Selling to the Indian Market – New Issue of India Briefing Magazine Out Now

What’s in this magazine

Chapter 1

India’s thriving retail market, along with its growing middle class, expanding consumer spending, and digital growth, make it a highly attractive destination for businesses seeking growth opportunities. The fast-moving consumer goods (FMCG), apparel and footwear, and consumer electronics segments are the largest segments in the Indian retail market and India currently ranks as the second largest internet market globally, with over 800 million internet users.

While India is primarily an offline market, the pandemic has influenced shopping and consumption preferences, leading to an increase in online commerce. Retail investors should consider both traditional and online channels. By 2024, offline retail is expected to hold approximately 89.3% of the total Indian retail market; meanwhile, the online retail market is expected to reach a value of US$120-140 billion by FY 2025-26.

With the right strategy and approach, investing in the Indian retail market can prove to be a highly profitable decision for businesses looking to expand their global footprint.

Chapter 2

When expanding into India, it is crucial for foreign companies to select the appropriate entity structure that aligns with their requirements. This decision plays a key role in establishing a strong presence and achieving financial success. It is essential to carefully evaluate India’s regulations on foreign investment, especially within the retail sector, as it undergoes close scrutiny.

Foreign brands operating in India have several options available, including establishing an Indian subsidiary, forming joint ventures, or entering into licensing agreements with Indian partners. The FDI policy of the country permits foreign brands to hold equity interests in Indian businesses, subject to specific requirements and permissions.

Franchising is a viable model, considering India’s growing consumer base, increasing disposable incomes, and urbanization trends. E-commerce retail trading is not permitted for companies with FDI in multi-brand retail trading. Also FDI is not permitted for the inventory-based model of e-commerce activities.

Chapter 3

A successful strategy to sell your products and services in India requires a multifaceted approach. This includes choosing the right entry strategy based on in-depth analysis of consumer preferences, existing sales channels, and the evolving landscape of distribution and marketing practices.

India, being a vast consumer market, exhibits significant cultural regional diversity. Moreover, different regions vary in terms of- their socioeconomic profiles thereby impacting spending capacity or decision making. All these factors influence consumer purchasing behavior; it is not uncommon for certain brands to enjoy higher consumer affection in certain parts of the country than others.

Customizing your retail strategy, such as by localizing marketing campaigns, product innovation, and cultivating digital appeal, may position you for success in the Indian market.