With over 1.3 Billion citizens and a market size that offers nothing but potential, India is a fantastic country to invest in. With 467 million employees throughout the country, India has the second-largest workforce in the world, making the country’s share in the global workforce a whopping 30%. Additionally, 1/4th of the global population of people under 25 live in India, making the country a great spot for brands that cater to this audience or want a young workforce in their offices. With the government establishing favorable regulations that encourage Foreign Direct Investment, it’s no secret why more and more international organizations want to set up shop in this vast country. And, if all this doesn’t convince you, consider this – by 2025, India will be the largest consumer market in the world.
Now that you know why India makes for a great market, let us take you through the basic know-how for an India market entry strategy:
India market entry strategy: how to make a successful one!
The success of your India market entry strategy depends on a variety of factors. Some of these factors include the following:
- Understanding India: If your organization can understand the diverse regions in India along with the mentality of various income groups, you should be able to craft multiple strategies geared towards capturing different markets.
- The adaptability of your product: You must identify any scope for Indianisation of products in order to push for acceptance. For instance, McDonald’s offers a variety of vegetarian menu items and has completely removed beef from its offerings to ensure Indians accept the chain.
- Integrating various sectors together to gain access to relevant networks.
- The ability to be patient: Your efforts must be consistent even in the face of slower results. Additionally, you need a lot of patience while obtaining licenses.
- The ability to outsource: Outsourcing services, along with manufacturing products, are the two key routes for establishing an FDI in India.
Other factors to consider while creating an India market entry strategy!
Apart from the factors listed above, there are many considerations to ponder over before you go ahead with your India market strategy. These include the following:
- Can your organization even compete in India? You must conduct a market assessment, legal and regulatory assessment, entry barrier assessment, customer assessment, and understand the industry you are about to enter.
- Can your business model even work in the Indian market? You must be flexible enough to realize that the model that worked in your own country may not fare well in the Indian market. This is something that you may need to re-work in order to ensure proper entry into the Indian market.
- What is the best way to enter the Indian market? You must establish whether you plan to open a unit in India, be a part of a Joint venture, or acquire a business in India. For instance, Ethihad Airways entered India through a J.V.
- Is India the right country for you at this moment? Understanding the risks entering the Indian market as well as the benefits is the only correct way to determine this.
Working with consultants can be the best way to create an India market entry strategy!
No amount of research can prepare you for the ground realities of any country, no matter how detailed your documents are! In order to create the most astute India market entry strategy, you must work with a seasoned consulting firm working in India. Their rich experience in helping businesses establish headquarters in India can help you ensure you hit the ground running!
To create a great India market entry strategy, get in touch with business consultants who know the ins and outs of setting up a branch in India!