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Indian Market's Magic Keys

Benefit From Gray Arrow A Kaytek Business Consulting Perspective

Most of the large global multi-national giants are not only viewing India as a source for Human capital, but also for it's possible potential as a large market for their products and services.

For instance, consider outsourcing. Here also, Foreign Players are active as Suppliers. Not just employers of Indian Software manpower.

Around this time last year, the local Business Press here reported a Unique kind of a Reverse-Outsourcing Deal here.

An Indian Telecom Company Bharati had outsourced it's Network Management Activities to the European leader in this sector.

The deal was worth US 400 Million $.

Yes. To be executed fully within India.

In an earlier article, I had mentioned about the dominance of American Brands in India in many sectors.

Both products and services. Examples abound of the same.

Out of the four pizza outlets closest to my home, three are of US origin.

Like all good competitive US companies, they keep each other on their toes.

My morning newspaper is flooded with their colorful product inserts, with attractive offers, each outdoing the other.

The Indian operations of a US healthclub and gymnasium global giant (owned by a good friend) has opened many outlets in Mumbai within the last couple of years.

They have seriously affected the market dynamics here of decades old competitors in India via their global scale operations and competitive pricing.

Guess where they have opened their next outlet in the Indian sub continent ?

Dhaka, Bangladesh.

Would you imagine that ?

A US Global Giant being aspired by consumers in one of the poorest countries of the world.

India adds a population equivalent to Australia's size every year.

So the market volumes here are huge. Possibly next to only China.

But, is the business easy ?

No, Sir.

Definitely, Not, Madam.

There are no low hanging fruits to be plucked.

Don't let the glitter of a Billion Consumers plus (India's population) mislead your senses (especially the greedy ones).

Like any competitive market, you have to dig in deep and smart.(actually, smard - smart plus work hard).

Out of our own company's nine direct competitors when we initially started our hardware operations, eight have closed down operations.

In India, Value Pricing is one of the Magic Keys.

My son back from Singapore during his holidays here, was amazed to find Rupee 1 (Roughly 3 US cents ) worth Single Serve Hair Oil Sachets being sold in India.

He carried back some samples to show his friends there. He could not believe that they were being sold so cheaply here.

In fact the Sub-Rupee (Less than Rs 1 ) Pack Size Consumer Goods which are very popular in the Indian semi urban and rural markets have become the focus of case studies of Business Gurus like CK Prahalad.

(Also, mind you the person who retails the goods at Sub Rupee is still making money, as is everybody else in the entire distribution chain.)

You can Buy a Decent Quantity Stomach Filling Thirst Quenching Chilling Coke or a Pepsi Bottle for Rupees 7 (US 16 cents) here. Till recently, they were available for Rupees 5 Only (US 11 cents).

MacDonalds is the most popular Fast Food Family Outlet in India. Their volumes in the Indian market place last year surpassed competitors who have been operating for more than 40 years.

Probably, only in India would you find a 'Vegetable' Burger, nowhere else.

Also, recently they have started Home Delivery Service here in for the first time anywhere in the world.

I always find MacDonald's operations fascinating, to be emulated possibly by the IT industry. Would that be MacDonald's Magic Key ?

More on that , maybe in the future.

Gray Arrow Email Us : Can we help in your Indian Market Strategies ?

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Updated on 27th March 2009
Posted on 16th February 2005

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