I recently read an article like this. It was an article that clearly revealed opportunities and optimism about the Indian market and interest in Korea. However, there are many parts that may lead to misunderstanding if you just read through them, so I think I need to sort them out. Although the attractiveness of the Indian market is clear, there are various challenges and risks behind it. Personally, I think that India and South Korea are polar opposites in terms of market characteristics, but the reasons why the Indian market is difficult are as follows.
Regional variations and economic disparities: The level of economic development in India varies greatly from region to region. The gap between large cities and rural areas leads to differences in consumption patterns and purchasing power.
Complex regulations and administrative procedures: India's regulatory environment is very complex and there are uncertainties in tax and customs procedures. If you do not have a good understanding of the local area, it is often a failure.
Cultural diversity and language barriers: From religion to language, India is a country that cannot be counted on one finger. This part is more difficult than you think. Changing language, religion, and culture means a new approach every time for service providers.
We are not the only ones looking at India: Competition is fierce as many local and global companies have already entered the Indian market. In particular, as it is a market with high price sensitivity, local companies often stamp out industrial products.
Infrastructure issues and logistics difficulties: This was recently discussed in Shuka World while talking about India's Prime Minister election, and except for a few major cities, the infrastructure for inter-city transportation is poor. Additionally, Internet distribution is not as smooth as expected.
Do you know why I said it was the exact opposite of Korea? It is difficult to search around the world to find a market with one cultural background, one language, and a similar lifestyle as Korea, with half of the population concentrated in the metropolitan area. In addition, Korea is a very well-off developed country in terms of GDP. In other words, it is a great market with purchasing power and similar customers.
Sometimes people talk about opportunities for countries with large populations, but personally, we need to look at not only the population, but also the language and culture. There are many more cases where people approach only based on population numbers and end up getting burned. If you are curious about this, try testing it with a Facebook ad and you will get a feel for it.
Similar markets include Taiwan, Japan, and China (limited to first-tier cities). East Asian countries are truly attractive markets. Of course, this is not a story about expanding into India or overseas. As I always say in consulting and elsewhere, it is very difficult to approach the “American market” or “Japanese market.” It would be better to target the market by focusing on a specific city in a specific state in the United States, or a city or district in Japan. The moment we define the OO market, we are often swallowed up by the feelings of that country or culture without realizing it, making it difficult to make good decisions.
