India is one of the largest economies in the world but entering the Indian market requires a well-researched roadmap. Several foreign companies are seeking the opportunity to invest in the Indian market and build a consumer base. However, the process of business expansion in India requires comprehensive market research and analysis to understand it. India is known for its diversity and studying the market pattern, consumer demands, and implementation requires ace consulting and research.
Strong market research and strategy are required to draw the roadmap for a foreign company for their business expansion in India.
Right Strategy for Indian Market Entry
An experienced business consultant in India strategizes the whole plan to help the foreign business enter the Indian market. Smart planning is required starting with market research and understanding the demand of the customers. The first step is to identify the segment of products that are suitable for the Indian market. Conducive analysis and research first focus on identifying the growth driver that includes:
- The understanding of customer preference and needs is essential. In most cases, the viable choice is not to target the high segment population because the buyers for high-end products are less as compared to mid-end products.
- After establishing a rough understanding of segmented customers, the consultants help in finding the right partner to channelize the business entry. In a country with a population of 1.3 billion people, identifying the right local partners for indulging in distribution, sales, and networking are important. This helps in setting the base for a strong customer audience.
- Thorough knowledge of the local market is necessary, and this requires partners working with the local customers of different regions. A distribution and sales partner for the regional market helps in funneling the products to the customers.
- Establishing the price strategy is pivotal, according to the Indian customers. India entry consultant works on the ground level understanding about the demand and accordingly strategizing the price. When the product is targeted towards the low- and middle-income population, a low and affordable price strategy is to be maintained.
- It is necessary to analyze the Indian market through geographical diversity segmentation. A marketing consultant does this researching with the help of local business partners who have regional market expertise.
- These are the initial steps which help in laying the foundation for entering the Indian market and expanding the business. A strategic step by step process is required for a foreign corporation into the market and thrive to become profitable.
Prioritizing Important Activities to Lay Down the Entry Roadmap
After the market research and search for the target audience, the next step is developing the go to market strategy. And based on the research outcome it can be one of the following:
Directly selling your products in the Indian Market
An effective India entry strategy for foreign businesses is searching for a reliable distribution partner and collaborating for selling directly in India. The distributors play a pivotal role in connecting manufacturers to customers. A good distribution network helps the foreign product to penetrate the Indian market strategically. The distribution partners have local or regional sales agents who help in expanding the sales through marketing. They understand the valuation of the product and ensure it reaches the right segment of customers. The search for a distribution partner involves many assessment parameters like financial stability, distribution network, track record and performance of the distributor, integrity and compliance and cumulative vendor management.
Locally manufacture your products in India. Which can again be achieved through:
Setting up own manufacturing plant in the country
A foreign business can enter the Indian market by setting up their own manufacturing plant. A professional business consultant in India is instrumental in setting up a manufacturing unit for foreign business and kickstart the operations. This requires strategic planning and end to end project management. The business start-up requires ground level research which includes registering in India, identifying locations for setting up the manufacturing unit, working on a stable business plan, sizing the investment, selecting vendors and recruitment. The whole planning involves a thorough short- and long-term risk analysis, investment and firm decision making for starting the operations.
Acquiring or Partnering with a local company
The foreign businesses can enter the Indian market by acquiring or partnering with a local company. Such a partnership venture will help in getting fair opportunities to expand and grow with the Indian market. This is a complex process of India entry strategy, but it can be simplified with help of business consultancy. The acquisition or merger or partnership involves a number of deals and negotiations before closure. The process involves identifying potential companies for partnership or acquisition, preparing a deal, negotiating on terms, and finally closing the deal.
- The first step is to research and find companies which are potential candidates for a successful merger or partnership or acquisition. Amongst the list, it is important to select and shortlist the best ones.
- The acquisition or partnership cannot be worked up until there is a draft of deals, negotiations, and structuring of conditions.
- After the negotiation is complete, the closing is done on the deal and should be without any hostile exit. The final agreement must have all the terms and conditions and closing is done after getting all the regulatory approvals.
- After the acquisition or partnership is complete, it involves a lot of operational realignment, staffing and compliance rearrangement.
As a foreign business, it is not easy to enter the Indian market without proper research and ground-level understanding of the market. An experienced business consultancy company performs extensive primary and secondary market research to understand consumer preference. A methodological strategy helps a foreign company to start its business in India using the most appropriate method. One of the best ways to enter the Indian market is 100% FDI, where a business can start its operations by setting up their company.
Apart from that, collaboration and joint venture with an Indian partner is another way for a company to start its operation and sell their products. A branch office or representative office can be set up by a company to start its operation. A market and research business development consultant helps a foreign company to enter the billion-dollar Indian market using strategic methods. It involves market analysis, investment planning, finding out right Indian partners for sales, marketing, and distribution, and ultimately the expansion of a business.
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