“Going Local” what does that mean for foreign companies?
Traditionally, most foreign companies rely on extensive research and development to create a single product for global distribution. However, when it comes to emerging markets especially India, this strategy would not work often. The companies should be innovative in launching a product that meets the local needs rather than transposing brands and products from other markets. Make the wrong move and you won’t be successful or will have to invest a lot more than you originally planned. Before taking any decision, it is highly recommended to get to the ground and witness the problem that they are trying to solve.Going Local.
Although Gillette entered the Indian market in 1984 and launched its newest triple-blade system, Mach3 in 2004, sales were flat for a long time. Until 2010, Gillette India had been following a strategy of marketing cheaper-end US-developed razors. However, low-income Indian customers who could not afford Gillette’s premium price relied on the outdated, but traditional, double-edged razor shaving systems.Going Local
An estimated 400 million customers not happy with existing market offerings provided a promising growth opportunity for Gillette. Thus, it focused on understanding its customers and the challenges they faced.Going Local
The company realized that apart from affordability, customers also valued safety and ease of use. Those customers’ needs would not be satisfied by Gillette’s existing offering – most lacked running water, had to manage longer facial hair and sit on the floor while shaving.Going Local
Nor were they satisfied with the existing double-razor solution as they caused frequent cuts. Once Gillette understood this consumer segment, the company created a new customized product, which accounts for two of every three razor now sold in India.Going Local
An established corporation looking for new international markets makes a foray into an emerging market, carefully limiting its exposure by appointing an independent local distributor. At first, sales take off, revenues grow pleasingly, and the entry is praised as a smart move. But after a while, stagnation sets in and sales plateau.Going Local
ZingPro gets you on the ground data to crack the value proposition for the Indian market (firstname.lastname@example.org)