sannam s4 · 2018-04-04 · market entry –myths & realities we do not have the capital to...

Sannam S4Helping organizations Explore, Enter & Expand into

dynamic markets around the world

@Sannam_S4

Sannam S4

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

What we do

End-to-end services for market entry & expansion for ambitious organisations to Explore, Enter & Expand into dynamic markets.

Market ResearchFinancial Consulting

& Tax AdvisoryHR Support

Sectors we serve

Corporate Government Education Non-profit

India - Fast Facts

• Economy is growing at a rate of approx. 7%, growth is expected to average at about 7.4% over 2017 and 2018.

• 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

What Do You See?

What Do You See?

Satellite Technology Leeds

Pigment Manufacturer Manchester

Vitamins Co. Bristol

Logistics London

Mail Co. Liverpool

Motorbike

ManufacturerShoe Manufacturer

Glasgow

100+ Colleges

Food

Franchise

Sheffield

Medical Egpt.

Clothes

Retailer York

Branding Co. CA

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

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


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


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.


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.


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?


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.


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


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)


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.

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

The Thought ProcessWhatever 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.

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.

Questions?

Brian Hyland – Senior Manager, Business Development

[email protected]

Tel: 07377 726 426

mailto:[email protected]

sannam s4 · 2018-04-04 · market entry –myths & realities we do not have the capital to...

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