Doing Business in IndiaApril 23, 2017
Expanding business operations globally and targeting new market segments is a dream that every entrepreneur wants to achieve. However, while expanding the operations in the country like India adapting according to the market and culture is imperative. Where giants like Wal-mart, Apple failed to capture the market, challenges of doing business in India can be seen insurmountable. Companies who did not succeed in India blamed the market but failed to reconsider the mindset of their own headquarters. The problem with all the companies that failed was not the product in general but the number of factors that they took for granted.
India’s growing young population is the first attraction for any company looking to expand. The segregation of India’s population in the following chart suggests the target market that every company should consider before making a move into this fastest growing economy.
Significant increase in the middle class, which is identified as an affording class is the right market to tap for any global business. Now when a company has made up its mind to reach out this population, here are some survival tips that every western Company should reconsider.
1. Business in India is not done in the same way as in the home country -
Changing the mindset before entering into this growing economy may help an enterprise in a long run. Strategies that helped the business grow in the home country will probably need redesigning, restructuring, and major modification.
2. Expect delays -
Patience and perseverance are extremely important while doing business in India. Be flexible. Indian religious holidays are something to be marked in the calendar. Learning their way of business will not only help to set your foot in the new market but will also bring new insights and help build new approach towards the modern day business scenario.
3. You are not important, You need Visa -
Being someone important and known in your home country and flying directly from your private jet is going to be a disappointment. Permissions and proper documentation along with visa processes will make your operations easier. Do not expect to enter because you are someone important. You will have to go through a number of clearances, approvals, permits and Yes! You need Visa.
4. Location -
Keep your headquarters in the Capital (New Delhi) but expect to travel all over India. An effective market research is crucial to decide your location. Associating or collaborating with Indian companies can ease the operations.
5. Have a relevant entry strategy -
A well-defined business model designed by your expert team in not going to help for a long run, unless you have collaborated with an Indian Counterparts. Make sure your strategist managers are someone who worked or studied an Indian market closely.
The secret to survive and reap the benefits in this billion-plus economy is adaptation, localization, and commitment. The enterprise that will master the simple rules of adaptation will soon be able to rule not only the India market but also the markets around the globe.