India is one of the most exciting and fastest growing consumer markets in the world. On the back of some important flagship Government initiatives and a determined leadership, the Indian market has recovered from its slow and indecisive growth era, and is now surging ahead. Alongside, the Indian middle class continues to grow and is driving per capita consumption to new levels.
It is no wonder then that the India market is again high on the radar of large enterprises and promising startups. The India market is one of the toughest in the world, and the consumer is very demanding. Given that, a success in India portends well for the enterprise globally.
So, how does one take advantage of the India Opportunity? What steps need to be taken to enter the India market?
Before making the commitment and budget available for entering India market, it is prudent to understand the India market – especially mapping the ecosystem, the existing competition, and the psyche of the end user. This could be through concept testing, product testing, price level analysis through partners based in India.
Once a decision has been taken to enter the market, it is useful to consider India-based local development partners/contract manufacturers who could develop the products locally, tailored to the needs of the market. Such collaborations would also benefit from state incentives, and help companies avoid huge upfront capital investment. As sales reach a certain level, local manufacturing could be leveraged to drive cost and quality efficiencies, with India being used as the global supplier. Again, its imperative to have a trusted partner to support this decision making process.
It is also prudent to consider a soft market launch adopting “online only” approach, leveraging the vast reach and connect of Indian ecommerce platforms such as Flipkart, Snapdeal or Amazon. India is a large market, beyond the reach of a single or group of distributors. It is no surprise that ecommerce is a great enabler, for establishing national presence quickly, and drive rapid sales fulfilling the growing aspirations of emerging India in Tier III and Tier IV towns and villages. Coupled with that, the social media is a great enabler for conversations in the target audience, either in English or any of the Indian languages. By leveraging machine learning tools and interactive advertising tools, companies can quickly tailor their marketing for the discerning Indian consumer- whether it be in towns or villages.
Lastly, it pays well to have a trusted advisor who understands the market ecosystem well, has the right aptitude and hunger, and has linkages across industry and government.
Talk to us at Hammerkopf. Startups and established enterprises trust us with their India-entry strategies. We enable ideas into realities.