Launching and succeeding in the Indian market can be a complex endeavour for international brands. Various factors contribute to success or failure. Here are some common and unique reasons why an international brand might struggle in India, along with brief explanations and examples:

1. Cultural Insensitivity: Failure to understand and respect cultural nuances can lead to products or marketing strategies that do not resonate with the local audience. Kellogg's faced challenges initially in India as traditional breakfast choices differed. They adapted by introducing products like 'Pongal' oats, catering to local tastes.
    
2. Lack of Localization: Offering products or services that are not tailored to local preferences, tastes, or needs can lead to market rejection. McDonald's initial failure in India was attributed to a lack of vegetarian options. Adapting the menu with local favourites helped overcome this obstacle.
    
3. Price Sensitivity: The Indian market is often price-sensitive, and brands that don't offer value for money may struggle. BlackBerry failed to gain traction in India due to its premium pricing strategy, especially when more affordable smartphones entered the market.
    
4. Regulatory Challenges: Complex and evolving regulatory environments in India can pose challenges for international brands unfamiliar with local laws. Amazon and other e-commerce platforms faced regulatory hurdles, including foreign direct investment (FDI) restrictions, requiring them to adapt their business models.

Indian Middle Class is Bigger than Many Country's Markets Put Together

1. Competition from Local Brands: Strong competition from well-established local brands can make it challenging for international entrants to gain market share. Coca-Cola faced tough competition from local brands like Thums Up and Limca, impacting its market dominance in the beverage sector.
    
2. Distribution Challenges: Inefficient or inadequate distribution networks can hinder a brand's ability to reach consumers effectively. Apple initially struggled with limited distribution channels, allowing Android-based smartphones to dominate the market.
    
3. Misalignment with Consumer Behavior: Failure to understand and align with the unique purchasing behaviours and preferences of Indian consumers. Yahoo's failure to adapt to the shift toward mobile internet usage in India led to a decline in its relevance compared to competitors like Google.
    
4. Poor Marketing Strategies: Ineffective or culturally inappropriate marketing strategies can lead to a lack of brand resonance. Reebok's "cheat on your girlfriend, not on your workout" campaign faced backlash in India due to cultural insensitivity and was subsequently pulled.
    
5. Technology Adaptation: Ignoring the diversity in technology usage and internet accessibility can limit a brand's reach. Twitter faced challenges in India due to its limited localization efforts and slow response to user preferences compared to regional platforms.
    
6. Social and Environmental Responsibility: Brands not demonstrating social and environmental responsibility may face criticism in a socially conscious market. Nestle faced a backlash in India over Maggi noodles containing lead, impacting its brand image and sales.

Hard luck, you could not get the best of the Indian market and consumer in your first go, but that should not be the last one for sure. The Indian Market is huge and can't be ignored. It is growing and thus is changing rapidly, so why your brand didn't work yesterday must not hold, forever.

But before you relaunch your brand in India, you must take a few steps that will ensure you have done the homework and further planning well. Here are a few steps with some examples to help prepare well for your relaunch:

1. Conduct an Audit and do a Post-Mortem Analysis: Conduct an Audit a detailed analysis to understand the reasons behind the failure. This involves examining internal factors such as strategy and operations as well as external factors like market conditions. A tech brand in India may conduct a post-mortem analysis to understand whether the failure was due to a flawed product, inadequate market research, or an inability to adapt to changing technology trends. Nokia's entry into the Indian smartphone market failed due to a lack of adaptation to changing consumer preferences and the rapid growth of competitors like Samsung and Xiaomi. A post-mortem analysis revealed the need for a more agile approach to market trends.
    
2. Learn from Mistakes: Use the failure as a learning opportunity. Identify mistakes made during market entry, product development, or marketing, and use those lessons to improve future strategies. A fast-food chain might learn from a failed launch that its menu did not cater to local tastes. Subsequently, it could adjust the menu to align with regional preferences. McDonald's faced challenges in India initially due to a lack of localization in their menu. They learned from this mistake and adapted their offerings to suit Indian tastes, introducing items like the McAloo Tikki burger and a range of vegetarian options.
    
