1. Not Being Prepared (The Due-Diligence Mistake)
Between 2007 and 2012, Mary Kay Cosmetics made a $28 million investment in India, opening offices and expanding its products into the country. In 2013, they withdrew suddenly, citing regulatory issues and other obstacles. In our opinion, the company did not do the proper on-the-ground research. In the meantime, their peers built billion dollar businesses. The regulatory environment in India may seem confusing, but we at Amritt can help you navigate it.
2. Not Developing an India-Specific Strategy (The One-Size Fits All Mistake)
In 2017, American car manufacturer General Motors stopped selling cars in India. GM lacked consistent leadership, with 9 different people leading their India operations over 21 years. An India-specific strategy is also necessary, rather than copy-pasting methods from other emerging markets. For more information on this, check out our CEO’s article in the Harvard Business Review.
Case study in success – Whirlpool successfully entered the Indian market by embracing a local approach:
- Localization of Production: 95% of their products are made in 3 plants in India.
- Cultural Product Design: They designed their washing machines to attract Indian buyers who used to prefer handwashing clothes over machine washing, demonstrating a clear understanding of India’s unique needs.
3. Not committing all-in (The Under-Investment Mistake)
A market the size of India requires a full commitment to succeed. Google is a great example of going all-in, and it paid off; they now have over 480 million monthly users in India.
Google started with on the ground research when bringing maps to India. Since many people in India navigate with landmarks, that’s what google maps decided to use – street names are not as useful. Another example of Google’s flexibility is that many streets in India are not large enough for cars to maneuver, so Google used motor bikes and rickshaws to create their street view maps. These features are now selectively available to users worldwide.
The overall trend is clear: India is a market worth entering, but you must spend the time and effort to make it worthwhile, customizing your strategy and products to the cultures of India.
Are you ready to hone your India strategy? Schedule a free consultation with the Amritt team today.
