Right-size the India market opportunity
The Indian economy is forecast to be the second-largest in the world by 2050 on a PPP basis, increasing its share of global GDP from around 7% today to 15% in the same period.
Despite the vast size and huge growth potential, international companies need to narrow down on the real opportunity in their market space to make the right investment decisions for India.
Getting this accurate picture can be a challenge due to India's complex market structures, the high share of unorganised players, and the lack of reliable data.
Therefore, as a first step, international companies must build up a granular and robust fact base for their target market including the market size, industry dynamics, and future growth path.
Understand Indian customers' needs
Having understood the Indian market opportunity, International companies need to answer how to market new products in India.
The huge scale and diversity of the Indian market presents both a highly attractive opportunity and a significant barrier to market entry for international companies.
With a population surpassing 1.3 billion India will shortly overtake China as the world's most populous country. However, the diversity in culture, income levels, and business practices is unparalleled. As a result, the needs of B2C and B2C customers are both highly distinctive and highly variable across the country.
Consequently, international companies that fail to understand what makes Indian customers tick and take a one-size-fits-all approach will struggle to compete.
Instead, international companies approaching India should first gain deep and meaningful insights into their target Indian customer and develop custom segmentation models suited to the local market.
Adapt your business model for India
Given the very different customer needs, purchasing power, operating costs, and competitive dynamics in India, international companies looking for long-term success should first look at how they can adapt their business model to meet the Indian market's requirements.
Given the scale of the opportunity, this is an approach that is well worth the investment. Whether its localising manufacturing and procurement, developing India-specific products or reimagining your go-to-market model, it is imperative that international companies take a first-principles approach.
This ensures your India market entry strategy is based on a clear understanding of what it takes to succeed here - rather than what has worked elsewhere.