5 Things Global Brands Should Know Before starting a Business in India
Being a leading force in the global economy, India has attracted many foreign investors towards it. With more than one billion population with better purchasing power, many of the global brands would like to jump in and take advantage of the biggest democracy. Such a significant population has an appetite for foreign goods. Despite such population and market, it’s not as easy as it seems because of diversity in culture, people and their needs. Here are a few things a global brand should keep in mind to make passage to Indian business.
No matter how big the brand is, it can’t sustain without getting potential partners. Increase contact and relation with local dealers and distributors is one of the best ways to reach to customers. They have the most in-depth ground-level knowledge of the requirement and feedback of the product.
Business partner and franchise play a vital role in the development of business. They must be well aware of the cultural value and diversity of India. Having a potential franchise ensures that you get enough time to understand the market well enough.
Understand the Market
For any business, research is the key while hitting a new market. However, in India, it is slightly more critical. Every state in India has different cultural value and requirements, excluding a few things in common.
Growth opportunity, purchasing power, the stand of competitors and social environment are some of the many things that should be researched before entering the market.
Besides most of the Indian customers do not like to research on their own and believe in feedbacks given by others. Not only the traditional value should be respected, but also surveys should be conducted to understand the requirement.
Relate it to Culture and Emotion
Their moral, ethics and emotion drive Indians. It is a must to understand the customers’ perception to be successful. India is quietly different in this case. All the 29 states would have their unique and different requirement.
Indians are more inclined to purchase at festivals and functions which doesn’t happen every month. If a global business model is superimposed to make it a success, it might not work in India. The product and specific sale must be related to festivals and value emotions and culture.
Hire Potential Staff
A potential local staff makes a big difference. Managing the team is as complicated as setting up a business. You might find a bit challenging to work with the Indian workforce. Undoubtedly, they are laborious and honest, but it is crucial to understand how to handle them professionally and emotionally.
Understand the Laws and Legal Procedures
Though the ease of doing business has been increased in the last few years, yet it is essential to understand the legal procedures of registering the business including regulatory compliance, taxation, payroll, and labour law.
If you do not want to spend much time on this part of your business, you could also hire professionals and get it done by them and focus on the real development of your business.
Many statistics say India would be able to sustain a growth rate of up to 10%, which is why the business must stay in the competition. By following the above tips, it would be much easier to remain sustained in the market.