7 RULES OF GROWING AND THRIVING IN INDIA
5000 years and still ticking. Something must be right about this country and its people – together, its markets. Through the ebb and flow of change across a vast expanse of time, terrain and people, India constantly fascinates, challenges, frustrates and rewards generously in different ways every day.
The Indian economy has clocked over 5% GDP growth year-on-year since 2002, touching up to 8% and 9% in some years. Much of the growth is driven by domestic consumption and production. There are no real signs of this slowing down in the near future as millions of Indians jostle to enter the ranks of the great middle-class in a country blessed with resources.
We have had the advantage of observing this market and participating in it for the last twenty-five years and it still challenges us and reminds us that nothing can be taken for granted in this exciting country. It is like no other. Knowing this is the first rule to business success in India.
The second rule is that India is not one market but many markets. In a commercial sense, there is no ‘one India’. There are several heterogeneous markets, each providing significant opportunities. To know these different markets, how they differ from each other and which provide you with your unique opportunities is imperative.
Each of these different markets sees significant activity, organised or unorganised. Some are greatly under-served and some very over-served. Your business needs to know what the market conditiona are and whether your battle is for market share,market presence or both. Either way, there are no templated solutions you can bring in. Innovation in product, service, communication and organisation is key. ‘Innovation not transposition’ is the third rule.
India has many problems to be solved. The requirement to innovate is driven by the fact that if you aren’t solving real problems, you aren’t being relevant. If you aren’t relevant, you can have little, sustained success. Not only are the numerous markets in India heterogeneous, they are also very fluid and dynamic. Your ability to stay aware of the changes and innovating to remain relevant will determine how long you sustain your success. ‘Keep solving real problems’ is the fourth rule.
There are nearly 1.3 billion people living in India. Of these, 650 million are younger than 25 and 850 million are under 35 years of age. While financial capital mobilises resources to produce goods and deliver services, it is human capital that actually produces and delivers them. Any sustained commercial success will be determined by how well a business leverages this human capital. Your business needs to invest in developing and skilling people to ensure your business can grow sustainably. Any business model that neglects raising and developing human capital and creating meaningful jobs in India will miss the long road. ‘Meaningful work is meaningful business‘ in India is the fifth rule.
Per capita consumption in India is currently at $705 per annum compared to $31,200 in the Unites States, $25,198 in the United Kingdom, $3851 in Brazil and $1307 in China. There is a long way to go for India. However, there is one interesting characteristic that emerges often among India’s consumers. They consume but aren’t inclined to consume excessively. For a variety of reasons from culture to economics and now, the environment, Indians reach consumption saturation faster than people in the developed economies. Businesses that find ways to spread out consumption across several market segments will see sustained success in India. This is the sixth rule.
Finally, India is a new nation but an ancient culture. The interaction between these two creates some incredible paradoxes. Know the values at work in the marketplace. These are no different from the values that operate in households and among people every day. Business operates on trust and loyalty. It is implicit and not explicit. Success is defined by much more than just material wealth and once committed, people exhibit long term loyalties – to other people, businesses, brands and employers. ‘Invest in building the relationships’ is the seventh rule.
These ‘rules’ as we’ve stated them might seem simplistic. But too often these are neglected in the pursuit of quantum growth. The marketplace is littered with the remnants (and often not even that) of such businesses. Nested within each of these rules are clues to business strategy spanning various functional areas. Explore them more fully and you will find direction to growing and thriving in India.