India’s economic success in recent years has helped to ensure that South Asia is the fastest-growing region in the world – but it faces significant challenges alongside its opportunities for further growth.
Indian middle-class consumers place strong importance on brands, particularly luxury brands. Status is a key factor – many people will buy luxury goods not because they necessarily like them, but because they are representations of success. Make sure you have a specific strategy focusing on brand localisation, brand building and awareness creation. New entrants to the market with a recognised brand may wish to consider a product launch or media conference to announce their arrival in India.
For everyday commodities, price is an important consideration for Indian consumers, particularly at the lower-middle class and lower- income levels. As opposed to status items on which wealthier Indian consumers are willing to spend more, non-status items are likely to be chosen based on price.
India’s middle and upper- middle income households in larger cities are demanding quality across a wide range of products and services, especially those that focus on health and wellness, as well as education. The rural consumer market in India, comprising 700 million people, is largely underserviced at the moment for health and wellness goods and services, education and other consumer goods and services, leaving ample opportunity for growth.
As explored earlier in this guide, India is still a developing country with a less sophisticated logistics supply chain than in Australia and many of Australia’s traditional, more developed export markets. Less-developed infrastructure in some poorer regions in particular may cause delays in getting goods to markets and consumers.
You may need to adapt your product to meet Indian preferences or requirements. Adapting to local regulations, tastes and cultural preferences vastly improves your chances of success.
Language, culture and symbolism need to be considered when marketing and advertising in India. Generally, you canpreserve your English company name when trading in India. However, if you choose to adopt a name with a more local flavour, seek trusted advice before you register the name. Advertising is subject to some regulation in India. Enforcement of these regulations is not as strict as in some other countries unless an advertisement incites public outrage.