Being an Indian sometimes I try to evaluate myself in terms of potential and capability that I have and sometimes I just imagine that what could be the potential of collective me and collective we i.e India.
Indian market has always been criticized about its uncertainty and dynamic nature. Every MNC’s that has tried to make their presence in India has to strive harder and do something extra and new. And many MNC’s has found Indian customers a Hard nut to Crack. They tried to establish strategies from other economies in India without understanding the actual consumer characteristics that prevails in India and thus has suffered or failed.
Many MNC’s believe that indian market is very big to grow their business, they don’t understand that the Indian market is big in terms of consumer base. But when spending capacity is concerned India still lags a way behind other economics. This is one of the cause that business strategies that may have worked for MNC’ s in other countries is not working here. If we compare this with china, chinese consumers are ripe and fresh they are ready to adapt themselves to whatever is new to them but in India with such a diversified consumer demographics which has evolved from past decades and decades of time cannot be changes. The consumers cannot be tamed so easily. Hence most of the companies are now changing their strategies in India and adapting themselves by formulating next best strategies to do business.
Talking about the potential one fact can enlighten the actual potential of Indian market “India has more number of television sets than sanitations in the country and it has more number of cell phones than bank account”. Many companies has been criticizing that India is not a good country to do business and develop a presence in the country. Rather they don’t understand the consumer dynamics and hence they are suffering. Companies should rethink their strategies and shall focus on understanding the consumer dynamics before criticizing the country as a whole.
I still believe that a country which has more than 18lakhs flats opening in the capital, Can produce a business for amazingly thousands of people. The thing is that one should understand the opportunity and exploit if most optimally.
Recent trends has also shown that the GDP of india is increasing very fast and thus the power of spending of common people is also increasing this has shown a paradigm shift in the consumer behavior. Now consumers are more willing to buy products first and pay latter.
One thing is sure that the strategies of other nation is not going to work in india, it has a diversified and large consumer base who share different ideologies, demographics and psychology. In order to establish a strong presence in India the companies would have to think different and innovative.
PGDM III Semester