Why are some of the most premium global brands not successful in India?

To understand success of a new brand in a new market, we need to understand three basic elements, the brand fitment with the user segment, product mix that is relevant to the segment, influencing the influencers.

Let’s look at all the three elements for success in India.

01. Brand fitment to user segment

A European brand has had 3 entries into the Indian market after three consecutive exits. Being at the top of the pyramid, they did consider the financial capital (Mumbai) to be the best place for them to start. High costs of retail establishment coupled more demanding customers, got them to move out of the country in a span of 18 months. The second attempt was in the IT capital of the country (Bengaluru). Result was not too different, except they stayed for an extra 4 months. What they missed out is that Mumbai has an easy access to Europe and China and the number of people preferring a high price point based brand would prefer to go to Europe and buy or a more frugal segment would look at first copies from China. Further, their designs were a bit flashy and a European tag would have helped them establish and actually grow profitably in a few cities in Northern India. A basic understanding which very few brands coming into India have.

02. Product mix for the target segment

Another high-end European brand of furniture, came to India with a lot of fanfare with an Indian partner who had a business of low-end furniture. There has been a lot of struggle from day one of their entry. They started with mass manufactured home furniture. In a span of 7 years, they realised that the price point they have been operating at, had customers who wanted customised furniture solutions. Today, they are doing almost 40% of their business with customised solutions. To be sustainable in this market, where there is no standardisation in home construction they have to offer 100% customised product sales.

03. Influencing the influencers

In the interior space, the influencers play a very key role - architects, interior designers & project consultants. Most brands enter large trade shows and believe, their connect with influencers are achieved. This could be a starting point of introduction. The brand would have also impressed the influencers. However, with more than 500 brands and 2-3 hours that the architect spends, what are the chances that she would remember your brand? With influencers, it’s not only about letting the world know that you have arrived. It's also about working with a select few who can see the value and work with the brand for their projects. This part of influencing the influencer is about really identifying a handful of influencers and working closely with them as partners in growth.

Your partner in India should be able to guide you in the right direction. Of course, it’s for you to choose the right partner!