SaaS market opportunities
SaaS market opportunities – With increasing internet users and improvement in telecom infrastructure, India is growing as a lucrative market for SaaS companies .
Thanks to the conducive business environment, the small and medium enterprises (SME) sector in India has grown by leaps and bounds over the years. The SMEs are beginning to realise the benefits of technology in bring down the operational cost. Additionally, the digital push by the Indian government in the last couple of years forced all SMEs to embrace technology, increasing the demand for technology products and services, especially cloud and SaaS based. But at the same time, this is the most difficult space to be in as it is highly price-sensitive and value-driven.
Few tips on being successful in this competitive space for global companies:
It is advisable to go for multi-year pricing with the split payment. Fortunately, there are good number of FinTech products such ECS/EMI, which help reducing the financial burden on small businesses. It is important to do some POCs or trails with some companies to find the right value proposition. The common mistake that many Indian startups make is underpricing the product.
Indian companies need value for every single penny spent. Given their limited working capital, if your product can save cost or generate additional revenue, you are the KING.
The likes of Amazon, NetFlix, and Spotify are seeing mixed responses in the Indian market. Some multinationals adapt to the local demand and needs. However, some try to replicate their global business model. It is easy to guess which companies would be successful in India. India is unlike China from the socio-economic standpoint and the way business is conducted in India. varies from region to region. The global companies run multiple ads in different languages these days to connect with the diverse Indian society.
When it comes to Asian companies, it is easier to get into POC mode, but converting that into actual sale would require significant efforts. It is important to be able to talk in the same language as your customer to understand the issues. There are many cultural things that global companies need to understand. For instance, most businesses might reject your product for the reason not told to you. Find a good local partner.
India is big. The businesses are scattered and difficult to reach. It is advisable to have a hybrid channel strategy with your direct sales team covering the important cities and leave the rest to the channel partners. Having a strong inside team would be of great help in developing your channel network.