Imagine that you are using a product to enter a foreign market. Choose any specific product or service category and think about the cultural, demographic and national issues involved with entering that market. What are the cultural nuances that you have to look for? Consider issues such as language, religion, time zone, and national geography. Choose an emerging market where English is not the native language and use reputable outside resources to make your point.
Entering the retail industry is a good idea, as retail products are to be generally accepted in foreign markets as well. The business of food retail is in the limelight in the global retail market. The main features of this product line are different flavors and tastes. The company wants to introduce fresh fruit juices for an immense range of customers in developing countries. India is a potential market for food retail, especially for different juice products. The significant advantage that the company can gain in the market is the increasing population. Based on the population, the management of the company has to make several segments and enhance the sales accordingly.
The most important thing is to contain cultural integration. There is a difference between US and Indian culture. English is not a native language in India, and it is one of the significant differences regarding the culture. Another culture nuances are religion, people’s behavior, communication, and living standards. Thus, to make the business successful in the market, cultural integration is the best option to come up with relevant products and streamline appropriate marketing strategies.
Culture
- In 28 states, India’s official language is not visible, as people in different regions speak different languages.
- It has been revealed that 59% of Indian residents speak different languages (Other than Hindi). Hinduism and Islam are the two main religious (Zimmermann, 2017).
- The society seems conservatives due to different religious and social norms and traditions.
- According to the guardian, almost 40% of people in India are non-vegetarian, and it goes in favor of the retail food business in the country.
Demographic
- The total population of India is 1.37 billion. 67% of people in India live in rural areas, and it can help the company to localize the business process.
- India is also full of young population. Millennials are in the limelight in these regions, and these can be targeting customers.
- 74% literacy rate seems an excellent benefit for the company, as customers can make a rational decision when buying products (Worldpopulationreview.com, 2019).
Economic
- According to 2019 reports, GDP of India is $2.972 trillion.
- The buying power of people in this region has been increased, and it also goes in favor of the organization.
- Foreign direct investments have also increased, and of course, the firm also wants to be part of it. Economically, India is a potential market, as return on investment has been ensured.
Political
- The political system of India is getting stable. The most important thing for an organization is to build and sustain a good relationship with political parties.
- The political system seems supportive of the company.
- India is one of the largest democracies. Each state may have different policies or regulations. Thus, the business in India will be flexible, which may ensure the return.
National Geographic
- India is full of deserts, plateaus, and mountains. It is bordered with Pakistan and China, which also supports people’s mobility.
- In different regions (geographical), people may contain different cultures, needs, and styles. Thus, the company must idealize the location to enter this potential market.
- Based on the geographical needs of people, the product portfolio must be introduced by the company to be relevant and lucrative.
In the end, it is to conclude that entering in India is a good option. However, distinct cultural differences are to be understood by the company management to make the triumphant entry. In the food retail chain, localization is key, and cultural integration is the best option that this company can utilize.
References
Worldpopulationreview.com. (2019, July 11). India Population, 2019. http://worldpopulationreview.com/countries/india-population/
Zimmermann, K. A. (2017, July 20). Indian Culture: Traditions and Customs of India. https://www.livescience.com/28634-indian-culture.html
