"In 2020, India's average age will reach 29 years old." Punima Shenoy The Gain found the potential of the Indian market in terms of the world's number 1.63 billion population and youth population.
Global companies are entering the Indian market. India is attracting attention as an attractive market, with more than 1.3 billion people, a high proportion of young people, and a growing middle-class consumer who has purchasing power. India, which is also a start-up country with more than 39,000 start-ups based on outstanding IT talent, is also investing in leading global funds. Only 36 trillion won was invested in India last year, more than China. It is this market that has great potential but is difficult to enter. What should domestic startups prepare for entry? India Accelerator The Gain Phnomachaehnoi gave a lecture at the Next Rise 2019 held on the 24th on the topic of India's entrepreneurial ecosystem and how to advance overseas.
The reason why it is difficult to enter India is because there are different opportunities, cultures, standards, languages and economic levels in each region. The same country, but the race itself is different. For this reason, it is important to carefully consider the area in which you are going to enter and to develop a detailed strategy. "In India, one strategy does not work elsewhere," he said. "We need different strategies for different regions." He added, “Before entering the Indian market, it is necessary to consider how B2C, B2B, B2B2C, etc. would be good according to the user's preferences and secure distribution channels.”
If you are in Korea, you can get a quick answer, but in India it may take time to receive a correct answer. That's why we have to go on a long-term relationship with each other.
He also shared his success story in India. "We need to set up four or five target customers and provide tailored services based on customer orientation," said Shnoyei. McDonald 's, Pizza Hut, KFC, etc. It is a success factor because the products for the Indian people who do not consume beef and the packages considering the regional characteristics are success factors. One approach is to capitalize on long-term relationships with India through top-down leadership, such as Guiana and Hyundai Motor.
Products that meet local conditions in India are also one of the success factors. The Samsung Washing Machine has gained popularity as a product that consumers can use without worrying in the precious water, and Unilever has succeeded in selling shampoo which is recognized as luxury goods in India as bag unit instead of bottle unit. Mr. Sheino pointed to Automotive, Smart City, Logistics, Healthcare, Retail and E-Commerce as potential growth areas in India.
"It is also important to have a local partner in India," he said. This can be helped by localization strategies. In India, Uber's strategy to localize its services was to provide cash payment rather than automatic payment.
The Gain has partnered with KOTRA to connect domestic start-ups with local partners. He has helped six Korean startups enter the Indian market. "The bold determination and quick decision-making ability of Korean entrepreneurs will be a strong advantage in entering the Indian market," said Mr. Shenoy.