India today is one of the most lucrative investment destinations with a high consumer spending capability and a favorable business environment necessitating a well-researched India-specific market entry strategy to make an impact.
The growing economic influence of India coupled with a conducive work environment, availability of low cost skilled labor and increased spending power of today’s generation has seen many foreign players vying to make investments in India. But, before formulating an Indian market entry strategy, its uniqueness needs to be understood.
With more and more cities coming under the Smart city projects, increased communication and improved infrastructure and integrated development, India offers a perfect investment opportunity. India also has a greater advantage as it serves as a gateway to other Asian countries thus in turn requiring a meticulously planned India market entry strategy.
Experts point out that due to the sheer size and immense diversity in the region, language, culture and economic standards of the Indian population; one single India market entry strategy doesn’t fit all. In addition, the global business models and practices of multinationals cannot work in totality in the local environment.
The need is for multiple marketing strategies as per the target groups with a deeper understanding of consumer preferences, government regulations and the continuous evolving sales, marketing and supply chain network. Selection of partners (which have a good know-how of the local market, are trustworthy and reliable) also plays a key role in helping foreign firms penetrate the different geographical regions and tier 2 and tier 3 cities of the Indian market. Establishing joint ventures, subsidiary relationships with the India-based companies or working through an agent can help these firms address the distribution network, marketing needs, pricing, procedural concerns, taxation issues and market volatility to excel in the Indian market space.
In spite of many multinationals having made deeper inroads in the Indian market space, there is always a meticulous planning, deeper commitment and patience towards their workforce, consumers and partners and more empowerment to their local talent required to make their India market entry worthwhile.