3. Seek Feedback: Gather feedback from customers, partners, and stakeholders to gain insights into the aspects that led to failure. Understanding the perspectives of those involved can provide valuable information. A company may survey customers to understand if issues such as delivery times, product quality, or customer service contributed to the failure. PepsiCo faced backlash with its snack brand Kurkure due to concerns about its ingredients. The company actively sought feedback from consumers and addressed concerns by improving transparency about the product's composition.
    
4. Adapt and Pivot: Be open to adapting the business model or pivoting to address the identified challenges. Flexibility is crucial for survival and success in a dynamic market. Uber initially faced challenges in India against local competitor Ola. Uber adapted its strategy by introducing services like Uber Auto and Uber Moto to cater to the preferences and affordability of Indian consumers.
    
5. Build Local Partnerships: Establish strong partnerships with local businesses or experts. Collaborating with entities that understand the local market can provide insights and credibility. An international fashion brand might partner with a local retail chain to better navigate the nuances of Indian fashion preferences and gain a foothold in the market. Walmart's acquisition of Flipkart was a strategic move to establish a strong presence in the Indian e-commerce market. By partnering with a local player, Walmart gained insights into the market and expanded its reach.
    
6. Understand Cultural Nuances: Appreciate cultural, social, and economic nuances. Tailor products, services, and marketing strategies to align with local preferences and behaviours. A global cosmetic brand might adjust its marketing campaigns to reflect the diversity of Indian beauty standards and cultural aesthetics. Starbucks customized its menu and store designs to align with Indian cultural preferences. The introduction of beverages like the "Tandoori Paneer Roll" and the use of local artwork in stores demonstrated an understanding of cultural nuances.
    
7. Assess Regulatory Environment: Understand and navigate the regulatory landscape. Ensure compliance with local laws and regulations, and be aware of any changes that may impact the business. Airbnb faced regulatory challenges in India related to housing and safety concerns. The company worked with local authorities to address these issues and comply with regulations, demonstrating a commitment to responsible business practices.
    
8. Customer Engagement and Communication: Maintain transparent and open communication with customers. Address concerns, provide explanations, and communicate any changes in business strategy. Building trust is crucial. An online streaming service may communicate changes in subscription plans, content offerings, or user interface based on customer feedback to rebuild trust after a service outage. Nestle faced a crisis with its Maggi noodles in India due to concerns about lead content. Nestle engaged in transparent communication, conducted recalls, and worked with regulators to rebuild trust with consumers.
    
9. Evaluate Market Entry Strategy: Reevaluate the market entry strategy based on lessons learned. Consider factors such as market research, target audience, competitive landscape, and distribution channels. A global electronics brand might reassess its pricing strategy and distribution channels to better compete with local competitors after a failed launch. Walmart-owned Best Price wholesale stores faced challenges in the Indian retail market. The company reassessed its market entry strategy, focusing on e-commerce through Flipkart to adapt to changing consumer behaviours.
    
10. Financial Management: Carefully manage finances and resources. Assess the financial health of the business and make necessary adjustments to ensure sustainability. A startup in the renewable energy sector might reassess its budget allocation, focusing more on R&D and less on marketing expenses after a failed attempt to gain market share. Amazon invested heavily in its operations in India, facing initial losses. However, the long-term strategy paid off as the company gained a significant market share, showcasing the importance of strategic financial planning.
     
11. Consider Rebranding: If the brand image is associated with failure, consider rebranding to create a fresh start. A new identity may help in overcoming negative perceptions. An online travel platform might undergo rebranding, changing its logo, colour scheme, and messaging to signal a new beginning and emphasize improvements in services. Uber rebranded its image in India with the "Move Forward" campaign after facing controversies. The rebranding effort aimed to change negative perceptions and demonstrate a commitment to improvement.
     
12. Seek Professional Advice: Consult with local business advisors, legal experts, and consultants who specialize in the Indian market. Their expertise can be invaluable in navigating challenges. A multinational manufacturing company might seek advice from a local business consultancy to understand supply chain challenges, labour laws, and market dynamics after a failed expansion attempt. Apple faced challenges in navigating India's retail regulations. Seeking professional advice, the company explored collaborations with local partners to comply with regulations and expand its retail presence.

These steps are interconnected and should be part of a comprehensive strategy for rebounding from failure in the Indian market. The examples provided are illustrative and may not represent specific real-world cases.

For more, contact us at Fox&Angel, we are your India expansion partner, hand-holding you through the complex maze of India's growth.

Originally Published at: Ranjan Das- Linkedin