India offers companies all over the world massive opportunities to expand their
business or set up new ones. The rapid economic growth of the Indian market in
recent years, owing to technological advancement and infrastructure development has
lead to its emergence as one of the largest global markets in the world. However, if
any company wants to consider tapping into this market of huge opportunities, it is
important for them to carry out market research in India first. Only with an in-depth
understanding of the Indian market, the consumers, the business practices and
potential prospects companies from Europe can become successful in the emerging
Indian market. Thus market research in India is one of the most vital tools required by
any organisation. In order to ensure the best possible chance of success, it is pivotal
that the market research in India should be carried out by an experienced and
dedicated team of market experts. Additionally, the high level of competition in India
has considerably increased
the importance of a highly accurate and judicious market research in India to
carefully plan an entry into the Indian marketplace. Eurobrands has has been offering
market research services in India for the past couple of years now to discover the
different connections, strategies and technologies required to minimise the risks and
maximise opportunities for European businesses in the Indian market.
The Managing Director of Eurobrands, Andreas De Rosi is here with us to discuss
Varun Kapoor: What is your take on the existent market conditions in India?
Andreas De Rosi: It depends on the sector. If you look at the automobile industry
you will notice double digit growth rates and new cars being manufactured and
launched every month. Also the service sector is doing very well. Business, IT and
knowledge outsourcing is probably going to cross the US$200 billion mark by 2020.
These are some of the sunrise sectors of the new India and the challenge which the
Indian government is facing now is to initiate a similar growth and success story in
other sectors like agriculture, a sector which still employes more the 50% of the entire
population of India.
Varun Kapoor: Which analytical methods are you using to research the Indian
Andreas De Rosi: Our clients are small and medium sized companies from Europe.
They need practical information and have questions like: What is the potential of my
product in India? Where is the price trash hold level? Which distribution channels are
there and who are the most active importers and distributors? They need to know how
products are being used in India and why certain products do better then others. So we
work a lot with trade data to find out active importers and competitors and then we go
鈥渙 n the field 鈥?to see how products are being sold and used by the consumer. We
try to avoid writing long reports and focus on the delivery of short presentations
which come straight to the point.
Varun Kapoor: Why do you think that businesses need to adapt to the Indian market?
Andreas De Rosi: There may be different reasons. It can be a price issue, taste or
product usage issue. Some products simply don 鈥檛 sell because of high logistic
costs and duties. Imported products end up being too expensive. Food and beverage
products may have to be adapted to the Indian taste or certain machines may need to
perform under conditions which are different from those in Europe. Many European
companies make the mistake when they calculate that 1% of over one billion people
will buy their products. If the product is not suitable for the Indian market not even
0,0001% of the population will buy it. So doing market research in India before
launching a product is an absolute must.
Varun Kapoor: How can your multicultural workforce be more effective when doing
business and market research in India?
Andreas De Rosi: Intercultural communication plays an important role when doing
business across borders. Often the reason for failure is not a product or price issue, but
just a communication problem or lack of cultural awareness. It 鈥檚 not so much a
language problem because both European CEOs and Export Managers normally speak
good English and the same goes for the Indian management, but it is more the way of
doing business. Italians for example prefer to close deals quite fast, whereas Indians
like to take their time and have a couple of meetings before taking any important
decisions. In the market research in Indian context however, knowing the different
local Indian languages (there are 18 official languages) is very important. Especially
when market research in India is being carried out in the consumer goods sector, it is
important to communicate in the local language to get the consumer insight and
opinion about certain products.
For more information about the market research services offered by the market
research and sales & marketing company Eurobrands India, you can visit their
website at www.euobrandsindia.com.