. Think Long-term
Think long-term, India is not a short-term game. This goes for all the companies planning to enter India, irrespective of their industry or product portfolio. India being a complex regulatory structure and the vast country will require time to set up a base and reach to the right customers. India has had many success stories for the companies that have come to India with the objective of setting up the base for the long term, proving their successful association with experienced management consulting firms in India. Toyota, Hyundai, McDonald’s, Amazon, Samsung, LG: all these are the examples in front of us. During the initial years, these companies tried various approaches to establish themselves and now they are leaders in their respective areas.
In a nutshell, these are some of the key considerations for any company which is planning to enter into Indian market and/or setting up their business in India. However, their success depends on multiple factors including their association with the management consulting firms in India and their robust market entry strategy for entering the Indian market. Tecnova, the India management consultant helps global organizations enter the Indian market by helping them understand the ongoing trends in the country with regard to the growth and demand of the products and services of the organization.
Website: www.tecnovaglobal.com
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