The CEO guide to India
The Indian atmosphere is changing and getting a correct entry in India is critical. India is a powerful engine of the global economy, posting a high single digit GDP growth. We did see a slow down in 2012, but since then, growth has been nearing double digits.
Economists believe that during the next 10 to 15 years, India has the potential to out perform the rest of the world and take its place as a full-fledged advanced economy. This CEO guide discusses matters to help executives plot and plan their course in India’s fast changing economic landscape.
A new growth model
The frontline discussion about India is growth, employment, smart cities & empowerment. All signs, the general view is that India can be on track to cross double digit GDP growth in the next 5 years.
The consumption shift
The government understood that India’s investment led model had to change to meet the demand from India’s emerging middle class, whose spending is contributing to India’s growth. India’s youth contributes 65% of the nation’s population. They now have the aspiration to own mid and high end brands, instead of Chinese goods. This demographic is willing to spend the extra bucks for better service after sales. India is now, not only a product country, but also a service one. So products alone, cannot make an impact, if not supported by service.
The implication for CEOs is clear: recognize India’s consumers potential and try to get ahead of the curve in meeting demand. Some companies might need to beef up the research arm of their sales and marketing organizations. Still, others will want to focus on delivering of exceptional customer experiences to set themselves apart from other competitors.
The digital effect
As India makes its digital transition, the impact of digital technologies on the evolution of commerce, the service sector, and the talent management will be profound.
Digitizing Commerce
34.8 percent of India’s massive population of 1.32 billion, is online. 7 percent higher than last year. As commerce grows, parallel eco-systems also need to evolve, like logistics, payments, storage, inventory management, talent management.
The penetration of e-commerce is low, compared to United states (266 million) or France (54 million), but, online transactions add roughly 6 million new entrants every month. Making the most out of this opportunity we require, e-commerce players in India to follow the data analytics practice followed in developed countries.
India is at the cross roads, but if the country succeeds in its digital transition — a fresh set off opportunities and challenges await for businesses to enter in India.
