someone asked me what kind of organisations are using consultants for market entry strategies in India - my two bits worth
Inbound companies into India are in the consumer markets - the current flavour is retail - people trying to see how to benefit from the fabled ' middle class' ( this seems to be the second coming for the great indian middle class - most FMCG companies fell for the per capita consumption growth story the last time !!) , so most of the companies in consumer markets are inbound stories - luxury retail ( designer jewellery, accessories et al), branded retail
On the other hand the gut wrenching efficiency drive that the Indian manufacturing companies went through in the 90s has left them lean and mean, low debt :equity ratios, access to cheap capital for the first time (???), strong domestic growth and sights well set on the foreign shores.... so they are aiming at the 'developed' markets - buying goods 'higher in the value chain' , buying brands, buying products at a higher stage of evolution ( flavoured water anyone? ) to understand how the business dynamics work or trying to be global players trying for value. So most of these industries drive the outbound market entry strategy.
Interestingly in the latter case, most firms which were family owned have brought in professional managers to drive this and given the overall level of skill available within the organisation ( quality is available, its the quantity which is an issue) consultants are called in...
what do you think?
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