Post Text: The one size fits all mindset can have only short-term benefits, thus strategise your goal which will sustain the on-ground activities for long.
Going global worldwide is a movement towards economic, financial, trade and communications integration. For growth-minded business owners, the rest of the world is their oyster. Seeking international growth by going global offers opportunity aplenty.
WHY INDIA?
Ignoring one of the most promising new markets in the next decade could not be wise. India's economy is one of the fastest expanding in the world, with a rapidly expanding consumer class. Economy forecasts paint India as the fifth largest consumer market by 2025. If the economy follows the trends pre-crisis, the numbers are only going to increase.
ADVANTAGE INDIA
- Seventh-largest country by geographical area, located right in the middle of South Asia, India has a population of approximately 1,200 million people
- It has the world's second largest labour force, with approximately 520 million people
- It is a huge pool of skilled manpower, professional managers and semiskilled and unskilled labour available at a comparatively moderate cost, often just a fraction of the rates prevailing in developed countries
HERE ARE 7 CONVINCING TIPS BEFORE ENTERING THE INDIAN MARKET
1. Questions to Ask Before You Start
Are your aspirations prompting you to debut your concept in India? Mergers and acquisitions consulting firms in India list some of the factors that can either make or break your business when you try to expand:
- Market Research: Will the product sell?
- Comfort with the location: Since you will probably have to live there temporarily to operate the chain in its early stages, you will need a working knowledge of the language and culture.
- Infrastructure: Can you get Western-style accommodations and support?
- Pricing: Learn how to set prices, negotiate deals and navigate the legal morass.
2. Perform a thorough Due Diligence
Before entering into any contracts, you need to understand the complete impact on your business. Prepare a market segmentation analysis to determine the saleability of your product and also a product gap analysis against the local existing productions. A SWOT analysis should be good to begin with.
3. Organisational Readiness
Language, regulations, customs, cultural disparities and others require the firm to be flexible during implementation of policies in the Indian market. The one size fits all mindset can have only short-term benefits, thus strategise your goal which will sustain the on-ground activities for long. Make your compensation packages attractive as per local standards and customs. Use a local information technology infrastructure that is compatible with your domestic infrastructure.
4. Financial Risks
If you want to enter the local market with limited financial and legal risk, appoint management consulting firms in India:
- Supply chain and distribution analysis: Companies must understand the prevalent supply chain and distribution model from a tax and commercial perspective.
- Set-up systems and process to gather required financial and performance data: When entering the Indian market through the indirect route, distributors become key sources of reliable data.
5. Business Opportunities in India
According to the most updated analysis, the best prospects for global companies expanding a business in India emerge in the following sectors:
- Automotive
- Airports
- Agribusiness
- Biotechnology and pharmaceuticals
- Creative and media
- Engineering
- Environment
- Financial and legal services
- Healthcare and Medical
- Mining
- Oil and gas
- Power
- Water
According to a market entry strategy, the top Indian cities of Mumbai, Chennai, Bangalore, Chandigarh, Mysore, Pune, Hyderabad, Coimbatore, Delhi and Thiruvanthapuram are best suited for starting a new business in India.
6. Strategic Planning to Enter the Indian Market:
An international company can start its operations in the country by setting up a company according to the Companies Act. The total amount of foreign direct investment that is allowed in such companies is 100%. An international company can start its operations in India by forming collaboration with an Indian partner of by establishing a subsidiary that is wholly owned in such sectors or even perhaps by setting up branch office, representative office and project office.
7. Local leadership
It is reasonable to bring in expats at the start phase; however, you need to migrate to local senior leadership eventually. This also sends a positive signal to the Indian executives that they can aspire to lead rather than convey that there is a ceiling at the top.
References:
https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-to-expanding-your-business-globally/#36421e5a3803
https://www.startupoverseas.co.uk/expanding-a-business-in-india/entering-the-market.html
Website: www.tecnovaglobal.com
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