So often is the case that start-ups based in the other hemisphere are trying to have an “emerging markets” play but it opens an interesting point – do markets like India really open themselves properly for web-based traditional B2C direct routes or is the distribution strategy the only way forward?
Take for example, from our experience it seems the best route to customers is via the big distribution mechanisms and you need to run your web business with a bit more brick and mortar to it…
So if you have a web firm the routes as I see it
– bundble with connectivity
– bundle through retail computer sales
– bundle through retail with similar TG
The savings you make on marketing are huge, you get a customer that has some quasi trust relationship with the original provider and more importantly you get a partner interested and aligned.
Then matters of hosting, marketing, nomenclature, legality – everything is different in a country as diverse as India.
The next most interesting – and possibly doing a 180 here, is whether a foreign company with an indian heart can achieve stronger results in India than a domestic play and I think here is where things get a bit grey but sometimes this combo can be a winner overall since they have the “internationalisation” which gives credability but have the “local” knowledge and market schematics to be winners. I think HSBC coined the term “Glocal” and this could be a good adjective for startups looking at an EM Strategy.
More to follow…