Why India is a Lucrative Destination for International Manufacturers

International manufacturers outsourcing their operations to India have many benefits. It includes the degreed, trained, and qualified manpower of India that is ingrained in the work culture offered by the outsourcing/ offshoring industry. After all, India is ranked as the No. 1 outsourcing country in the world, and all of it does make sense due to decades of success. Below, TIW has shared a few aspects that make global brands invest in India a hit game:

Affordable Labour & Raw Materials: While we sum up the costs of hiring and retaining an employee overseas, his salary, technology, on boarding, and other benefits give a number that is quite over the budget we have planned. Whereas, when you plan to outsource the task to a nation like India, you get to spend only 40% to 50% to get an employee on board, as compared to the ones hired in the US or other developed countries. It keeps the budget in control while giving you more manpower required and saving a lot. Other than that, the cost of raw materials is comparatively low in India because the country is rich in commodities, natural resources, ores & mines, etc.

Fast-growing Economy: India is one of the fastest-growing emerging economies in the world. Even during the time of whiplash triggered by the pandemic, the Indian economy showed resilience and played a pivotal role in global economic recovery. In 2023, the Indian economy will continue to grow at a staggering pace backed by expansion in job markets, a jump in domestic consumption, and recovery in major industries. Most of the major rating agencies have predicted that the Indian economy will grow at a rate of 6-8% in the coming fiscal as well, becoming a bright spot in the global landscape.

Evolving Consumer Preference: The consumer preferences of Indians are transforming and evolving. Indians are now becoming very fashion and brand conscious. Increasingly, the preferences of average Indian consumers and their peers in the developed world in narrowing. Indians are now very brand conscious. The positive momentum has been dovetailed by growth in middle income, digital revolution, and the scorching pace at which modern retail is growing in India. Indian cities, as well as suburbs & towns, are now dotted with big malls, hypermarkets, supermarkets, high street, etc. signifying the rapid transformation of Indian modern retail business in the country.

Government Impetus: The curation of jobs is the most apparent advantage of FDI. It is also one of the most crucial reasons why a country, especially a developing one like India, looks to fascinate FDI. Improved FDI enhances the manufacturing as well as the services sector. This, in turn, curates jobs and aids in reducing unemployment, especially among the educated youth and skilled and unskilled labour - in the nation. Improved employment renders enhanced incomes and equips the population with improvised buying power. This boosts the economy of the nation. Consequently, the government in India is taking a proactive impetus to support the economy.

Vast Domestic Market: India offers a quite vast market for global businesses as consumers are evolving in their preferences and choices. The quality of the product or service matters to them the most, no matter if they require to pay a couple of bucks extra for that. And international businesses having access to top-notch machinery, plans, and execution gives you an upper hand in offering Indian consumers the best of everything. India’s large size and changing consumer preference coupled with the inherent expertise of international players make the perfect fit.

The Road Map of India Market Entry Strategy

Foreign manufacturers looking to enter and expand in India needs to conceptualize a robust market entry strategy. India is one of the countries where there is a diversified consumer, offering a wide range of the market to global businesses and startups for expansion. A few aspects to be considered include addressing regional language, cultural differences, market enablers, etc. Thus, all global businesses or Indian startups need to study the Indian market before beginning their venture here.

India is also a vast country with more than 30 provinces. The approximate size of the economy to consumer requirements, all differs in India to a great extent. And no matter whether your business is globally renowned or a startup, when you begin in a new market, it is quite a task to get all the relevant information. And this is where a good market research company like The India Watch (TIW) comes into action. Based in India, this market research consultancy extensively performs surveys and research. You can rely on TIW’s outcomes and imply them to your business growth.

Key Challenges that an International Business or a New Startup Faces in India

Being a diversified market, all the businesses and startups in India face many challenges. From food choices to languages to clothing preferences, things change in India speedily. And all these are some of the challenges faced by new startups and global businesses while they plan an entry into India.

Shift Consumer Preference
Regional Demands
Price Sensitivity
Geographic Diversity
Finding Correct Partners

The growth of an international business or a start-up in India needs a serious approach that proves fruitful. Here are the steps that we follow under our market entry services-

Measuring Marketing Effectiveness:Every business has its ideology behind marketing it, but the less they have is an idea about what will impact the consumers. Thus, our market research advisory enables you to learn about the same and if any alteration in your marketing style is still needed.
Identify New Opportunities: Market research aids in identifying new market opportunities for your business. These mostly include the identification of demographics where you can expand or focus your marketing, checking the market’s understanding of your product or service, etc.
Improve your Branding & Marketing:Our market research services perceive what customers think your brand is, and if they are heading in the wrong direction, what all measures or branding approaches we need to change. We do this by making brand awareness, competitive comparisons, and personification.

How The India Watch can help in India Market Entry

These, along with many other steps are followed by our expert team of researchers and surveyors to come out with the best market entry strategies for your business. You can rely on us and our services for whatever comes your way!

We give you the advantage of being incubated in India, which gives us incremental advantages to evaluate the right market entry strategy for the client alongside refurbishing valuable information on the target audience, age group, marketing strategy, competitive intelligence, etc.

Our services for India Market Entry Include

Prepare preliminary analysis, feasibility study, and business plans for international ventures, and project ideas.
Prepare detailed market entry plans for international business alongside strategic intelligence & operational know-how to evolve and succeed in the Indian market.
Prepare end-to-end market entry plan for international retailers from tailor-made market intelligence to company incorporation to shop selection, etc.
Offer business research advisory to international business owners, global conglomerates, PE players, etc. Our research services include, industry analysis, market assessment, customer assessment, value chain analysis, supply chain intelligence, regulatory research, etc.
International ventures which are still not sure whether to enter the Indian market or not can assign us for preliminary analysis, market scanning, opportunity assessment, etc.
B2B match-making services, vendor identification, business meeting support, etc.
As a local partner for our clients, we can render numerous other value-added services such as event participation, media & PR engagement in India, etc.
For any further information, feel free to drop us a mail at info@theindiawatch.com