India is one of the most fascinating global markets that we cover. With over 7% growth that appears sustainable in the near future, relative insulation from a slowdown in China, and an increasingly business-friendly environment, FSG clients are taking a long, hard look at increasing their investment and allocation of resources in India. This week, I had the pleasure of interviewing Pratima Singh, FSG’s Practice Leader for South Asia, on the current outlook for India, the newly released government budget, and the implications for MNC executives operating in the country. It’s a fascinating discussion that can be heard HERE or downloaded from iTunes.
Over the last 12 months, in addition to our regular market intelligence-centric coverage of the Indian market, FSG has released the following 4 flagship studies for clients to assist them in planning and executing their successful growth mandates in India:
- Sub-national Prioritization: India is drawing increased international attention as one of the most resilient economies in an uncertain global economic environment. However, given the size and complexity of the market, there are substantial economic disparities within the country. Additionally, gradual liberalization and rapid decentralization are exacerbating already-significant regional differences. These factors make a state-level strategy acutely important for India. With this in mind, FSG developed a three-step framework for companies to prioritize and categorize states in India based on opportunity and business fit, allowing executives to make more informed decisions and strengthen their India strategic plans
- Digital Customer Engagement in India: India’s digital landscape is evolving rapidly. Driven by a number of factors, including the government’s focus on digital development; a young and digitally aware population; and, most critically, better connectivity due to the expansive reach of mobile phones, India is steadily moving toward a digitally powered economy. Companies that have a strong digital growth strategy in place today—particularly one that focuses on effectively engaging customers—will be better positioned to edge out competition as the country’s digital landscape transforms. With this in mind, FSG has developed a framework to help MNCs engage customers using digital platforms. Use this framework and the case studies in this report to build an effective digital strategy in India
- Distribution Management in India: India’s biggest tax reform, the goods and services tax (GST), has finally been implemented. The new tax removes artificial barriers previously present in India, making the movement of goods easier and increasing consolidation in the warehousing sector. These changes have important implications for multinationals’ indirect channel strategies. Companies should use the shifts in market to make internal changes, drive efficiency, and improve their distributor management process. FSG recommends implementing a capabilities-based approach, focusing on capabilities such as financial stability and information sharing, in the post-GST environment. Executives that effectively institutionalize a strong channel management process will be better positioned to beat competition and improve profitability in a rapidly evolving market
- Distribution Optimization in India: India is drawing increased international interest as the benefits of policy reform filter through the economy. These reforms, which will disintermediate distributor networks and change partner dynamics, will have a significant impact on companies’ indirect channel strategies. FSG recommends that multinationals use changes in the market to re-evaluate their distribution strategy and adopt a strategic approach to capturing long-term opportunity. This report provides a structured framework and tool that will help executives optimize their distributor network and increase efficiencies in India.
Any MNC executive with existing investments in India, or considering making an investment in the country should make reading these reports a high priority. They are chock-full of actionable strategic recommendations, tools/frameworks, and case studies. They also provides a wonderful and thought-provoking topic for FSG to moderate at a leadership meeting.
FSG clients can request analyst briefings and access our podcast and reports on FrontierView here.