India Is Not an Easy Market to Understand and Operate in. Essay
It is true that India is not an easy market to understand and operate in. MNCs have realized this the hard way as their expectations have remained unfulfilled, and many have either suffered reverses or have had to wrap up their operations. Unable to figure out the reason for their failure, they have chosen to blame the market as erratic and fickle in its behavior.
But this is not true as there is more to India than meets the eye. This country came under the global spotlight only in 1991 when it embraced economic reforms and allowed FDI. Before that …show more content…
Therefore, while the Indian market was unexplored by foreign brands before liberalization, it was certainly not a virgin market and had a sophisticated distribution network and some well-nurtured brands promoted with the help of very skillful advertising and thorough market research.
Another aspect that makes the Indian market untenable for the MNCs is their lack of understanding of the fact that the emerging markets such as India are not what the developed markets were in their infancy which makes the contention, that Indian consumers are today like what American consumers were 20 years ago, wrong. The Indian market exists in real time, is acted upon by all the forces of today and is a product of its own unique consumer culture and evolutionary history which we discussed earlier.
Despite these disappointing realizations of the MNCs, the