What Global Brands Should Know Before Entering India

What Global Brands Should Know Before Entering India

Indian market is becoming one of the fastest-growing economies in the world and this is attracting many international brands to do business in India.

Due to the increasing demand for international brands, India has become one of the favourite destinations for big companies to do business.

But there are few things which need to be taken into consideration before any international brand enters in Indian market. Following are six points which a global company should know while they are planning to grow in India.

1. Know Your Market

This is the first step which every global brand should take before entering into the Indian market as this is the key to success not only in India but anywhere in this world. To assess your market correctly, you need to consider the opportunities which are available to you.

After this, you need to determine the size of your market and various segments in terms of demand, competitors and growth opportunities. It is also crucial to know about your targeted audience because their purchasing power and environment is going to play a major role in the market segmentation.

The best way to not only enter but dominate Indian market is to understand the cultural differences as India is a multi-cultural nation and its people are inclined toward their tradition and morals.

2. Partnership with Local Dealers

One of the best and guaranteed ways to enter in Indian market is by making good relationships with local distributors, dealers and shopkeepers. For brands that are entering into the Indian market via franchising, local dealers play a vital role.

They will help a brand to navigate toward success. Make sure you choose your dealer or distributor who has good experience in the Indian market as it will ensure your growth in India. If you have a franchise which is already established then it will be easy for you to build a relationship with local dealers.

3. Bring out Talent

Investing in human workforce is the best investment you can do to enter into a new market as they can be your biggest asset. India is filled with individuals who are not only talented but also knows how to solve a complex problem by thinking outside the box.

People of India are enthusiastic and eager to learn and work in a new environment. Indians are driven by emotions so if you will take care of them and their talent, you will be rewarded with their loyalty which will eventfully increase your profit.

It is important to understand that the population of India are mostly family-oriented and believes in their values over high wages.

4. Understand Legalities

It is important to understand the complexities of registering a business in India as there are numerous legalities for a newcomer in the Indian market. First step for starting operations for any company is to get incorporated through the Company's Act 2013.

Another way is to enter in Indian market is by Joint Venture with any Indian company. International brands have to register themselves as a company in India within 30 days after setting up their office.

To get rid of all this hassle, all you have to do is to contact a local person who is experienced and professional in the legal framework of a company in India.

5. Enforcing Contracts and Access to the Indian Courts

To get access to the Indian court system can be a boring and expensive process. Well, there is an improvement in the Indian judiciary system which has made various processes of the courts easy.

It is advisable that if you want to understand Indian judiciary system you should contact a professional lawyer or else you will face a lot of difficulties.

6. Slow Success

Due to the slow legal processes for registering a company, it might take time for setting up your business. One thing which might make your success a bit slow is the difference between the cultures of the two countries.

For example, if a company from the US is starting a business in India they might face problems in adjusting to the Indian culture and hence their success will be delayed.

It is important to have patience and believe in yourself, it is even more important to trust the process. All you have to do is to build a strong foundation and take care of your targeted audience.

No matter in which market you operate, just remember that "Customer is the King" and everything will be taken care of automatically.