MNCs find market manna in India

India contributes 10-25% of global sales for MNCs like Suzuki, Nokia, Honda, GlaxoSmithKline, Samsung and LG. But the share of revenue is still marginal- in most cases less than 5%.

India has become a favorite destination for many MNCs to do their business here. The advantage of entering into Indian market is tremendous. First one is India is full of resources. Then the labor cost is low. India is technologically better off then any other country in the world. There is huge demand in the domestic market. The Indian market has not been explored fully. There is still growth in this market. The white goods are in boom. Because goods like TV and mobile have not still reached to all the population in India. The tele-density is below 20 ( 15.5 latest figure) but still Nokia saw the highest sell in a day in no other country but India.

The Indian car market has crossed 10 million marks. So it is growing at a rapid pace. Suzuki can see the sell of its car under Maruti-Suzuki almost equal to the sell figure in its parent country i.e. Japan. For Honda also this is equally applied. The auto industry in India is booming because of younger population. The average age of India is around 25. So people are not much conscious of savings at this age but they are going for spending their earnings. The new generation has changed the tradition of savings. They are utilizing all the financial assistance like home loans, credit cards and much more. This change in view towards life is a biggest factor in the spending behavior of Indian consumer.

The problem for the MNCs is to customizing their strategy according to the Indian market. They can not apply the same strategy which they have adopted in countries like US and Europe. The Indian consumers are very conscious about the cost. They want value for money. So it is necessary for the MNCs to ensure that their product is giving value for money invested by the consumer.