India : The 110 Billion Dollar Opportunity in 2014 Selling to Companies in India
Gunjan Bagla, Managing Director Amritt, Inc. www.amritt.com Confidential, Property of Amritt Inc. © April 7, 2014
100% Electronic Elections in India This Week
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PROPRIETARY & CONFIDENTIAL
Global Companies Rush to India 3
PROPRIETARY & CONFIDENTIAL
India Imports the Most Weapons, USA Wins 4
PROPRIETARY & CONFIDENTIAL
Hollywood Marries Bollywood 5
PROPRIETARY & CONFIDENTIAL
Who has 8.85 million followers on Twitter?
Meyer Wolfsheim
in The Great Gatsby (2014)
$110 Billion Opportunity for Americans
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• American trade with India crossed $110 billion in 2013
• India ‘s Fourth largest economy in Purchasing Power Parity
• after USA, China and Japan; GDP approaching $2 trillion o The second most populous country with a population of 1.2 Billion people.
o India has more than 50% of its population below the age of 25; o more than 65% below the age of 35 and only 5% above 65 years old
• The 6 top urban areas account for more than 60 Million people
• Free Press, World’s largest Democracy, The oldest stock exchange in Asia
“Three Magic Words” every Marketer Uses 7
PROPRIETARY & CONFIDENTIAL
How many potential mistakes are embedded in this statement?
Select a Distributor
#1: DISTRIBUTOR?
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For some companies distributors are the right solution. But for many there are other options: Direct or Remote Sales
StepOut.com, Pratt & Whitney Engines
Sales Person
Automotive client: 1 sales person
Joint Venture or Subsidiary Paramount’s Wonderful Pistachios
Licensing your technology, brand Leverages your IP
Others
#2: “A” implies one Entity for all of India
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Most companies would not choose one distributor for all of Europe
India’s has 1.2 billion people compared to under 800 million in Europe
With 23 languages and 28 states, India is truly a subcontinent
Very few distributors are well capitalized or have national scale
Unilever has over 4,000 distributors in India
#3: “Select” or Find
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Many companies try to choose from among those who have contacted them or met them at shows
Quite a few get more inquiries from India than anywhere else
It’s only because the country has 1.2 billion people!
In a booming economy, the most capable and competent partners are often too busy growing to pitch you.
A determined, detailed search to map out the potential landscape for market entry is usually essential
Markers of Success in India
PROPRIETARY & CONFIDENTIAL
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Prepare, prepare and prepare
90% of the work is done before you visit
Forget what you learned in China
India is a complex, textured, pro-American democracy
Patience is a requirement
Marathons, not sprints. Persistence is rewarded
Failure is Easy, Here’s How
PROPRIETARY & CONFIDENTIAL
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In India,“They speak English”
Maybe, but they don’t think American
Also out of 1.2 billion, perhaps 100 million are fluent in English
“I have an Indian on Staff”
But India has changed since they left!
“Let’s wait”
Walmart waited
Tesco now leads
Coke’s Secret Formula
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Muhtar Kent, CEO of Coca Cola
“India now ranks among our top ten markets in unit-case sales. The Coca-Cola Company and its global bottling partners will invest $5 billion in our India operations between 2012 and 2020. By the end of that period, we think India could be one of our top five global markets.”
“The key to this success has been learning to see the Indian market as it is, not as we wished it to be.”
Resources
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Google is not your friend
Many online directories
Most are limited help
U.S. Government Resources
Commerce: Gold Key Service is a good start
Agriculture: Staff on ground
Defense: Attaches helpful for billion dollar efforts
Reading and Watching
History, Culture, Business Practices
Movies: Monsoon Wedding, not Slumdog
Advisors
Consulting Companies that understand USA and India
Next Steps for Success in India
Amritt, Inc. Gunjan Bagla [email protected] (562) 299 9204
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Harvard Business Review article on “Overcoming Pitfalls in India’s Market”
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