A SNAPSHOT of What it takes for Foreign Businesses to WIN in India
To gain successful entry to a market in diverse country like India, any business would need to address issues of consumer preferences, locatization, price sensitivity, distribution network, sales and marketing practices, branding, protecting intellectual property, etc.
The best way to pierce through these issues in India is to have an 'Indian' on your side.
Depending on your goals and strategy for India, this 'Indian' could be an agent, representative, distributor, Joint Venture partner or a Strategic Partner.
- Business Commitment: Create a solid business plan (supported by appropriate Investments) for next 5 years with goal of minimum 3x growth in India. Keep in mind that company's growth should at least match the sector's growth in India.
- Hire local talent with necessary skill sets that are aligned with parent company's leadership team and that has connections in Indian market.
- Parent Company's leaders should visit India a couple of times in a year at least
- Localize your products/offering, business model and practices according to clients' segments/needs: give-&-take on functionality vs. pricing without compromising quality; sole distributorship vs. on contract with entrepreneurs to keep the cost down and increase market penetration
- Find a Reliable local partner and Create startegic business Partnerships: Carefully weigh Wholly Owned Subsidiaries against Joint-Ventures.
- Create personal relationships with Government, regulatory authorities and strategic partners.
- Invest in R&D to better understand and incorporate what appeals to an Indian buyer.
- Business Development team should have the zeal and commitment to hunt for new business opportunities for expansion
- Give local talent opportunities to grow in both professional and personal life
- Brand Creation: Position your products such that it carries premium value over others. Many companies use known-figures from Indian cinema as brand-ambassadors of their products.
Keypharses: Doing Business in India, Investing in India, finding partner in India, managing team in India, managing business in India, hiring people in India