How strategic partnerships can help global companies enter India and scale their business

Over the last two decades, many MNCs have made deep inroads into the Indian market. India is the world’s largest open internet market today, which translates into a plethora of opportunities for global organizations.

The Indian economy has been witnessing a growth trajectory like no other, making it a favorable destination for global companies looking to expand their reach and create a sustained business success story. Currently, India is the fifth-largest economy globally and is projected to grow to $5 trillion by the end of 2025. India is the world’s largest open internet market today, which translates into a plethora of opportunities for global organizations. However, succeeding in India requires more than transplanting a global idea. Organizations that have made a mark in the subcontinent come to India with a long-term commitment and consider India not just another market but also a learning centre for launching and scaling in emerging economies worldwide. Consequently, strategic partnerships play a crucial role in enabling success for global companies in India, in more ways than one. Some of these include –

Finding a place in India’s cultural zeitgeist: India is a diverse continent both culturally and economically, to an extent that every 200 km, language and culture changes in the country. Given this diversity, understanding the pulse of Indian consumers and what shapes their sensibilities, is one of the most critical aspects of making a lasting impact in India.

Cricket, movies, politics, music, festivals, and food are all popular pursuits in India and for a global brand to build a deep consumer connection, it is imperative for them to be able to leverage these cultural moments. Global organizations need to recognize that many Indias exist within the subcontinent and to achieve scale and success, a localized strategy is a must. A deep-rooted meaningful connection with key target audiences is often built on the back of such momentous moments that bring people together almost naturally. This is where the right strategic partner and their understanding of the local know-how can hugely benefit global brands that are new to the cultural nuances of India.

Forging strategic partnerships: Over the last two decades, many MNCs have made deep inroads into the Indian market. The key to matching pace with the diverse market is to invest in cultural alignment through a phased approach consisting of access driven localisation of positioning, product and channels for an engaging market penetration.

The Indian business landscape is far more open and accessible for global companies, as compared to some of the world’s biggest economies. The increased focus towards welcoming forging investments in the country has further unlocked India’s potential and accelerated the growth of its economy. Recent successes achieved by some global behemoths including Uber and Airbnb showcases how a well thought strategic crafted partnership with people, organization, government & IPs is important for long term growth and impact.

Leveraging India’s potential as the innovation hub: India for long has served as a go-to destination for low-tech services but the market has now become the tech and innovation hub for various global organizations. With its massive consumer market, it has users for all kinds of new products or technology and is slowly developing into a centre for emerging markets. If it works in India, it would almost certainly work in other developing economies. While the country has already established itself as a trusted player for service delivery, it is now on the cusp of becoming the product innovation hub for the world.

India is the world’s largest democracy with young demographics and an open digital market. It does offer many opportunities but with its own unique challenges. Therefore, it is better to look at it as a collection of interrelated regional economies, with varying regulatory and investment environments from one state to the next. While the nation has enormous prospects for global brands, it continues to be a large and complex market that requires careful navigation. Approaching the market with a multi-dimensional view, backed by a local strategic partner can lead to a successful venture in the country.

Localisation Strategy: With 700million online users and nearly 200 million online buyers in India, initial success for a global business is achievable with the right product and strategy. But for sustained growth, companies have to navigate through various market complexities. With a population of 1.4 billion, 20+ other official languages, varied dialects, food, and living styles, India provides an opportunity to global brands, like no other developing economy. It is equally important to look at India multidimensionally, as consumer behaviors drastically differ between urban metros and Tier 2 and 3 cities. An empathetic approach to the market with focus on the cultural nuances, market sentiments, and customer segments mentored by a local partner can only ensure continued success.

To summarise, for making it count in India, global organizations require a deep understanding of the country’s diverse cultural nuances, a solid local operations partner, investment in local talent and an unmatched understanding of the business ecosystem. For tapping and benefitting from the ample opportunities that India offers, global companies should enter the market with a long-term commitment and vision and must customise their working model to suit the requirements of the ever-evolving Indian consumer.

Note: This is an opinion piece by Viral Jani, EVP & Country Head, India, Times Bridge. The story originally appeared in The Financial Express.