The recession is not yet over for most of the western world! ‘Government intervention’ has become the norm to protect western world economies resultant of ‘burning the fingers’ in the past of extended credit and unregulated banking practice.
India, China and Brazil have become the focus point for most of the market creators as they scourge developing markets. The Chinese products have flooded the Indian markets in many industries..consumer durables, electronics, home appliances. Personally, I feel it is a losing proposition to do trade with china as it results in trade imbalance. You land up buying more..in fact…too much…than selling to them! Let us understand the need to apply methods to succeed in developing or emerging markets.
It is quite certain that there would be ‘changed world’ as I have mentioned earlier. In order to succeed…customer orientation and guarantee of service and quality…will be the crux of best business practices. As emerging markets consume ‘world products’ to meet their demand, their expectations have also risen! It would be a grave mistake to take them for granted and supply products or services that do not meet global standards. The hyper markets in Mumbai resemble those in the middle east offering options like never before.
Unfortunately, GDP is linked with credit and that is the reason for delayed recovery from the crisis in western markets. There is a deliberate effort to cut or reduce credits in these markets resulting in very low growth rates in US and UK. The need to ‘spend less and save more’ is in USA, UK and other markets in the Europe. And the markets are not growing as expected! So, it is ‘low growth+high competition’ markets in developing countries for quite sometime. And the infrastructure is grossly lacking in India to support new business operations. Also, let me tell you that the consumer behaviour in India is not likely to change drastically ( as in the west) since they are not affected by the crisis and debt levels are generally lower.
The only way to succeed in emerging markets are:
1. Be decisive
2. Be pro-active and innovate
3. Drive for efficiency
4. If you delay, a braver competitor will get the market faster and quickly
5. If the resources are cheaper, Go for it and invest!!
Besides, the demographics support India due to growing ‘youth’ population in the coming years.