In recent years, India has observed a huge growth in the FDI investment from 16 billion in 2013-2014 to 37.36 billion in 2017-2018. India has now indorsed 100 percent FDI for both foreign retailers as well as the domestic market. As per IBEF, India’s retail market is anticipated to grow by 60 percent to increase up to USD 1 Trillion by 2020 due to factors like changing market demand, consumer’s lifestyle, rapid income growth, and growing middle-class population. India entry strategy priority is to do a comprehensive research of SWOT Analysis i.e. Strength, Weaknesses, Opportunities, Threats.
India Entry Strategy: An Attractive market for foreign entrepreneurs
- SWOT Analysis: The 1st and the most foremost market strategy for India entry are to understand the organizational strength, weakness, opportunities, and threats of the market you are planning to enter.
- Understand the Market size & Target audience: You must have the proper data and research analysis of the current target market, domestic vs. global market, implicit & explicit needs.
- Competitors Analysis: You must do a comprehensive research of the competitors and their coverage of the market. Also have proper research of the products and services competitors offers, their target audience, key segments targeted, a strategy they have followed and the pricing & positioning they hold.
- Industry characteristics analysis: Understanding the industry-specific scope and scale, updated market research, technology trends, audience taste, etc.
- Economic Assessment: Under the economic and geographical potential for India entry. You also need to understand the legal procedure prevalent in the particular country, cost of entering the product in the market, cost of manufacturing, etc.
- Channel availability: You must also know the market access and the channel option available in the country. The impact of different channels and access to the key segments or services.
The position where India stands today: Known facts about India
- Today, India stands as one of the largest contributors to the global economy.
- According to World Bank Data (2016), India is home to 1.324 Billion people and the world’s largest democracy with a GDP of over USD 2.274 Trillion.
- The Indian economy is persistently evolving, and enhancing opportunities in multiple sectors.
- In 2017, the organized sector in the retail market contributed 7% of the total sector while the unorganized sector contributed the rest to 93%.
- World’s fastest-growing economy
- Stable Government & Reforms
- Attractive Indian Policies like ‘Make in India’, ‘Skill India’, Digital India, etc.
- World’s largest workforce
- Ranking 3rd largest economy by purchasing power parity and
- The world’s 6th largest economy by nominal GDP
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