As is becoming quite obvious, the four hottest market for growth are nicknamed BRIC (pronounced as brick) and they are: Brazil (Lula, while a Leftist leader has done things that would delight any free-market supporter), Russia (Not sure if Putin is a great leader but the growth potential in Russia is huge), India (with a middle class as big as the United States that is fairly comfortable with English language and western culture, and now that markets have opened up, the pent-up demand for foreign goods cannot be satisfied fast enough), and of course, China (so much so that they had to raise interest rates to cool down the economy).
In this article, though, we will discuss some of the latest trends insofar as direct marketing is concerned in the Indian market. Here are a series of factors that make India an attractive market for western companies to market in India:
In this article, though, we will discuss some of the latest trends insofar as direct marketing is concerned in the Indian market. Here are a series of factors that make India an attractive market for western companies to market in India:
- Fascination with anything "foreign" (particularly American, European, or Japanese)
- No language problem
- Well-informed segment that already devours American and British media and entertainment
- Indians now have credit cards (a very new trend that started just about five years ago) and they can also make purchases in foreign currency (allowed by the government less than two years ago)
- Rising incomes and a tendency to differentiate oneself from the others by showing off of material goods
- Emergence of favorable trends: professional women, vacations (not just visiting family members but actually staying in hotels and visiting new places, including overseas destinations), telecommunication infrastructure (cellular, Internet, text messaging, cable TV, etc.)
Everything is not perfect though in India for a western marketer. Wesley Wood thinks that India is at the same stage as United States was 50 years ago in direct marketing. Here are the challenges that you will face:
- Postal department is horrible with no reliable service. Accordingly, courier service is the only option.
- No meaningful databases exist for consumers. Some large financial institutions have information but is not available in a computerized form, may not have any more information than mailing address, and is not accessible.
- Indians are only starting to receive any direct mail offers. Traditional form of approaching consumers is through the media.
Suggested pathway to enter the Indian market
- Don't rush into India yet. Learn first by targeting the elites who have the resources to buy products that are more or less comparable to prices in the US.
- Think long-term. The infrastructure for a lot of support services is not keeping pace with the trends at consumer level.
- While the legal system exists, it is dysfunctional. Simple cases can drag for years. So work with an Indian entity which may be better able to make the system work in India.
- Systems like credit history and consumer profiles don't exist yet. It is best to use credit card payment or bank transactions alone. Installment payments without the backing of a credit card is not an option.