An overview on India Market Entry Strategy

Posted by Coral Research on March 17th, 2017

Indian economy is growing at an accelerated pace in association to other nations and has shown elasticity in times of global financial crunch. Today, the Indian market with nearly 1 billion population has become a heart of opportunities for the international investors, who can definitely see the possibilities of extensive growth and expansion here. The major sectors like, infrastructure, environment, transportation, energy defense and healthcare with their growing demands invite them to India market entry. There are many foreign companies especially Singapore and UK clients who are looking at entering the Indian market. For entry into the Indian market, it is necessary to recognize the target business and find good allies who understand local market well and are thoroughly acquainted with procedural matters. Foreign investors should also investigate various market options in India that could include forming auxiliary relationships or joint ventures with an India-based firm.

Some of the major points of India Market Entry Strategy are:

• The capability to understand the distinct market and strategies towards definite regions and income groups (target segment);
• Creating offerings according to the target group in order to gain early approval;
• Combination of the informal sector into the core marketing model by augmenting access to relevant networks;
• Density in approaching the market; getting mandatory licenses and approvals.

India necessitates various marketing efforts that inscribe differing regional possibilities, standards, languages, cultural diversity, and levels of commercial development. Gaining access to India's businesses requires thoughtful analysis of consumer choices, existing sales ways, and changes in delivery and retailing practices, all of which are constantly developing. If you are intending to enter the Indian market, you require taking into account several significant steps. While venturing into the Indian market, it is very critical for any investor to develop a fundamental knowledge of the underlying of the concerned market in India. This method, in turn, should be sustained by a sound market entry strategy. The job does not end here. It needs precise implementation also for aspired results.

Five Tips regarding India Market Entry Strategy one must surely follow:

1. Find the right associate India is the world’s seventh largest economy in words of GDP with the population of 1.3 billion people. It is a convoluted market for companies from abroad.  Recognizing the right partner goes a long way in fortunately navigating the complexities of the local market environment for a new player into the Indian market.

2. Localize your products and services to meet buyer needs and choices. India is a huge and distinct country comprising many different identities, cultures, languages and religions. It is critical to evade making opinions, as local practices and consumer behavior may vary substantially from region to region. 

3. Remember the high level of price sensitivity It is extremely important for a new investor into the Indian market to make its price strategy right, specifically if it’s targeted towards the low and middle-income populations.

4. Enter the Indian market for long-term growth, not to make a quick buck India is absolutely not a site for businesses to make quick gains – you need to be funded for the long voyage. Because India is such a large and attractive possibility, there is no shortage of competition. Given the complexity of the market, it takes time for the businesses to understand the environment and develop the right India Market Entry Strategy.

5. Due attention should be given to professional advice, before entering into a formal agreement. Court judgments are often held because of the huge overload of cases, so any contract should provide the scope for alternative conflict resolution tools.

However, there are some hindrances as well on the route to the market entry in India. You will have to be well programmed to take them. The potential impediments are:

• Rigid and complex social structure
• Indian Administration
• Infrastructure matters

India is a nation with diversified societies and therefore it is difficult to execute any major change in social construction or introduce financial changes unanimously. However, the opportunity is gradually changing and the government is forcing hard to make effective changes. Efforts are also being made to cut down on the red-tape. There are certain infrastructural problems that also require being resolved as fast as achievable. Poor road issues and the dearth of power supply are some of the infrastructural problems in India. However, the government is choosing useful measures in these areas as well to draw foreign investors to the nation.