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Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.
Our local consultant can advise you on the best way to enter the market, based on market and competition research.
India, located in South Asia, is the world’s second-most populous country, with a population exceeding 1.3 billion as of 2023. Known for its rich cultural diversity, historical heritage, and vast geography, India plays a significant role in global affairs.
The Indian economy, with a GDP per capita of around $2,100 USD in 2023, is characterized by a mix of agriculture, manufacturing, and services. Agriculture remains a key sector, supporting a large portion of the population. The service sector, particularly IT and software services, has seen rapid growth and global integration. Manufacturing is also expanding, with initiatives like ‘Make in India’ promoting industrial development.
India’s major imports include crude oil, precious stones, machinery, chemicals, and pharmaceuticals, vital for its growing economy and population.
Below are the potential growth sectors in India:
Over the last few years, India has been an outsourcing destination for various organizations. But this scenario is changing rapidly, and trade in services and goods is quickly improving. Cultural barriers along with government barriers are the issues one has to tackle to grow a business here.
The economy in India relies heavily on agriculture. A large portion of India’s land can be cultivated and it ranks second in farm output in the whole world. Countless opportunities in agribusiness are abound in India.
This sector contributes to the country’s gross domestic product, at an estimated value of 10% of the total amount. Agriculture is also the primary source of income for Indians especially in rural households. To note, around 830 million Indians live in rural areas.
Aside from the country’s major crops which include rice, wheat, coarse cereals, cotton, and oilseeds, India also boasts of an abundance of raw materials – buffalo meat, milk, bananas, mango, guava, pulses, tea, and sugarcane.
There are huge quantities produced in most food categories in India. The nation ranks among the highest in the areas of milk, fruit and vegetables, livestock, grain and other food production. However, the level of processing in India is low. Some examples of this include only 2.2% of all fruits and vegetables being processed and only 6% of poultry products.
17 per cent of India’s GDP is represented by its manufacturing sector, in contrast to the 53 per cent of the services sector. Lack of infrastructure and connectivity is seen the reason for the investment shift into more asset-light services sector.
Make in India is a national campaign that promotes manufacturing growth for both domestic and international products. The campaign aims to foster innovation, facilitate investment, enhance skill development, protect intellectual property, and build top-of-the line manufacturing infrastructure.
IT is one of India’s strengths. In view of this PM Modi has also launched digital India. The initiative aims to tap India’s IT capabilities and to promote investments into IT and mobile infrastructure.
With both hardware and software coverage, India aims to achieve the following:
There is an increasing demand for mobile handsets and electronics; this will in turn create opportunities for brand owners and trading companies to supply and see growth together with the market. Indian market also provides opportunities for software companies that provide expert solutions for mobile and e-governance. In order to effectively ride on the trend, investing companies must tailor their products and suite of applications and products for the Indian market.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
For a B2B product that is not a commodity or for customized solutions the story is different. Here sales needs to be done in alignment with the department that actually delivers the service or that determines the price case by case. Also then you have three different options.
As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention.
If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.
With the tooling of our partner Instantly.ai you can define your target group, whether it’s 50 or 50.000 people. Send them a sequence of emails, directly in their inbox, for typically under 10 dollarcents per persoon.
First determine who are the end-users of your product or service. And where do they buy it now? The best way to determine the right entry strategy is to approach these parties. Would they consider your product or service as an alternative? Do they agree with the positioning that you have in mind? And what competitors are they buying from now? These data will help you determine the right strategy.
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