Sannam S4. Helping organizations Explore, Enter & Expand into dynamic markets around the world. Sannam

Transcription

1 Sannam S4 Helping organizations Explore, Enter & Expand into dynamic markets around the world Sannam

2 Who we are Founded in 2008 by Adrian Mutton 150+ dedicated staff around the world Presence in 4 continents Assists over 300 organisations to Explore, Enter & Expand in dynamic markets Operates U.S. Business Centers as an initiative to support increased trade and investment between the US and India DIT Exporting is Great Partner

3 What we do End-to-end services for market entry & expansion for ambitious organisations to Explore, Enter & Expand into dynamic markets. Market Research Financial Consulting & Tax Advisory HR Support

4 Sectors we serve Corporate Government Education Non-profit

5 India - Fast Facts Economy is growing at a rate of approx. 7%, growth is expected to average at about 7.4% over 2017 and India s GDP right now is 2.26 Trillion. India is projected to be the world s second-largest economy behind only China. India has the world s largest youth population. Approx 570 million under the age of 24

6 What Do You See?

7 What Do You See? Satellite Technology Leeds Clothes Retailer York Pigment Manufacturer Manchester Branding Co. CA Medical Egpt. Vitamins Co. Bristol Logistics London Food Franchise Sheffield Mail Co. Liverpool 100+ Colleges Motorbike Manufacturer Shoe Manufacturer Glasgow

8 Market Entry Myths & Realities India has a bad reputation for corruption and to achieve success means you have to be prepared to offer bribes. India has had problems in this regard but is not alone. Over recent years, India has vastly improved their image as a result of various Government reforms

9 Market Entry Myths & Realities It s only a market for technology companies and for cheap outsourced labor Rising middle class of 250m+ with an appetite for goods and services from outside India

10 Market Entry Myths & Realities There is no Local expertise in our field / we can t find any There is an abundant bright, well educated and knowledgeable workforce.hard-working and ambitious too All are conversant in Western technologies, processes and products

11 Market Entry Myths & Realities Customers will pay a premium for our products & services In the top end/luxury sectors, yes but Value is key, Indian consumers and business owners are very cost conscious.

12 Market Entry Myths & Realities We can approach the market the same way we did China (or other markets) India needs to be treated as its own market. You will need local guidance and expertise to advise you on how to tailor your product, service & your pitch to the local market.

13 Market Entry Myths & Realities The only way we can enter the market is a JV partner There are many ways to enter the market and develop a long term strategy. Think about why you are choosing a particular strategy and is there an alternative?

14 Market Entry Myths & Realities We will succeed by having a distributor and by making one or two visits a year A market as complex and expansive as India needs a full time local presence if your business is to succeed. This doesn t mean distribution is the wrong approach, it just needs nurturing.

15 Market Entry Myths & Realities We didn t do detailed market research, but we met a great guy at a trade show Know your partners, know your market, avoid the horror stories

16 Market Entry Myths & Realities We do not have the capital to invest in such a big market Establishing a full time presence with a sales and marketing base for a year can only cost you around 150k (all in)

17 Market Entry Myths & Realities Repatriating funds out of India is practically impossible It s not impossible. Instead the requirements and processes to achieve this will depend on your original method of entry and entity structuring in the first place.

18 India more Fast Facts UK s is largest Inward Investor into India New Indian Government initiatives removing traditional barriers to entry are being introduced. every month India s Ease of doing Business ranking from World Bank improving vastly (jumped 30 places this year) In addition, high profile campaigns have been launched to attract FDI from around the world eg. Make In India Growth and Opportunities across all States: domestic household incomes set to triple FDI into India from all over the world is increasing

19 The Thought Process Whatever approach you take, ask yourself the following: Have I reviewed all the options for the right route to market? Is this the first (only) contact in India I have found / liked? Have I done detailed research on the local market e.g. pricing models, the competition, real cost of landing a product, product size, branding etc.? Do I really understand the consumer? Where do I start & how do I cover the whole country? Who is developing my interests on the ground? Do I have the management bandwidth/knowledge at HQ to make this work? Have I got dedicated product R&D & product development for India/Pan India? Fail to Prepare.Prepare to fail.and do be prepared to be patient.

20 Summary & Next Steps India s continuing rise as a global super-power is creating eye-catching headlines Opportunities exist across all major sectors especially Food & Drink, Healthcare/Life Sciences, Advanced Engineering, Cleantech/Smart Cities and Infrastructure Tech based Businesses: India can play a key part in your operational structure too.not just an export destination It s a complex, diverse market not without its challenges but the current Government are committed to removing/lowering barriers Your competitors across Europe will be looking at India closely so maybe you should be. Don t attempt to enter the market independently: enlist both Public Sector Support and Private Sector Expertise.

21 Questions? Brian Hyland Senior Manager, Business Development Tel: